m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVIII No. 82 _NOME, ALASKA, WEDNESDAY, JULY 11, 1956_ Per Copy—15#
$2.9 Billion Worth of
Surplus Farm Products
Disposed of Since 1954
WASHINGTON, Iffi—President
Eisenhower reported today that
$2,953,000,000 of the government
owned surplus farm products
have been disposed of—mostly
abroad—under the Agricultural
Trade Development Act of 1954.
He said in a semi-annual report
to Congress that nearly one half—
or $1,264,800,000—was contracted
for sale or donation during the
first half of this year.
Hot Campaign
Looms Between
Ike and Congress
By the Associated Press
A hot campaign fight between
President Eisenhower and the
Democratic majority in Congress
loomed today after the revelation
that Eisenhower definitely is a
candidate for re-election.
Democrats generally professed
no surprise at the news that Eis
enhower is a candidate and little
alarm at his reported criticism of
their handling of administration
legislation.
The President was described as
“irritated” yesterday at Congres
sional cuts in his foreign aid pro
gram. The report came from Sen.
Bridges (R-NH>, who attended the
presidential conference at which
Eisenhower reaffirmed his intent
to run again.
Sen. Humphrey (D-Minni said
today Democrats are prepared to
prove that the embattled foreign
aid measure has had little assis
tance from Republican members
of Congress.
And Sen. Sparkman of Ala
bama, the 1952 Democratic vice
presidential candidate, made a
representative Democratic reply
to the news of Eisenhower's can
didacy yesterday: "What com
ment is there to make? He’s been
running all along.”
As expected, Republicans were
jubilant at the news’.
GOP National Chairman Leon
ard Hall said, “People in every
walk of life are rejoicing."
Romanian President’s
Condition Worsening
VIENNA, UPI—Radio Bucharest
reported a worsening in the con
dition of Romanian President Pe
tru Groza, 71, who suffered two
heart attacks in May.
Groza has long been a figure
head in his country’s Communist
government.
Caravan of Trailers
Will Drive to Alaska
GREAT FALLS, Mont., WV-A
trailer coach caravan is assem
bling in Great Falls for a six
week drive to Alaska and- back.
The trailers are . coming from
widely separated points in the
south, midwest and Pacific coast.
The caravan, expected to in
clude 20 to 25 trailers, will leave
Sunday. The itinerary includes
Banff, Edmonton, White Horse,
Fairbanks, Anchorage, Seward,
and Haines Junction.
Caravan members will hold
open house at each overnight
stop.
Morningside's
Profits Twice
Amount Reported
Federal Accountants
Urge Careful Review
By Internal Revenue
WASHINGTON, WV-The feder
al General Accounting Office re
ported Tuesday that the profits
of Morningside Hospital at Port
land, Ore., were twice the amount
reported by the firm’s owner and
president.
The report also said that Wayne
W. Coe, owner of the hospital
that cares for Alaskan mental pa
tients, had diverted substantial
sums from company accounts for
the personal use of himself and
his family.
No violations of the law were
charged in the report, but U. S.
Comptroller General Joseph
Campbell suggested that the In
ternal Revenue Bureau “make a
careful review of the federal in
come tax returns of the sanitari
um company and its president."
Campbell said the audit showed
a number of instances when ex
penditures of a capital nature and
personal expenses of the com
pany president had been charged
as business expenses.
The House Interior Committee
ordered the GAO accounting last
July after approving the Alaska
Mental Health Bill of Rep. Edith
Green (D-Ore>.
She demanded the audit after
hearings brought out that in more
than 50 years of operating under
government contracts, the com
pany’? books had never been aud
ited by the federal government.
Coe said there was nothing
wrong with the hospital's opera
tion and that the financial matters
in question were “accepted prac
tice and general throughout the
country.”
FBI Steps In
To Seek Kidnaper
Of Weinberger Tot
WESTBURY, N.Y., Ud—Power
ful FBI forces tackled the baf
fling case of kidnaped Peter
Weinberger today.
