SIS NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS_
VOL. LXIII No. 12 NOME, ALASKA, MONDAY, JANUARY 30, 1961 Per Copy 15?
Two Key Democratic Solons Come Out
Strongly for a General Property Tax
By Virginia C. Sims
JUNEAU UP) — Two key Demo
cratic lawmakers came out strong
ly today for a general property
tax to eliminate what they called
some of the free riders in Alas
ka’s current tax structure.
House Speaker Warren Taylor
said he would feel some reluc
tance over increasing taxes now
collected by Alaska while there
remain a number of untouched
sources of revenue within the
state.
“I led the floor fights in 1949
when a general property tax was
applied in the Territory,” Tay
lor said. “The tax was repealed
by the Republican-controlled Leg
islature in 1953 — but the means
for its application still remain.”
Taylor estimated some $200 mil
lion in real assets now lie out
side the state’s taxable areas.
These include canneries, resorts
and road houses, all of which
benefit from state-supported
schools, police protection and
highways.
“The one per cent property tax
of 1949 probably now would
bring in $2 million dollars or
more,” Taylor said.
Should Broaden Slate Tax Base
Sen. John McNees, Chairman
of the Senate Rules Committee
and a member of the Finance
Committee, agreed that the state
tax base should be broadened
rather than pyramided under the
administration’s proposed increase
in the state individual income
tax, from 14 to 16 per cent of
what a person pays in federal
income taxes.
President and Wife
Greet 300 at White
House Reception
By Francis Lewine
WASHINGTON UP) — President
and Mrs. Kennedy shook hands
with 300 members of their official
family at a gay White House re
ception Sunday night, featuring
champagne and mixed drinks._
The President said it was the
first chance he had had to meet
many of the new members of
his team.
The 5 p. m. gathering — first
social event at the White House
given by the Kenncdys — started
off with the swearing in of 15
of the latest appointees. Chief |
Justice Earl Warren, introduced i
by Kennedy as “the busiest man 1
in Washington,” officiated at the j
ceremony in the East Room.
Mrs. Kennedy, in a black velvet1
sleeveless sheath dress, stood with j
her husband, Vice President and ;
Mrs. Lyndon Johnson and the;
Warrens to receive the guests in j
the Blue Room, where a fire |
burned in the stately fireplace. '
The guests mingled later in the j
state dining room, where a buffet
table was laden with tiny sand
wiches, cakes and goodies.
The Kennedys left for their
private quarters after about an
hour on the receiving line and j
did not join the guests in the1
dining room.
The party brought together
some of the President’s very
newest appointees, such as Edward
R. Murrow, Director of the United
States Information Agency, named
only Saturday, and some hold
overs from prior administrations,
such as long-time FBI Chief J.
Edgar Hoover.
Gov. Egan has asked for a
budget increase of roughly $334
million, to be financed by surplus
funds in omnibus grant moneys
and the increase in the state in
dividual income tax, which would
bring in some $1,314,000.
“This honeymoon grant money
will come to an end and must be
faced by a broadening tax base,”
McNees declared. “The funds for
the budget increase that will be
taken from omnibus funds that
now exist may be desperately
needed when the omnibus grant
moneys are no longer available
in 1965.”
McNees said that the time has
come to investigate sources of
revenues which offer low admin
istrative costs and perform some
other function than increased
revenues alone.
“The need for a property tax
program falls into this category
as it is estimated that a 5 mill
levy at this time would do little
more than ‘cost out’ until such
time as a state appraisal has been
accomplished and the program is
actually functioning,” McNees
said.
Survey Badly Needed
“It is recognized, however, that
such a statewide survey of our
taxable real assets is badly need
ed for at least two reasons:
"1. To return property now
being ‘held,’ but not developed, to
a role of usefulness and develop
ment; and
"2. To bring into being a pro
gram of contributions to the cost
of statewide government from the
areas outside of our incorporated
cities and to have it keep pace
with our land development pro
gram.”
McNees also called for the con
sideration of a one per cent state
wide sales tax, which, he said,
would meet the costs of inter
mediate borough government and
also would tap the mail order
purchases being made outside of
the state.
McNees also suggested law
makers look into such revenue
sources as excise taxes on liquor
sold in Alaska for military con
sumption as well as excise taxes
on new car purchases, particu
larly in the pleasure car cate
gory.
