™£ NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS _
VOL. LXII No. 115 NOME, ALASKA. WEDNESDAY. SEPTEMBER 28, 1960_Per Copy 15^
Variable State ESC Tax Rate
Will Go Into Effect Saturday
JUNEAU, UP>—The new variable
tax plan for Alaska’s Unemploy
ment Compensation Program goes
into effect Saturday, Employment
Security division chief Merrill
Weir said today.
Most of the state’s 4,300 em
ployers will receive Thursday or
Friday notices of the Employment
Security tax rate they and their
employes will be required to pay
during the final three months of
this year.
There are three groups of tax
rates, tihe Class A or variable tax
rate, the Class B or standard tax
rate and the Class C or maximum
tax rate.
The rates apply only to the first
$7,200 of an employe’s annual
wage.
The current Unemployment Se
curity tax rate, effective through
Friday, is a straight 2.9 per cent
for employers on taxable wages
and -6 for all employes on taxable
wages.
The new variable tax rates ap
ply to those employers who have
made all necessary reports and
paid all employment security
taxes due as of last March 31.
Their tax rate, and that of their
employes, is based on quarterly
declines of the payroll of the
business during the measuring
period prior to March 31.
The measuring period, depend
ing on the life of the business
concerned, can be up to 12 quar
ters in length or as few as four
quarters.
Burton Island Reaches
Barrow After Setting Up
Arlis I Research Station
POINT BARROW, M — An
elated crew of the 6,000-ton U.S.
Navy ice breaker Burton Island
Tuesday told how they penetrated
farther into the polar ice pack
than any other ship under her
own power to establish a scien
tific camp on an ice floe.
Name of the new Arctic re
search station, 420 miles north
east of this farthest north settle
ment on the North American con
tinent, is Arlis 1. The first three
letters are abbreviations for the
Arctic Research Laboratory and
the last two meaning “Ice Sta
tion.” The University of Alaska
administers the laboratory at Pt.
Barrow for the Office of Naval
Research, Washington, D.C.
The Burton Island, whose home
port is Seattle, left Barrow Sept.
3 and arrived at Arlis 1 on Sept.
10. Seven men were left aboard
the floe.
Arlis 1 is a relatively thin
ice floe, probably only six to eight
feet thick and only about three
years old. It is approximately two
miles wide and three miles long.
Stale Police Will Seek Approval
To Build Four Police Stations
JUNEAU, M — The State De
partment of Public Safety will
probably seek legislative approval
next year for the construction of
State Police stations at Glenallen,
Delta Junction, Dillingham and
Kotzebue, Commissioner M. B.
Underwood said today.
Underwood said the department
probably will seek authority to
construct builings at the four sites
which would include an office,
a one or two cell jail, a garage,
living space for the trooper and
his family, and office space for
any other state agency which has
an office in the four towns.
The more pronounced the quar
terly pay decline during the mea
suring period, the more unem
ployment security tax the em
ployer, and his employes, will
have to pay.
In effect, the object of the pro
gram is to force those employers
engaged in extreme seasonal op
rations to pay more unemploy
ment security taxes.
For example, if an employer
had a business which is not of a
seasonal nature and his payroll
stayed at the same level or in
creased—but did not decline —
during the measuring period, he
and his employes would be elig
ible for the lowest tax rate avail
able.
That would be 1.5 per cent of
the total payroll for the employer
and .3 per cent of his pay for
each employe.
The rate is boosted, commen
surate with the increase in quar
terly pay decline to a top of 4.9
per cent, of which 4 per cent is
paid by the employer and .9 of
1 per cent by the employe.
Of the state’s 4,300 employers,
approximately 3,400 are eligible
for the variable tax rate.
The tax rates which go into ef
fect Saturday will remain in ef
fect only through the last quarter
of this year. New tax rates will
be issued to each business in the
state prior to Jan. 1.
This new rate will continue in
effect all through 1961.
Million New Yorkers
Give Eisenhower
Tremendous Ovation
NEW YORK, OP) — Crowds of
one million cheering, waving New
Yorkers gave President Eisen
hower one of his greatest ova
tions when he departed for Wash
ington after a round of talks with
various world leaders.
The President stood in his open
limousine and acknowledged the
cheers and applause yesterday by
waving his arms and giving the
victory sign.
His smile was broad as he re
ceived the plaudits from the
crowds standing six and seven
deep on some streets. Police said
many had waited hours to get a
glimpse of the President.
