122 NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LIX No. 37_NOME, ALASKA, WEDNESDAY, MARCH 27, 1957 Per Copy—15<»
House Approves Bill to Raise Income
Tax to Help Reduce Territorial Deficit
By WILLIAM J. TOBIN
JUNEAU, UP) — By a 17-7 vote,
the Territorial House approved
yesterday a bill calling for an
income tax equal to 15 per cent
of an individual’s federal tax.
The House also moved to raise
corporation income taxes to a
figure equal to 25 per cent of
the federal tax returns.
Both individual and corpora
tion taxes currently are 12Vfc per
cent of the federal taxes.
Four .Democrats joined the
three House Republicans in oppo
sition to the-bill, which now goes
to the Senate — where the bill
is expected to get approval after
a strong fight.
The bill was introduced Mon
day by the House Ways and Means
Committee as a companion meas
ure to the 1957-59 appropriation.
It is designed to help reduce the
anticipated $5 million deficit in
the budget.
The chairman of the committee,
Ken Johnson (D-Anchorage) voted !
against the bill.
He was joined by Democrats
Warren Taylor, Dora Sweeney
and James von der Heydt, and
Republicans John Coghill, Clin
ton Gray and Frank Johnson.
Earlier, the House had voted
by the same margin to kill a pro
posed three per cent sales tax for
the territory.
In a bitter debate on the House J
'floor, Johnson and Taylor ac
cused members of their party of
lacking courage to face the fact
that a sales tax was needed.
During the debate, Democratic
opponents of the bill said they
couldn’t vote for the tax regard
less of whether it was needed —
'because the party platform was
opposed to such a levy.
The House-approved bill for a
territory-wide property tax has
been continued in the Senate.
The bill, amended in the Sen
ate to a full one per cent fo as
sessed value, was referred to the
Judiciary Committee.
Wien’s Will Lease Plane
From Stateside Firm
WASHINGON, UP) — The
Civil Aeronautics Board Monday
granted Wien Alaska Airlines per
mission to lease a twin-engine
C-46 airplane from Aviation Corp.
of Seattle, which does business
as Westair Transport.
The lease is for six months at
$4,500 a month. Wien said the
plane was needed because of
modification of its own C46 air
craft, for use in scheduled passen
ger operations, which would re
quire withdrawal of the planes for
periods extending into the peak
of traffic season in Alaska.
. Statehood Hearing Committees Study
Future Effects of Presidential Powers
By FRANK W. VAILLE
WASHINGTON, UP)—'The House
Territories Subcommittee sched
uled another attempt today to
wind up formal hearings on bills
to give Alaska statehood.
Chairman O’Brien (D - N Y ),
now hoping to have the bill in
final form by April 6, tentatively
called his subcommittee together
after a meeting of the full House
Interior Committee.
On the statehood scene yester
day, the Senate Territories Sub
committee tackled the Adminis
tration’s statehood proposal and
promptly forgot its announced in
tention to wind up formal hear
ings in two days.
Sen. Jackson (D-Wash.), sub
committee chairman, said a fur
ther session will be held at an
undesignated time to clear up what
he described as the “many am
biguities” of the proposal.
Legal Status
He said the subcommittee
wants) (1) to study the need for
the authority which the proposal
would give the President to set
up military areas in less popu
lated areas of Alaska, and (2) to
clarify the legal status of persons
and private property in areas
where the President exercises this
withdrawal power.
The proposal, outlined by Asst.
Interior Secretary Hatfield Chil
son, would grant statehood to all
of the present Territory of Alaska
but give the President authority
north and west of the Porcupine,
Yukon and Kuskokwim Rivers.
Action Without Consent
Asked by Sen. Anderson (D
N. M.) what could be done under
this authority which could not
be done under other powers al
ready held by the President, Gen.
Nathan P. Twining, named yes
terday as chairman of the joint
chiefs of staff, replied “nothing.”
Robert Dechert, general coun
sel for the Defense Department,
however, said the authority would
permit the federal government to
act “without consent of action” by
the new state.