Under federal law the FBI had
to hold off officially for seven
days after the kidnaping. Gov
ernment agents could have moved
into the case earlier if they nad
evidence the victim was spirited
across state borders. After seven
days the law presumes such a
crossing.
One week ago a bold kidnaper
snatched the tiny boy from his
carriage in the patio of Mr. and
Mrs. Morris Wein'berger’s ranch
style home here. Weinberger, 48,'
is a well-to-do wholesale drug
salesman.
The kidnaper grabbed the 5
week-old child in the middle of
the afternoon.
He left a neatly penciled note
demanding $2,000 ransom. Later,
a man believed to be the kidnaper
telephoned the family and raised
the demand to $5,000.
Police have found no trace of
kidnaper or child. He needed a
special formula of milk and a
vitamin compound to survive.
EXTRA $200,000 FOR
NOME POST OFFICE
WINS APPROVAL
Mayor Steffen Andersen is in
receipt of a letter from Del. E. L.
Bartlett in Washington, D. C.,
dated July 6, 1956. It states:
“Today the House Appropria
tions Committee reported the
Supplemental Appropriation Bill
for the 1957 fiscal year to the
House. The committee approved
the appropriation of $200,000 for
the Nome post office and court
house to supplement last year’s
appropriation of $1,100,000 to en
able the General Services Admin
istration to accept the low bid.
“This is, of course, a major step
in the right direction. I will keep
you advised on this as the bill
progresses through the Congress.”
Alaska Man Claims
‘Miraculous Cure’
At Lourdes Shrine
(The Juneau Independent)
A “miraculous cure” has been
experienced by an Alaska man at
the Shrine to the Blessed Virgin
Mary at Lourdes, France, accord
ing to word received by his father
in Ketchikan.
Robert Gore, who visited the
shrine with his mother, Mrs. Les
ter O. Gore, was relieved of a
blood vessel cluster on his brain,
he reported.
The shrine was established af
ter the peasant girl Bernadette
reported the Blessed Virgin ap
peared to her there.
Russia Claims
7 U.S. Violations of
Soviet Air Space
WASHINGTON, W>—Pending a
further study, U.S. officials re
mained silent today on a Russian
protest that American military
aircraft flew over seven Soviet
cities on three different days this
month.
Pentagon officials said they had
“no immediate comment or infor
mation” about what Russian Am
bassador Georgi N. Zarubin de
scribed as incidents of “gross vio
lation of Soviet air space.”
Zarubin handed a formal pro
test to Secretary of State Dulles
late yesterday. The State Depart
ment said it was a military mat
ter and promptly turned it over
to the Defense Department.
Zarubin told newsmen that the
flights took place July 4, 5, and 9.
A Moscow r?idio broadcast that
was heard in London said the
planes came from West Ger
many by way of Communist East
Germany and Poland. Moscow
said two of the planes were twin
engine medium bombers.
“The aforesaid violations of So
viet air space can only be assessed
as deliberate and carried out for
reconnaissance purposes,” the
broadcast quoted the protest note
as saying.
1*1 MARINE AIR WING
LEAVES KOREA FOR JAPAN
POHANG, Korea UP»—'The First
Marine Air Wing said a formal
farewell to Korea today and pre
pared to leave for its new base at
Iqakuni, Japan.
Boost for Alaska’s Tin Industry
Seen Nearer in Senate Committee
Passage of Bill to Raise Price
Seattle Depot Would
Buy Placer Tin
At $1.20 a Pound
SEATTLE, W—A tin price bill
approved yesterday by a Senate
committee was described by the
Post-Intelligencer finance editor
today as one that would give a
shot in the arm to tin mine activ
ity in Alaska and shipping activ
ity in Seattle.
Delegate E. L. fBob’ Bartlett of
Alaska thinks there is a good
chance the Senate will approve
the bill within two weeks and
send it to the House for final
action.