A blizzard of confetti and
shredded telephone books nearly
engulfed his car at several points
as the motorcade rolled slowly
from the Waldorf-Astoria Hotel to
his plane at Newark Airport in
New Jersey.
Gas Well, Struck In
Kenai, May Be One
Of World's Largest
ANCHORAGE, GT> — Halbouty
Alaska Oil Co. has struck what
is believed to be the largest gas
well in Alaska on its location
four miles north of Sterling. The
well site is about 56 miles south
of Anchorage.
The discovery lead Thomas E.
Kelly, Halbouty’s Alaskan opera
tions manager, to say that the
Kenai Peninsula might be “one
of the world’s greatest natural
gas basins.”
Michel T. Halbouty of Houston,
Tex., released information about
the well, stating it produced at
an open flow rate of about 80
million cubic feet of dry gas daily
during tests last weekend.
K Willing, If
Ike Is Willing.
For Meeting
By LEWIS GULICK
NEW YORK, !/Pi — Khrushchev
says he’s willing to be locked up
in a room with President Eisen
hower until white smoke — the
signal of agreements—floats out
of the chimney.
The atheistic Soviet premier
quickly snapped up this college
of cardinals idea when it was sug
gested last night. "Although I am
not a Catholic, I am familiar with
the procedure, and I agree,” the
bouncy Khrushchev told his host
of the evening, Uruguayan U.N.
delegate Eduardo Victor Haedo,
who initially broached the scheme.
The Uruguayan referred to the
Roman Catholic Church’s method
of picking its pope. The cardinals
| are locked inside the Vatican for
their deliberations. No until white
smoke pours from the chimney of
their stove does the outside world
know they have agreed on a new
j pope.
j Prospects of an Eisenhower
Khrushchev get-together actual
I ly seemed more remote than ever.
I Khrushchev, blaming Eisenhower
I for the collapse of their 1959
! Camp David harmony, made plain
i he would not move first for an
j other meeting. Eisenhower left
town determined not to see
j Khrushchev until the Soviet lead
I er changes his tune.
Khrushchev did assure news
I men that if the United Nations
| isn’t revamped to his liking, "We
j won’t start a war — sleep in
j peace.”
i Nehru Throws Big
i “Dry” Party
NEW YORK, IdV-India’s Prime
Minister Jawaharlal Nehru threw
the biggest “summit” party in his
tory last night—and none of the
renowned speechmakers present
even made a speech.
In fact the leaders from more
than 30 countries, including a
score of national heads, didn’t
even toast each other. “We don’t
serve liquor,” explained an In
dian spokesman.
So the approximately 80 guests
sipped fruit punch and munched
on roast lamb and rice with lob
ster curry at the supper - buffet
Nehru served at his Hotel Carlyle
headquarters.
Soviet Premier Khrushchev and
his satellite leaders mixed gaily
with the delegates from around
the world who are attending the
United Nations session. So did
Cuba’s Fidel Castro, who was
dressed as usual.
Notably absent were Britain’s
Prime Minister MacMillan and
U.S. Secretary of State Herter,
who pleaded previous commit
ments.
Also absent were Yugoslav Pre
sident Tito and U.A.R. President
Nasser.
“No speeches. The atmosphere
was wonderful. The food was de
licous,” exclaimed Mrs. Golda
Meir, Israel’s foreign minister,
after the two-hour affair.
CASTRO RETURNS TO CUBA,
BUT SAYS HE WILL RETURN
NEW YORK, tP—Fidel Castro
left the Hotel Theresa today to
fly. back to Cuba. He said he
would return “soon.”
An aide said Castro meant
“probably in a few days.”
Castro conferred with Presi
dent Nasser of the United Arab
Republic for two hours.
j CLASS B BASKETBALL
TOURNEY TO BE HELD
IN NOME FEB. 16-18
! The B Class Basketball Tourna
ment will be held in Nome this
year for the first time, reported
Conrad Potter who returned Mon
day from a conference of West
ern Alaska educators at Paxson’s
Lodge.
The invitation was extended
and accepted, he stated, and the
date set was Feb. 16 through 18.
About one hundred persons are
expected to be here for the tour
nament, it is estimated. The teams
will be from Kodiak, Homer, Ke
nai, Seward and Eielson AFB.
There will also be three cheer
leaders for each team as well as
some guest referees.
It will require community ef
fort, stated Potter, for housing
and entertainment during the
tournament, but he felt confident
that it would be most successful.