' ourt Order Halts
Operation of New Airlines
ANCHORAGE UP) — Star Air
Lines flights between Anchorage
and Fairbanks have been sus
pended as a result of Superior
Court Judge James Fitzgerald’s
10-day temporary restraining
order halting the operation.
Fitzgerald will preside over a
hearing on a preliminary injunc
tion today. He signed a temporary
order after the close of regular
court business Friday.
State Public Service Commis
sion Chairman Charles Herbert
said he did not see how the air
line could legally operate as an
air taxi carrier under the present
state laws adopted from Civil
Aeronautics Board regulations
which were in effect prior to state
control of intra-state flights.
WEATHER FORECAST
Partly cloudy. Low tonight 0
to -5, high tomorrow 10 to 15. In
the last 24 hours: High of 13, low
of 4. Sunrise at 8:51 a. m., sunset
at 5:40 p. m.
JFK Paints a Dark
Picture in State of
Union Message
WASHINGTON UP) — President
Kennedy told Congress today he
has ordered a speed-up in the
Polaris submarine and missiles
programs and bolstering of other
U. S. military powjr.
Somberly, he said to a joint
Senate House session this is “an
hour of national peril” with the
Communist tide running strongly
against America.
And, in a State of the Union
M e s s a g e delivered personally,
Kennedy painted a dark picture
of the domestic scene and out
lined a series of measures he
wants to revitalize an economy he
said has been in recession for
seven months.
These included improved un
employment compensation, more
food for the families of the un
employed, aid for development of
distressed areas, stimulation of
housing and construction, a higher
minimum wage, tax incentives for
plant investment and health care
for the aged under Social Securi
ty.
The Senators and House mem
bers gathered in the House cham
ber to hear Kennedy report on
the view he holds of the national
situation as he found it on taking
office Jan. 20.
His one sentence sum-up was
this:
“No man entering this office
could fail to be staggered upon
learning — even in this brief
10-day period — the harsh enor
mity of the trials through which
we must pass in the next four
years.”
And, at another point, he de
clared: “Before my term has
ended, we shall have to test anew
whether a nation governed and j
organized such as ours can en
dure. The outcome is by no means
certain. The answers are by no
means clear.”
After the session, the general
reaction of Republicans in com
ments to newsmen was that Ken
nedy had overly stressed the'
gloomy side.
From Democrats, there were j
such appraisals as challenging,
inspiring and remarkable.
Kennedy was greeted with a
standing ovation when he was
escorted into the chamber.
An array of microphones before
him carried his address to the
national television and radio
audience.
Kennedy drummed with his fin
gers on the podium—a charac
teristic gesture — as he read his j
message in a clear, loud voice.
Emphasizing his points, he
clenched his right hand and ges
tured rapidly.
The President wore a blue pin
stripe suit and striped tie.
He got a big hand when he
said his administration “does not
intend to stand helplessly by”
in what he described as a reces
sion. But Republicans noticeably
were not joining in the applause.
It took Kennedy 44 minutes to
deliver his 4,600-word address.
He had been interrupted by ap
plause 37 times.
Kennedy was given a standing
ovation when he concluded and
left the chamber.
LONDON, UP) — The Soviet
Union resumed jamming Voice of
America broadcasts beamed to
the Soviet Union today after 24
hours completely free of inter
ference.
Senate Votes to go Into Executive
Session on Charges Released hy Coghill
JUNEAU UP> — The Senate
voted today to go into executive
session for the consideration of
charges released by the press by
Sen. John Coghill that funds can
not be accounted for in State
Aviation Division books. The ex
ecutive session, set for 2 p. m.
Tuesday, will be closed to both
the tpublic and to newsmen.
In a stormy session, Coghill
drew the fire of Democratic
solons for releasing information
to the press which had not been
presented to the Legislature.
Sen. R. J. McNealy, Senate Ma
jority Leader, wound it up by sub
mitting a resolution that Coghill
be censured by the Senate for
“his misuse of his position as
Chairman of the Legislative Audit
Committee in a manner not be
coming a senator to the detri
ment of the state.”
Coghill, Republican Minority
Leader, told newsmen Friday
that the committee had been un
able to locate funds for a $2 mil
lion airport construction revolv
ing fund in its examination of
the aviation division’s records.
