™E NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS _
VOL. LXIII No. 11 NOME, ALASKA, FRIDAY, JANUARY 27, 1961_Per Copy 15?
U. S. Airmen
Released by Reds
Greeted by JFK
WASHINGTON W — Under
tight security wraps, the two
RB47 fliers released from Russian
imprisonment flew home to Am
erica today and got a hearty wel
come from President Kennedy
and their families.
Bareheaded in the cold, Ken
nedy greeted the fliers at nearby
Andrews Air Force Base but
passed up a chance to make a
public speech of welcome over
TV. No interviews with the men
were permitted for the time
being.
Pierre Salinger, presidential
press secretary, said this was be
cause the State Department did
not want to jeopardize prospects
of improving relations with Rus
sia.
Capts. John R. McKone, 28, and
Freeman B. Olmstead, 25, landed
at 11:58 a.m. after a seven-month
ordeal of imprisonment by the
Soviets.
Their wives had been waiting
here since yesterday to meet
them.
President Kennedy, who an
nounced the fliers’ release dra
matically two days ago, flew out
the 15 miles from the White
House to Andrews Air Force Base
to greet the homecomers. He went
by helicopter. And, as usual he
wore no hat on the field despite
the chill.
To further emphasize the na
tion’s interest on their return, the
President invited the two captains
and their wives to the White
House later in the day for coffee.
The men are the sole known
survivors of the American plane,
whose destruction has been the
nub of a dispute between Wash
ington and Moscow. The Russians
contended it was over their ter
ritory on a spy mission followup
of the U2 incident. This country
took the stand it was shot down
over international waters while
on an innocent magnetic mapping
operation.
The importance attached to
the men’s return was further em
phasized by the guest list for the
afternoon White House coffee ses
sion: Vice President Lyndon B.
Johnson, Sens. Andrew F. Schoe
pel and Frank Carlson, Kansas
Republicans and Rep. Floyd
Breeding, D - Kan., to represent
the state where the wives have
been living.
100 Tons of Steel Lay
Open Seven Offices
PORTLAND, Ore. UPi — One
minute it was a peaceful office
building. The next, 100 tons of
falling steel laid open seven of
fices with deafening roar.
Two men, who had been on the
second floor, found themselves
dazed on the first floor. Four
other persons were partly buried
under desks, filing cabinets and
plaster.
Gusty winds had blown over
two huge, prefabricated steel
bridge trusses, which had been
resting beside the Port of Port
land Office Building.
Only one person was hospital
ized when the trusses smashed
into the two-story building just
after lunch yesterday. She was
Nancy Healy, a secretary who
suffered broken ribs, cuts and
bruises as she was pinned undei
a desk.
Five other office workers suf
fered lesser injuries.
Bills Introduced
Today in Juneau
JUNEAU (/P — A resolution
calling for the construction by
Army Engineers of steel piling
breakwaters at the towns of
Unalakleet, Shaktoolik and Kot
zebue was introduced in the Sen
ate by Sen. Lester Bronson.
Legislation which would make
it illegal for employers and em
ployes to negotiate labor contracts
which include any preference in
hiring which discriminates against
Alaskan residents was introduced
in the Senate at the request of
Gov. Egan.
A resolution urging Congress
to approve legislation which
would direct the Treasury to pay
$70 per fine ounce for newly
mined domestic gold, and charge
the same price for gold to be
used for domestic, industrial, pro
fessional and artistic purposes
was introduced in the House.
Sen. George McNabb introduced
a bill in the Senate which would
levy a tax on 5 per cent on all
hotel room charges.
McNabb said the tax could be
used to put a floor under the
tourist promotion program.
Legislation providing for over
time pay at a rate of time and a
half for state employes was sub
mitted in the Senate.
The measure, which would not
apply to employes in supervisory,
professional and executive posi
tions, was submitted by Sen. John
B. Coghill, A1 Owen, Eben Hop
son, Howard C. Bradshaw and
Jack Weise.
An act granting powers of ex
ecutive clemency to the governor
of Alaska was introduced in the
House by the Rules Committee at
the administration’s request.
It would be unlawful to hire
persons to replace employes in
volved in a strike or a walkout
under the provisions of a bill in
troduced in the Senate.
The measure was entered by
Sens. George McNabb, A1 Owen,
Eben Hopson, Howard C. Brad
shaw and Lester Bronson.