Sourdough Bomb Scare
Delays PAA Plane At
Fairbanks Today
FAIRBANK, (iP)— A joking re
mark about a sourdough prepara
tion set of a bomb scare at Fair
banks International Airport this
morning and help up a south
bound Pan American Airways
flight for almost two hours.
One of the passengers boarded
the Whitehorse-bound plane car
rying a package containing sour
dough “starter,” a preparation
for making sourdough hotcakes.
She jokingly remarked that she
“hoped it didn’t blow up.”
The remark, overheard by a
stewardess, set off the scare. The
plane was unloaded and all bag
gage was checked.
International Airport Security
officers, State Police and officers
of the Federal Bureau of Investi
gation particpated in the investi
gation.
The plane, scheduled to leave at
7 a.m. for Whitehorse. Juneau and
Ketchikan, did not get off the
ground at Fairbanks until 9 a.m.
U.S. Pledges To Maintain
$35-An-Ounce Gold Price
WASHINGTON, 0Pt —Secretary
of the Treasury Robert B. Ander
son today pledged that the United
States will make no change in the
price of gold—$35 an ounce since
1934.
In an address prepared for the
annual meeting of the Interna
tional Montetary Fund, Anderson
said, “Our aim is to merit con
tinued confidence at home and
abroad.” He added, “We shall do
this by resolute adherence to
domestic economic and financial
policies which will maintain the
dollar at its existing gold parity
as a sound and reliable currency.”
While noting that foreign in
terests have purchased about $700
million of American gold so far
this year, he indicated belief that
this in no way reflects on con
fidence in the dollar.
$893,944 Contraband Gold
On U.S. Ship In Calcutta
CALCUTTA, India, OP) — After
imposing a fine of $560,000 for
contraband on the American
owned ship Ruth Everett, Cal
cutta Customs paid a surprise
visit to the vessel yesterday and
uncovered another 200 bars of
contraband gold. It was valued
at $75,384, making a total haul
of $893,944 in gold on the ship,
which reached Calcutta early last
month.
Test of Strength
At U.N. Assembly
Comes Tomorrow
UNITED NATIONS, N.Y., W—
Premier Khrushchev, smarting
under sharp defeats on two of his
major objectives, figured pro
minently today in critical huddles
of government chiefs in advance
of U.N. General Assembly show
down votes.
The Assembly’s 21-member
steering committee wrangled until
the early morning hours in a
meeting which resulted in set
backs for the Soviet premier on
the admission of Red China and
immediate debate on his charges
of Western “aggression” in the
Congo. He also failed to build
support for his efforts to under
mine the office of Secretary-Gen
eral Dag Hammarskjold.
As the Assembly policy debate
resumed, Khrushchev was in con
j ference with President Tito of
! Communist - ruled Yugoslavia at
I Soviet U.N. delegation headquar
ters. That was only one of a
whirl of high-level conferences.
US. Secretary of State Chris
tian Herter held a series of meet
ings with delegates of various na
tions in advance of a major West
ern reply to Khrushchev to be
delivered in the Assembly by
Prime Minister MacMillan of Brit
ain tomorrow afternoon.
The big test of relative strength
of the Soviet and Western sides
in the fateful debate will come
when the 96 - member Assembly
discusses in full session the
agenda items taken up in the long
overnight wrangle by the steering
committee. The world will watch
closely to determine just how
much strength either side has
picked up or lost.
[Four-Power Aviation
Talks Break Down
COPENHAGEN, Denmark, (*>
—A four-power aviation confer
ence that opened Sept. 12 broke
up today with an official admis
sion that there is widespread dis
agreement between the United
States and Scandinavia.
The conference was held at the
request of the U. S. government
following pressure from Ameri
can commercial airlines which
wanted to eliminate at least half
of the Scandinavian commercial
fligts to the United States.
Government delegates from the
United States, Sweden, Norway
and Denmark had taken part,
with representatives from major
airlines in all four countries sit
ting in as observers.
Failing to reach agreement, the
conference threw the whole issue
into the hands of the four govern
ments. Informed sources said it
would take “a long time” to
reach any agreement.
Stock Market Hit
By Selling Wave
NEW YORK, 1*1 — Renewed
selling pressure hit the stock mar
ket in mid-afternoon today, send
ing leading issues to new lows for
more than a year.
Declines ranged from $1 to $2
and in any number of cases much
more. Trading was heavy on the
fall. International Business Ma
chines plunged more than $5 to
$502.25 at one time.
The gold mining stocks declined
following a statement by Treasury
Secretary Anderson that the U.S.
will make no change in the $35
an-ounce price of gold.