Pressed for examples as to how
the proposed authority might be
used, Dechert said it coyld be
used to evacuate — except in |
the case of municipalities — to
•evacuate an area, to set aside a
potential hydroelectric power
site or to reserve for future de-1
velopment a potential uranium
field.
Continued Mining
Under questioning by Sen. Bar
rett (R-Wyo.), Chilson said it was
the intention of the Administra
tion’s proposal to permit contin
ued mining in a reservation area
unless military requirements
would necessitate complete evac
uation. He said the department
would have no objection to this
right being spelled out affirma
tively in the bill.
Also under questioning by
Barrett, Chilson agreed present
language of the proposal might
preclude the new state from levy
ing a tax or enacting laws appli
cable to an area after it was put
in reservation status.
The proposal would provide that
in the event of a withdrawal for
military purposes, the »federal
government would assume exclu
sive jurisdiction over an area but
local laws in effect at the time
would be eforced by the federal
government.
Barrett said, he believes pro
vision should be made to permit
the new state to enact laws appli
cable to a reservation area even
after its creation so long as the
laws would not be inconsistent
1 with the military program.
| Nhmes Filed for City
I Posts for Tuesday Election
I City elections will be held next
Tuesday, and the following had
j filed for office at press time:
j For Mayor: Steffen Andersen.
i For School Board: George
! Bayer.
Utility Board: Nels Swanberg
Jr., 3-year term; Bill Haley, 5-year
j term, Stan Morgan, 5-year term.
! City Treasurer: Bill Tuttle,
j City Council: Pete Reader, Ros
! coe Wilke, A. Bohrer, Paul Man
I deville, Don Hunger-ford.
Senate Gives
Rough Treatment
To Bonding Bills
By WILLIAM J. TOBIN
JUNEAU, UR — The Territorial
Senate gave rough treatment yes
terday to four House-approved
bills to authorize general obli
gation bonds for four separate
construction programs.
One of the bills, for a $700,000
bond issue to finance construc
tion of a school at Bethel, was
killed. Action on the other three
bills was delayed after passage by
parliamentary maneuvers.
The other three bills are for
construction at the University of
Alaska, for National Guard ar
mories and for hospital additions.
Two Fairbanks Republicans,
Mike Stepovich and John Butro
vich, led the fight against the
bonding programs.
Both pointed to the high in
terest charges that will have to
be paid on the bonds.
Said Butrovich:
“There is no justification for
a single one of these bills. They
. are desirable — yes. But neces
sary — no.”
He said the territory simply
could not afford the cost of the
programs.
The proposed bond issue to raise
$1,827,000 for additional construc
tion at the University of Alaska
narrowly passed the Senate, and
the 9-7 vote is not final.
The bill for a bond issue of
$1,173,000 for the construction of
I National Guard armories in 10
Alaska cities passed the Senate
on two votes of 12-4.
The second rolloall came after
Sen. James Nolan (D-Wrangell)
filed notice of reconsideration.
But the Senate voted to suspend
its rules in that case and vote
again immediately. Nolan changed
his vote to “no,” but Sen. Frank
Barr (D-Fairbanks) changed his
vote to “yes.”
—
ONE WEEK LEFT TO
GUESS ON NENANA ICE
CLASSIC BREAKUP
There is just one week left to
choose the break-up time at Ne
nana where the annual Nenana
Ice Classis is held each year.
The breaking up of the river
ice, which is witnessed by the
whole town of Nenana, means to
Alaskans that spring has come
and navigation is open fo an
other busy season.
Guesses on this annual event
are available with Keith Hedreen.
Former French Premier
Dead at Age 84
i
LYON, FRANCE, LD — Edouard
' Herriot, three times premier of
| France and honorary president
; of the National Assembly, died
: yesterday after a long illness. He
{ was 84.
‘CITY OF NOME IS BIG
BUSINESS’ SAYS MAYOR
AT CHAMBER MEETING
By RUTH McLEAN
“It would help the Council and
Mayor to administer the business
of the city if the people of Nome
and the civic groups would attend
the council meetings and express
their views. All council meetings
are open to the public. Ideas for
the improvement of our commu
nity should be submitted in
writing.”
