SSI NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LXI No. 84 NOME, ALASKA, WEDNESDAY, JULY 15, 1959 _Per Copy—15#
STEEL WORKERS STRIKE IDLES
• i
90 PERCENT OF NATION’S MILLS;
PITTSBURGH, UP—Steel mills
producing 90 per cent of the na
tion’s steel lay idle today in the
grip of the sixth major strike
since World War II.
President Eisenhow.er, hopeful
that negotiations will bring a
quick end to the strike, told his
news conference at Washington
that present conditions do not
warrant invoking the Taft-Hart
ley Act in an effort to end the
walkout.
In New York, the Steelwork
ers Union proposed the industry
agree to submit strike issues to a
fact-finding board composed of a
man named by the union, another
by the industry, and an impartial
member to be named by Chief
Justice of the Supreme Court Earl
Warren.
The proposal was made in a
letter by Union President David J.
McDonald to the industry’s four
man negotiating team. McDonald
said the recommendations o£ such
a board would not be binding.
Much of the industry had closed
down in advance of the midnight
strike deadline, with thousands of
the half million steel workers al
ready laid off.
Mills and furnaces with a pro
ducing capacity of more than 125
million tons of steel annually
were affected. Firms responsible
for about one-tenth of the nation’s
capacity were not involved in the
present labor dispute and will
continue operating.
The strike loss will be tremen
dous — with effects quickly
spreading to other industries a?
steel inventories, high for some
types of steel, become depleted.
In the steel industry alone the
value of lost production is esti
mated at about $300 million a
week. The loss in wage and other
benefits to idle workers is cal
culated at about $70 million a
week, or nearly’ $300 million a
month.
Senate Committee Votes
Larger Share of Airport
Aid Funds to Hawaii
WASHINGTON, UP — A Senate
Commerce subcommittee voted
yesterday to allow Hawaii a big
ger share of federal airport
money.
The additional money would be
made available through what is
known as the Discretionary Fund.
This fund is used for projects
needed for safety purposes, re
gardless of allocations from the
regular airport improvement
money.
There was no indication what
amount would be involved.
The action was taken while the
subcommittee was considering a
compromise proposal for govern
ing Alaska’s share of federal air
port money. Members said Ha
waiian participation in the Dis
cretionary Fund should be per
mitted because of Hawaii’s im
portance to the nation’s air sys
tem and because of the territory’s
approaching statehood.
Britain and Russia Said
Making Progress Toward
Big Four Conference
GENEVA, UP)—Britain and the
Soviet Union were reported today
to have made progress toward re
viving secret talks at the Big Four
foreign ministers conference.
Western informants said the
foreign ministers or their depu
ties may begin a series of social
meetings later this week in order
to take the negotiations out of the
glare of well - publicized speech
making sessions.
The conference has become
snarled by disagreements not only
between the Soviet Union and the
West, but between the Western
powers themselves on some issues.
British and Soviet officials were
reported to have made some pro
gress on getting the talks into a
series of social meetings on var
ious levels before the Big Four j
ministers-- went into a formal ses
sion at the Palace of Nations to
day.
U.S. Govt. Will Pay
$1,867,545 Damages
To Nixon-Yates
WASHINGTON, UP)—1The U. S.
Court of Claims today upheld the
claim of the Dixon-Yates combine
for damages because the govern
ment cancelled its controversial
power, contract.
Dividing 3-2, the court rejected
the governments contention that
the activities of Adolphe H. Wen
zell constituted a conflict of in
terest. It ruled that Dixon-Yates
should be reinbursed for out-of
pocket costs before the contract
was cancelled.
The court awarded $1,867,545.56
which was about what Dixon
Yates finally, asked.
Wenzell served as a consultant
to the Budget Bureau at the same
time he was a salaried official of
the First Boston Corp., which be
came financial agent for Dixon
Yates interests.
It was on this ground that the
Justice Department contended the
government should be relieved of
paying anything to Dixon-Yates
as a result of the contract can
cellation.
The Dixon-Yatefe contract, en
tered into by the Atomic Energy
Commission at the time it was
headed by Lewis L. Strauss, called
for a 107 million dollar power
plant at West Memphis, Ark.
The contract stirred up a battle
in Congress over charges that pri
vate power was usurping a public
power area.