The measure, Senate Bill 2648,
was approved by the Committee
on Interior and Insular Affairs
without amendment.
If the bill becomes law, the
government would establish a
purchasing depot in Seattle to
buy domestic metallic tin at a
set price above the world price.
The world price ranges form 80
cents to $1.10 a pound. “Domestic”
means Alaskan tin, because there
is actually no tin mined else
where under the American flag.
The existence of large, rich tin
deposits in both lode mines and
placer fields on Alaska’s Seward
Peninsula has long been known.
However, competition from for
The Chamber of Commerce
and individuals who realise the
potential value of the passage
of this bill are directing wires
and messages to Senator Mur
ray today expressing their sen
timents on its importance.
Ralph Lomen, who has spent
much of his time in the past
decade toward the development
of this industry, and who prob
ably knows more about tin than
any other local resident, has
been in Washington D.C. this
past winter taking part in con
ferences. He urges Nome resi
dents as well as those in Teller
and other parts of Seward Pen
insula to lend their support by
urging passage of the bill.
Boeing 707 Jet
Flies Seattle-L.A.
In 1 Hr. 59 Min.
SEATTLE, —Boeing’s 707 jet
transport flew to Los Angeles
yesterday in 1 hour 59 minutes,
then made the return trip 2 min
utes faster.
The Boeing Airplane Co.’s four
jet airliner maj|e the 959-mile
flight to Los Angeles to pick up
a group of British Overseas Air
ways Corp. technicians and bring
them here.
The flights were the fastest
ever made by a commercial-type
plane between the two cities. Op
the speedier northbound run the
707 averaged 507 miles an hour.
Boeing officials said the swept
wing jet was “loafing” and could
have shaved both times consider
ably. The present commercial
record of 2 hours 21 minutes is
held by a United Airlines DC-7.
The BOAC technical evalua
tion team came to this country to
inspect the 707 and the facilities
at Douglas Aircraft Co., Santa
Monica, Calif., for building the
future DC-8 jet airliner.
Freighters Collide
In North Atlantic;
One Sinks, Crew Saved
NEW YORK, 0PU-Two freight
ers collided early today in thick
fog in the North Atlantic 450
miles east of Boston and one of
them went to the bottom about
three hours later.
All crewmen of the sunken
Panamanian ship Estroil were re
ported safe aboard the other ship,
the Italian freighter Dea Maz
zella.
The Estroil carried a crew of 34.
An S-O-S sent out by the Es
troil after the 1:30 a.m. collision
said*she was taking on water. The
crew took to lifeboats and were
picked up by the Mazzella. The
Estroil, loaded with iron ore, sank
at 4:22 a.m.
eign tin has prevented any large
scale development of this impor
tant American resource.
Altogether, Alaska has pro
duced about 2,000 tons of tin.
The national defense aspect of
developing America’s own tin
sources weighed heavily with the
committee in favoring the meas
ure.
The major benefit from the
government - sponsored develop
ment, however, should come from
the interest that the guaranteed
price is certain to stimulate
among major investors and jobs
that would result in Alaska.
The bill authorizes the General
Services Administration to pur
chase 22,400,000 pounds of metal
ic tin, which, at the $1.20 price
for placer tin, would come to $26,
880,000.
The government-set price for
lode tin, more expensive to mine,
is set by the bill at $1.35 a pound.
One source estimates that to
produce 10,000 long tons of tin in
Alaska would require at least
10,000 tons of supplies, fuel and
machinery to be shipped from
Seattle.
Maharaja Is Down To
His Last Four Elephants
LONDON, OP—The Maharajah
of Jaipur said today he is down
to his last four elephants and is
turning one of his five remaining
palaces into a hotel.
It isn’t that the 44-year-old
Maharajah is starving, or any
thing like that.
But his income, once fabulous,
is a paltry $335,000 a year since
—under the new order of things
in India—he beca*me governor of
Jaipur instead of its absolute
ruler.