This was one of the comments
made by Mayor Steve Andersen
yesterday at the regular weekly
meeting of the NWA Chamber of
Commerce. He was guest spaker
at the luncheon and reviewed the
activities of the Council and offi
cers, both elected and appointed.
Pointing out that the City of
Nome is a big business with four
million dollars in assets, Mayor
Andersen expressed the opinion
that such a business could be run
Judge Recommends
Military Use Own Courts
For Criminal Cases
FAIRBANKS, UP) — A Federal
Court judge yesterday said he
thinks military officials should
use their own courts instead of
his for trying criminal cases with
in their jurisdiction.
Judge Vernon D. Forbes made
the comment after a defense at
torney had said a man convicted
of sodomy should have been tried
in military court.
“I prefer to have the military
discipline their own,” the judge
replied. “I would be very anxious
to turn this case or any case over
to the military. I regret very much
that this court did assume juris
diction. The military has such
wonderful facilities for handling
such matters.”
District Atty. George Yeager
replied the military seemed to
prefer the present arrangemnt
and the judge said:
“I don’t know if I want this
court subject to the military’s de
sires.”
in a more efficient and economical
manner by a city manager. Cities
with a much smaller population
have found that a city manager
will save the community more
than his salary. He is not dis
tracted by the demands of a busi
ness of his own, as the mayor and
council members are; but devotes
his full time to the management
of the city.
The next years will bring many
changes to our community, the
Mayor stated. Among the major
projects will be the water and
sewer system anticipated in two
years, and a new high school be
fore too many years. A new air
terminal could be handled with
municipal bonds, if enough air
lines and businesses are interested.
Because the present telephone
service is deplorable, the city
may have to go into a telephone
system, he stated. Also it is be
coming imperative that the city
be re-surveyed, especially the
boundaries and the streets. Bet
ter housing, perhaps with FHA,
will be one of the goals for the
immediate future.
Because of such important is
sues, the Chamber members were
urged to vote at the city elections
next Tuesday. Chamber President
Jim Walsh reminded the members
that the city faces many grave
problems, which are increasing
all the time, and that they
should be certain to vote.
Mayor Andersen’s timely report
was the first of a series of special
programs to be presented by the
•newly appointed program com
mittee under the chairmnaship of
Larry Galvin.
Other business before the
Chamber included the temporary
change in meeting days to Mon
days. Russell Hermann com
mented briefly on the tax meas
ures now before the Territorial
Legislature.
Guests at the luncheon meeting
were Mayor Andersen, Roy Sny
der from CAA, and Duane Oyloe,
Burroughs representative.
Blizzard- Struck Ranchers Bitter
Over Damage and No Drought Relief
(By The Associated Press)
The death toll stands at 36 in the
spring snow storm which hit the
western plains over the weekend
and in the area it hit hardest
there was a feeling today it had
brought only limited drought
relief.
New Mexico stockmen said they
would have been better off with
out the snow. Some lost their en
tire herds in the mountainous
drifts.
The six-state high plains area
which got up to 14 inches of snow
and drifts as high as 30 feet still
was digging out today. But trains
were starting to move again and
at least the main roads were open,
Thirteen persons in three cars
and a truck were uncovered last
night by a road crew on U. S. 50
near Garden City, Kan. They had
been snowbound three days but
all were reported in good condi
tion. They had been carrying
some food.
The six-state area where the
storm was a full-blown blizzard
— southwest Nebraska, western
Kansas, eastern Colorado, north
east New Mexico and the Okla
homa and Texas panhandles —
makes up a large part of the plains
area hard hit by five years of
drought.
But the blizzard’s 70 and 80
mile winds scoured much of the
crop and grazing land almost bare
as they piled the snow up in high
drifts. On the approaches to the
Colorado foothills there was more
dust on the air than snow.
Crop experts in Kansas, Okla
homa, Nebraska and Texas said
the snowfall brightened the
drought picture but there was not
near enough moisture to break it.
New Mexico ranchers were bit
ter. They organized a campaign
to get federal disaster relief.
Oklahoma reported heavy dam
age to peach, pear and plum trees
which were in full bloom when
the blizzard hit.