Eisenhower ordered the con
tract cancelled in 1955.
Funeral For Agnes Crosby
Held Today In Seattle
SEATTLE, UPi—Funeral services
for Mrs. Agnes Crosby, 53, of
Nome, were to be held here to
day. Burial will be at Seattle.
Mrs. Cro9by died Sunday in a
Seattle hospital. She was born in
Seldovia and was a past matron
of the Nome chapter, Order of
Eastern Star.
She is survived by her hus
band, B. L. Crosby of Nome, and i
three brothers, Lawrence Olssen,
Seldovia; Dick Olssen, Richmond
Beach, and Bill Olssen, Seattle.
President Will Not
Use Taft-Hartley
In Steel Strike
By MARVIN L. ARROWSMITH
WASHINGTON, UP) —President
Eisenhower said today present
conditions do not warrant invok
ing the Taft-Hartley law in an
effort to end the steel strike.
At a news conference, Eisen
hower declined to speculate on
when steel stockpiles might be
reduced to a point which would
imperil national defense.
The Taft-Hartley law permits
the government to seek a * court
order to end any work stoppage
which the President finds is a
threat to national security.
Discussing the strike which
commenced at midnight Tuesday,
Eisenhower again expressed hope
that free bargaining between the
steel companies and the union
will result quickly in a new con
tract.
Asked whether he thought, now
that a strike is under way, that
the government should have pur
sued any different course in its
efforts to head off a shutdown,
Eisenhower replied that he is con
vinced the government course
was right. “We have to have free
bargaining in such situations,” he
said. “If there is too much gov
ernment pressure, then bargain
ing is not free.
The news conference touched
also on these other matters:
Minimum Wage: The President
said he agrees absolutely with
Secretary of Labor James Mitchell
that legislation to increase the
minimum wage to $1.25 an hour
in some cases, and bring several
million more workdirs under the
minimum wage law would be in
flationary.
Nixon visit: He is very hopeful,
Eisenhower said, that when Vice
President Richard M. Nixon visits
the Soviet Union he will get ex
actly the same privileges and op
portunities to see the country that
Russia’s Deputy Premier Frol R.
Kozlov got while in the United
States.
Sen. McClellan Says
Hoffa Will Never Clean
Up Teamsters Union
WASHINGTON, UP)—Sen. John
L. McClellan said today it is crys
tal clear James R. Hoffa never
will clean up corruption in his
Teamsters Union.
The Senate rackets probers
headed by McClellan wound up
Tuesday a 2 Vis year investigation
of Teamster President Hoffa and
scandals in the union.
As a parting shot, committee
counsel Robert S. Kennedy de
nounced -Hoffa to his face as a
taker of payoffs from employers.
“I’ll tell you that’s a lie,” Hoffa
flared back.
The inquiry ended just about
where it had started. Hoffa made
lengthy replies to every question
the committee asked but they con
tained little information.
He testifiedhe will move—“in
due course”—to deal with gharges
that gangsters, racketeers, ex
tortionists (and narcotics peddlers
have risen to power as his aides
in important union offices.
In hopeful tones, Kennedy told
reporters the board of monitors
appointed by a U.S. district court
to help police the Teamsters
could ‘make the problem aca
demic” by removing Hoffa as the
union’s president.
Private Research Vessel Determines
Russian and Japanese Fishing Fleets
(leaning Out The Bering Sea Fishery
By STANTON H. PATTY
SEATTLE, UP>—1The hush-hush
voyage of the Jeannette F. to scout
Russian and Japanese fishing
fleets in Bering Sea was under
taken by the Wakefield Fisheries
because the federal government
had refused to do the job.
Lowell Wakefield, company
president, and others in the Seat
tle fishing industry are convinced
this was the sort of evidence
gathering mission the government
should have undertaken.
But the government wanted no
part of it, Wakefield said. There
have been many cases where the
State Department has said, in ef
fect:
“Fisheries are not important
enough to risk ruffling our rela
tions with Japan.”
Wakefield estimated the 21-day
2,835-mile voyage cost him $8,000.
The Jeannette F., a Seattle
fishing boat, brought home this
evidence:
1. The Japanese and Russians
are sweeping the northern seas
like vacuum cleaners with highly
mobile, efficient equipment.
