T
OU)EST NEWSPAPER IN ALASKA —MEMBER ASSOCIATED PEESS
VOL. LXI No. 3 • NOME, ALASKA, WEDNESDAY, JANUARY 7, 1959 _Per Copy—
Governor Egan
Undergoes 4-Hoiir
Major Surgery
JUNEAU, (/P> — Governor Wil
liam A. Egan was reported making
satisfactory progress today in his
recovery from major surgery.
His doctor said the 44-year-old
Democratic chief executive spent
a good night and was resting
comfortably today.
Egan underwent a four-hour
gall bladder operation yesterday
at St. Ann’s Hospital here.
There still was no definite word
when the Governor would be re
leased from the hospital, or how
long it would be before he could
resume a full work schedule.
However, aides were hopeful
that Egan would be able to be at
his desk within about three weeks.
Egan entered the hospital last
Saturday, four hours after he had
taken the oath as the first Gov
ernor of the 49th State.
BATISTA ASKS FOR ASYLUM
WASHINGTON, UP) — Fulgen
cio Batista, the deposed president
of Cuba, would .have to prove he
was in physical danger before
the United States would grant him
asylum.
That policy was outlined by At
torney General Rogers comment
ing on reports that Batista has
asked indirectly for asylum.
District Courts to
Have Jurisdiction
For Tin •ee Years
JUNEAU, !JPi — The four United
States District Courts in Alaska
when Statehood was proclaimed
have full jurisdiction over both
state and federal cases, a Justice
Department official said yester
day.
With the statehood proclama
tion, said Assistant United States
Attorney General Malcolm Wilkie,
the four became state courts ra
ther than full federal district
courts.
However, he said, they remain
under operation of federal offi
cials with power to act in federal
matters until such time as Alas
ka’s state judiciary has been
formed.
At that time, one United States
District Court for Alaska will be
created and the present courts
would cease to exist.
The Statehood Act signed last
July put a three-year limitation
on the temporary federal-state
court status of the districts at
Anchorage, Fairbanks, Nome and
Juneau.
Wilkie’s views were expressed
at a meeting in U. S. District Court
here with officials of the Alaska
Bar Association and officials of
Governor William Egan’s admin
istration.
Blood Pressures Run High
At Opening 86th U.S. Congress
WASHINGTON, (IPI — The new
86th Congress convened today al
ready torn by wrangling over Re
publican leadership posts and the
ground rules for a looming new
battle on civil rights.
The bang of gavels in Senate
and House chambers at noon
launched the session before packed
galleries gay with the bright
dresses of admiring women folk
of the members.
But beneath the normal hearts
and flowers atmosphere, collec
tive blood pressures were seldom
higher for an opening session.
Senate Republicans had just
come from a party caucus where
the old guard put down an insur
gent rebellion and named Senator
Dirksen, a 1952 supporter of the
late Senator Robert A. Taft of
Ohio, as party floor leader.
House Republicans were split
right down the middle as the re
sult of a scrap Tuesday that saw
Representative Joseph Martin
ousted as party leader after 20
years at the helm. Named to re
place him was Representative
Charles Halleck.
And senators of both parties
were taking sides for a possibly
prolonged battle over that body’s
rules. The issue: whether to make
it easier to cut off filibusters —
the endless debate that backers Of
more federal protection for Negro
voting rights have contended is
the main weapon used to defeat
such legislation.
Only House Democrats, tightly
under control of Speaker Sam
Rayburn, were without any rag
ing feuds for the moment.
Rayburn, who has served as
speaker longer than any other
man, was chosen again at a party
caucus Tuesday. It put him in the
presiding chair of the House for a
ninth two-year term.
Senator Lyndon Johnson of
Texas was re-elected Senate Dem
ocratic leader at a party meeting
just before the Senate convened.
He has held the post since 1953.
Dirksen won the Senate GOP
leadership over Senator John
Sherman Cooper of Kentucky, and
Senator Thomas Kuchel of Cali
fornia was chosen whip, or assist
ant floor- leader.
The pre-Congress jockeying
overshdowed the formal swearing
in ceremonies for the 436 House
members and the 36 Senators elec
ted or re-elected to the 86th Con
gress. Many relatives and friends
of the new members were on hand
for the ceremonies.
With the addition of two sena
tors and a House member from
Alaska, the 86th became the larg
est Congress in history.
Democrats hold overwhelming
control of both houses, 233-153 in
the House, and 64-34 in the Senate.
President Eisenhower will de
liver his State of the Union mes
sage in person Friday, and will
send a 77-billon-dollar balanced
budget to Congress on January 19.
Meantime, the Congress will go
ahead with the routine of appoint
ing and organizing committees
and otherwise preparing to handle
a flood of proposed legislation.
Gruening Wins
Four - Year Term;
Bartlett Draws Two
Special to the Nome Nugget
WASHINGTON, UP) — Alaska
gained full voice in national af
fairs with the seating of its first
voting delegation to Congress. Sen
ators Bartlett and Gruening took
the oaths of office simultaneous
ly at 12:39 p.m. as other senators
stood and applauded. Representa
tive Ralph Rivers became a mem
ber of the House of Representa
tives. Then in drawing of slips of
paper to decide the length of
their terms, Senator Gruening
drew first and won a term of four
years, ending January 2, 1963;
Bartlett drew second and won a
term of two years, ending anuary
2, 1961.
Gruening Wins
First Draw
By FRANK W. VAILLE
Associated Press Special Service
WASHINGTON, (IP) — A small
wooden box that hasn’t been used
in 47 years, played a part today
in the final act of seating Alaska’s
first voting delegation in Congress.
The box has gathered dust in a
Senate storeroom since 1912, when
it was last used in the seating of
senators from the then-new states
of Arizona and New Mexico.