FBI Reports $100,000
Stolen at San Francisco’s
International Airport
SAN FRANCISCO UP) — The
FBI said today a package contain
ing $100,000 was stolen from an
Australian Qantas Empire Air
ways safe at San Francisco Inter
national Airport.
Agent Bruce Banks said that the
money was taken by someone who
apparently knew the combination
of the safe.
The money, in large bills, was
enroute from Hong Kong to the
Crocker Anglo National Bank
here. The money arrived by
British Overseas Airways jet
liner after banking hours Wed
esday and was stored with the
Qantas office, the FBI said.
Cl23 CARGO PLANE CRASHES
AT NEWENHAM AF STATION
ANCHORAGE <#) — An Elmen
dorf-based Air Force Cl23 cargo
plane crashed while attempting a
landing at a remote site on the
Western Alaska Coast yesterday.
The Alaskan Air Command said
there were four crew members
aboard and all were injured, two
of them suffering broken noses.
The plane, coming in to Cape
Newenham Air Force Station,
crashed onto the ice-covered run
way and was virtually demolish
ed.
U. S. Navy Will
Escort Hi-Jacked
Portuguese Ship
SAN JAUN, Pureto Rico t'P* —
Capt. Henrique Galvao has ex
pressed readiness to accept a
U. S. Navy escort for the hi
jacked ship Santa Maria, the Navy
announced today.
The escort would be aimed at
protecting the Santa Maria
against any action by Portuguese
warships which have been put on
the trail of the Portuguese liner.
Rear Adm. Allen Smith, Com
mander of the Caribbean Sea
frontier, said the action to be
taken by the U. S. Navy will be
decided by higher authority in
Washington.
Galvao, in a message intercepted
in San Jaun said he was willing
to land his 558 passengers “near
South America” or at a west Afri
can point. But he said he was
giving preference to the idea of
landing them in Africa “with all
guarantees as political insur
gents.” This referred to his in
sistence on recognition as a politi
cal revolutionary acting against
the Salazar dictatorship in Port
ugal.
This word reached San Jaun
as the Santa Maria continued its
voyage into the Atlantic, with the
west African colony Angola as its
announced destination — but
still within striking distance of
the Brazilian Coast.
The ship was still on a course
to Angola and proceeding at 15
knots, a cruising speed for the
vessel.
Galvao said he was willing to
meet with U. S. authorities either
aboard his ship or at the port
where passengers would be dis
embarked. The passengers, in
cluding 42 Americans, have in
effect been prisoners since last
Sunday when Galvao and his band
of three score associates took over
the Santa Maria.
However, the Defense Depart
ment disclosed that some of the
American passengers sent a re
quest that they be transferred at
sea and reported Galvao is “will
ing to negotiate for the transfer.”
Air Defense Command
Reviewing Nation’s $8
Billion Defense Setup
PHOENIX, Ariz. UPi — About
70 high ranking officers of the
Air Defense Command are con
ducting a detailed review of the
nation’s $8 billion defense setup
during a three-day meeting here.
The system is expected to be
in full operation this year, Lt.
Gen. Joseph H. Atkinson, Com
mander of the ADC Headquarters
at Colorado Springs, Colo., told
a news conference.
It includes the latest in elec
tronic eyes and ears to warn of
enemy attack, 90 squadrons of
late model jets from the Air
Force and National Guard, and
the Bomarc Missile, he said.
Atkinson, the ranking officer
among the 24 generals attending,
said it will cost $3 billion a year
to operate.
The sessions, which end Satur
day, are closed to newsmen.
TOO MUCH SNOW CANCELS
"OPERATION IGLOO"
ALLENTOWN, Pa. UP> — The
Lehigh Boy Scout Council can
celed “Operation Igloo,” a cold
weather survival program sched
uled yesterday in the Pocono
Mountains for this weekend, be
cause of heavy snow.
I
Borough Hearing Set
For Saturday Afternoon
Tomorrow afternoon at 1:30
p. m. in the Court Room of the
Federal Bldg, there will be an-'
other hearing on boroughs.
This hearing is important to
every resident of this area and
should have citizen participa
tion because the borough is to
be an intermediary governing
and taxing unit. Organized bor
oughs are needed in the more
heavily populated areas of the
state but whether or not
Northern Alaska is ready for
this must be determined by the
people who live here.
Unless people in this area
avail themselves of meetings
such as this they may find them
selves with an unwieldly tax
levying and frustrating govern
ing unit which they cannot
understand. At present Alaska's
local government framework is
free of the legal and political
barriers found elsewhere in the
neighboring states. but an
awareness of what is going on
requires the attention of all
citizens, NOW, as the matter
comes before the Legislature.