The supply of several kinds of
food fish may be depleted beyond
repair.
2. The Japanese are catching
staggering numbers of king crab,
an important, profitable resource
American fishermen are compet
ing for on a smaller scale.
3. The Russians have prospect
ed and moved into halibut
grounds. This thwarts efforts of
the United States and Canada to
conserve halibut under the Inter
national Pacific Halibut Commis
sion.
The Bering Sea Japanese fleet
found by the Jeannette F. was
taking a large, miscellaneous
catch of other food fish so far
not sought after there by Ameri
can fishermen. These include sole
and cod.
Capt. Arne Serwold of the Jean
nette F. said, “The way the Japa
nese and Russians we saw are
fishing the could clean out the
grounds eventually.”
An official of the Tokei Maru,
a crab mothership, told the Jean
nette F. by radio that it was re
turning to Japan with its quota
of 70,000 oases of king crab meat.
That is about 1,500,000 crabs.
Alaska Bishop Has
Audience With Pope
VATICAN CITY, UP) — Pope
John XXIII today received five
U. S. bishops in separate audi
ences.
They are Francis J. Green, aux
aliary Bishop of Tucson, Ariz.;
Bernard Theodore Espelage, Bish
op of Gallup, NjM.; Richard Ge
row, Bishop of Natchez-Jackson,
Miss.; Charles Herman Helmsing,
Bishop of Springfield-Cape Gir
ardeau, Mo.; and Dermot O’Flan
agan, Bishop of Juneau, Alaska.
Bishop Green' said after, his 15
minute audience that the Pope
placed particular emphasis on the
importance of the ecuminical
council of the Roman Catholic
Church, which the Pontiff has
called. A date for the meeting has
not been set.
The bishop said the Pope urged
that all efforts be made to guar
antee success of the council and
to draw the attention of Catholics
everywhere to its purposes of
achieving greater Christian unity.
Busy Day For Royal Pair
NEW WESTMINSTER, B.C., UPI
— Queen Elizabeth and Prince
Philip began one of the most rig
orous days of their western Can
ada tour today with nearly a
dozen official ceremonies ahead
of them.
The day-includes the Queen’s
dedication of a 23-million dollar
tunnel, visits to two parks jam
med with children, a civic lunch
eon. a hospital stop, a formal din
ner and brief stops at two eve
ning musical events.
The schedule is in sharp con
trast to yesterday’s leisurely
train trip along the swift-running,
often spectacular Fraser and
Thompson rivers.
At the end of today’s round of
functions the Queen and Philip
board a navy destroyer escort for
an overnight trip to Vancouver
Island to begin a two-and-a-half
day visit there.
Mounties On Trail Of
Slayer of U.A. Student
VANCOUVER, B.C., UPt—Police
are looking for a man believed
traveling in Quebec for question
ing in connection with the slay
ing of a University of Alaska stu
dent in Northern British Columbia
last month.
Royal Canadian Mounted Police
here said today an all-points call
has been issued to watch for a
Texan driving a late model car.
They said they want to “talk to
him” about the murder of Bruce
Worline, 30.
Worline’s bullet - riddled body
was found near McLeod’s Lake,
90 miles north of Prince Rupert,
B.C., June 29. He was driving
from Alaska to California in a
panel truck which was found a
week later in a hotel parking lot
here.
Meanwhile, the search for Wor
line’s killer may be extended into
Alaska. t
An RCMP officer from Prince
George this week is driving Wor
line’s truck back to Prince George
stopping at service stations and
coffee shops along the way hoping
someone will be able to identify
the driver of the vehicle.
TUESDAY BALL SCORES
Paciic Coast League
Salt Lake City 9, Phoenix 5
Sacramento 10, San Diego 8
Portland 4, Seattle 2
Spokane 4, Vancouver 0
American League
Kansas City 1-1, Baltimore 0-3
New York 1, Cleveland 0
Washington 4, Detroit 2
Chicago 7, Boston 3
National League
Chicago 10, Milwaukee 5
Pittsburgh 9, Los Angeles i
St. Louis ti, Cincinnati 5
WEATHER FORECAST
Partly cloudy with scattered
rain showers. Lowest temperature
expected tonight 30-35, the high,
tomorrow 50-55.
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