Gruening, appointive governor
of Alaska from 1939 until 1953,
won the right at a coin-flipping
ceremony in his office yesterday
to make the first draw.
As set up by Senate officials,
there were three slips. Slip No. 1
was for a six-year term, No. 2 for
a two-year term, and No. 3 for
a four-year term.
While Bartlett missed out at
yesterday’s initial coin-flip on the
right to make the first draw, he
did gain the designation of Alas
ka’s senior senator when the coin
was lofted again to determine
which should have the designa
tion.
Representative Ralph J. Rivers
of Fairbanks became the 436th
member of the House.
This increase will be temporary,
however, and membership will re
vert to the traditional 435 with
the 1960 reapportionment.
Striking Pilots Turn Down
Offer To Call In Meany
For Arbitration Help
Washington, up> — American
Airlines said today the head of
the pilots union had turned down
a proposal that AFL-CIO presi
dent George Meany arbitrate a
strike that has grounded its planes
since December 20.
C. R. Smith, president of Amer
ican, said he made the recommen
dation last Saturday, but was re
buffed by Clarence Sayen, pres
ident of the striking Air Line Pi
lots Association.
Smith said he had suggested
that Meany’s decisions be binding
on the company and the pilots.
Sayen, he continued, termed the
proposal impractical “and has
consistently neglected to discuss
it since that time.”
Under the proposal the pilots
would return to work while Meany
considered the wage-hour issues.
Sen. Bartlett Fights Internal Revenue
Ruling That Federal Cost - of - Living
Allowance Taxable Under Statehood
WASHINGTON, UPl — Wholesale
transfers and resignations among
federal employes in Alaska were
predicted by Senator Bob Bartlett
today unless a controversial In
ternal Revenue Service ruling is
reversed.
The IRS recently held that cost
of-living allowances became tax
able with Statehood.
In a letter to Dan Latham, IRS
commissioner, Bartlett said eco
nomic factors would cause an up
heaval among Alaskan federal
workers.
The ruling was based on an in
terpretation by IRS that Alaska
is now a part of the continental
United States, thereby cancelling
the exemption provided on 25 per
cent cost-of-living allowances
paid federal employes outside the
continental United States.
The added tax resulting from
the ruling would reduce by some
$46 a month the take-home pay of
a single man with an $8,000 base
pay.
Bartlett asked Latham to meet
with members of the Alaska Con
gressional delegation to discuss
the matter.
He cited a recent ruling by the
comptroller general holding that
Alaska’s admission had not modi
fied the common understanding
of the continental United States as
the 48 states . and the District of
Columbia.
Bartlett said there was need for
a uniform policy in interpretation
of the term and expressed hope
“that the differences might be re
conciled in favor of continuation
of the tax exemption.”
He noted also that the law pro
viding for payment of such allow
ances refers to geographic location
by using the words “outside the
continental United States or in
Alaska.”
“It is evident, I believe, that an
interpretation of the above quo
tation from the law clearly dem
onstrates that the political status
of Alaska is not a factor in the
application of this law,” Bartlett
said, “and it should not be con
sidered a factor in any decision
relating to the tax status of the
cost-of-living allowance.”
Legislative Council
To Hold Hearings
Here This Week
Henry J. Camerot, Executive
Director of the Alaska Legislative
Council, who was due here Thurs
day, for sub-committee hearings
has had to cancel his trip to Nome
due to inclement weather at
Juneau.
The hearings will proceed how
ever, with John McNees, Senate
member of the Legislative Coun
cil, presiding. It is requested that
all interested in making an ap
pearance before the sub-commit
tee do so in writing, but oral pre
sentations to supplement written
testimony will be heard.
The hearings are to take place
in the Grand Jury Room on the
second floor of the new Federal
Building. The opening session will
be held on Thursday, January 8,
from 1 to 5 p.m. An evening ses
sion from 7 until 9 will be sched
uled for any indicating that they
will be unable to attend the Thurs
day hearing or the Friday morning
hearing, 9 until 12 noon.
Any subject of interest to the
local area of statewide concern
may be presented. The Alaska
Legislative Council study on
Workmen’s Compensation, and the
reorganization of the Legislative
Branch of the state government
are available from the local Coun-!
cil members, James von der Heydt i
and John McNees. In addition the i
Summary of the Reorganization
of the Executive Branch prepared
by the Public Administration
Service is also available.
It is urged that those desiring
to be heard signify their inten
tion immediately to the sub-corn- J
mittee members.
Castro Eschews
Formal Relations
With Communists
HAVANA, Of) — Fidel Castro,
Cuba’s revolutionary hero, indi
cated today the island’s provisional
government will steer clear of dip
lomatic relations with the Soviet
Union and other Communist na
tions.
The newspaper Diario de^ la Ma
rina quoted Castro as saying it
was his personal opinion Cuba
should not maintain relations with
any dictatorship.
The newspaper said Castro was
asked about relations with other
countries, and especially Soviet
Russia, as he continued his slow
trip to Havana. Communist prop
aganda has praised Castro and
attacked the Batista regime.
Castro also lashed out against
dictatorships in an interview tele
vised in Havana, saying they are
“a menace for America.”
Diario de la Marina also quoted
Castro as saying a rebel law con
fiscating all British goods in Cuba
still is on the boks but is subject
to ratification by the provisional
government.
Castro did not say this would
be done, however, explaining that
he did not wish to make state
ments indicating he was interfer
ing with the government of Pro
visional President Manuel Urrutia.
Castro ordered the confiscation
when Britain was selling arms to
the government of Fulgencio Ba
tista.
The cabinet of Urrutia worked
far into the night last night pre
paring a new Constitution for the
interim period until elections are
held in 18 to 24 months. The basic
law will replace the 1940 constitu
tion of Batista.