The court room should be
i filled to capacity tomorrow.
Audit Committee
Unable to Find
Airport Funds
JUNEAU, UP>—The chairman of
the Legislative Audit Committee
said today the agency was unable
to find the $2 million airport
construction revolving fund in an
audit of the Division of Aviation’s
records.
Sen. John Coghill, R-Nenana,
hastened to add that there was
no inference of wrongdoing in
his statement. He said the divi
sion’s records for the fiscal year
ending last June 30 were “inau
ditable” because of poor account
ing practices.
Gov. Egan said the division’s
books were in order.
Egan’s stand was backed by O.
S. Douglas of the accounting and
auditing firm of Arthur Ander
sen & Co., Seattle, which has
been working on a revision of the
Aviation Division’s accounting
system since early 1959.
Coghill said leglisative audit
ors found that $75,000 in airport
construction funds appropriated
for fiscal 1960 had been illegally
transferred back to the 1959 fis
cal year.
“It brought up the question of
where the airport construction
revolving fund went,” Coghill
said. “It is probably in the books
someplace, but we can’t find it.
We plan to keep looking.
House Speaker Warren Taylor
and Rep. Donald Harris, both
members of the Audit Committee,
said the question of funds audi
tors were unable to locate had
never been brought up in the
committee.
The Legislative Audit Commit
tee’s printed printed report, sub
mitted to members of the Legis
lature and to the administration,
does not mention the airport con
struction revolving fund other
than to point out the illegal trans
fer of the $75,000.
Douglas challenged the Audit
Committee’s report that the Avi
tion Division’s books were in
auditable.
He said the federal govern
ment has had an auditor em
ployed solely to go over the divi
sion’s books for the past seven
years.
Committees Face
Growing Stacks
Of Borough Bills
By Ward Sims
Associated Press Staff Writer
JUNEAU UP) — The chairmen
of the Senate and House Local
Government Committees, faced a
growing stack of borough bills,
said today they’ll pool their com
mittee talent in considering all
borough legislation.
Rep. Harold Hansen of Cordova,
Chairman of the House group, and
Sen. Howard Bradshaw of Sitka,
head of the Senate Committee,
said, however, that they will not
consider any borough bills until
Feb. 8.
“We are hoping,” Bradshaw
said, “that by that date all bor
ough legislation that is going
to be introduced during this ses
sion will be in.
“The House and the Senate
committees will hold joint ses
sions whenever a borough bill is
going to be considered. We’re
hoping we can save a lot of dupli
cation of effort that way.”
Bradshaw said he and Hansen
had agreed to a public hearing
to be held jointly by the two
committees at 8 p. m. on Feb. 10
in the chambers of the State Sen
ate.
Four Bills Already Introduced
Four bills to set up a borough
system of local government had
already been introduced as the
Legislature went into its fifth
day of sessions this morning.
Sen. John McNees has sponsored
two borough bills, one providing
for the creation and operation of
organized boroughs and one deal
ing with unorganized boroughs.
Sen. Brad Phillips also has a
borough bill before the Legisla
ture, but the big measure is
House Bill 7, introduced at the
request of Gov. Egan.
In all three bills dealing with
organized boroughs, only the
people would have the right to
initiate a move for incorporation
of an area into such a borough.
Egan proposes that 5 per cent
of the residents of the area re
quest incorporation; Phillips sug
gests 20 per cent of the voters
who cast ballots in the area in
the preceding general election;
and McNees recommends that the
signatures of 200 persons be re
quired.
The Phillips and Egan bills both
recommend that all areas of the
state not included within organ
ized boroughs constitute an un
organized borough.
McNees’ unorganized borough
bill would create such units of
local government with boundaries
identical to those of the House
Districts as determined by the
Legislature reapportionment
scheduled for this year.
Relatively Quiet Day
It was a relatively quiet day
for the Legislature yesterday, with
the introduction of bills and com
mittee meetings taking up most
of the time of lawmakers.
In the House, Rep. James Par
sons (R-Anchorage), who just got
into Juneau on Wednesday after
noon, was a bit late getting to
his desk in the lower chamber
yesterday morning.
The red-faced Republican ex
plained he had overslept. It seems
he forgot to switch his clock from
Anchorage to Juneau time. He was
operating two hours behind every
one else in the capital.