No reference to such missing
funds appeared in an annual re
port of the Audit Committee which
was laid upon senator’s desks on
the opening day of the 1961 Leg
islature.
News reports of Coghill’s state
ments Friday touched off a siz
zling exchange of statements be
tween the Audit Committee Chair
man and Gov. Egan which con
tinued throughout the weekend.
Egan claimed the Aviation Di
vision books were in order and
demanded that Coghill make a
public apology or produce proof
of his charges.
Coghill replied that he intended
to place the matter before the
whole Senate.
Fireworks Start Early
But the fireworks started j
earlier than anticipated this morn
Difficulties Postpone
Launching of Minuteman
CAPE CANAVERAL UP) — Tech
nical difficulties today forced
postponement of the first attempt j
to launch a Minuteman intercon
tinental missile, the weapon
which could give the Uniaed
States true push-button war
capabilities.
The countdown had proceeded
to within four seconds of launch
ing when missilemen called the ,
shot off. A brief Air Force an
nouncement said only that the;
shot was postponed because of
technical trouble.
No new launching date was set.
If the trouble is minor, another
attempt to launch the 63-foot solid
fuel rocket could be made in a
day or two.
FAITHFUL DOG KEEPS
WATCH OVER BOY'S BODY
SAN MARCOS, Tex. (,?) — Puz- !
zled relatives learned Sunday
why one of two pet dogs who dis
appeared with Bobbie Jack Mc
Mullin, 14. last Tuesday didn’t
come home.
Members of a big search party
found the dog keeping watch be- i
side’s Bobbie’s body in rough
country on the L. O. Backus
ranch 31^ miles west of here.
The boy, a slight 60-pounder
clad only in blue jeans, a light
shirt and jacket, and tennis shoes,
died about Friday of exposure to
suib-freezing cold.
ing when W. O. Smith rose
on a point of personal privilege
to criticize the headlines which
appeared in connection with Cog
hill’s statements on the report.
Coghill jumped up to say that
the Audit Committee reports had
been placed on the senators’ desks
prematurely. He moved that the
Senate form itself into a “com
mittee as a whole” so that Audit
Committee minutes and records
could be laid before it. His mo
tion failed 11 to 7 with 2 absent
Smith then moved that a bi
partisan committee, made up of
two members from each political
parties, be named to look over
the minutes of the Audit Com
mittee and “bring to light points
in dispute.”
That one failed too by a count
of 12 to 6 after McNealy said
he felt the matter should first
be presented to the Senate as a
whole, with a smaller committee
to be named later if necessary.
Bronson Jumps into the Fray
Sen. Bronson then jumped into
the fray.
“No such figures showed in the
report that was placed on our
desks,” Bronson thundered. “If
such figures were released by a
senator to the public — and if
they are not true — they should
be retracted.
“Any fight between him, (Cog
hill) and the governor is a fight
between the majority and minority
parties.”
Senate President Frank Pera
trovich then called a 10 minute
recess while tempers cooled.
Back in session, the Senate
voted to hold the secret executive
session Tuesday afternoon.
Things were cooler in the House
where members shivered through
the opening roll call and then
recessed until 2 p. m. — when
they hoped the heat and light
would be back on in the Capitol
Building.
Taku winds up to 68 miles an
hour, sweeping the Juneau area,
had caused a power failure. Power
was restored shortly after 11 a. m.
Captain of Ili-Jacked Ship
Anxious and Ready to
Land His Passengers
RECIFE, Brazil, UPi — Capt.
Henrique Galvao said today he
is ready and anxious to land the
passengers of the hijacked liner
Santa Maria in Recife tomorrow.
The leader of the rebel band
aboard the seized Portuguese liner
so advised reporters and U. S.
Naval officers aboard a plane
circling the liner off this Bra
zilian port.
Galvao said he hopes to facili
tate the transfer of the pproxi
mate (100 passengers so that they
may continue their journey —
afier a detour of eight days and
2,300 miles.
Janio Quadros, who becomes
President of Brazil at noon tomor
row, has given Galvao an assur
ance that as an old friend he
can find a haven in Brazil. Quad
ros also indicated he would not
move to seize the liner for its
Portuguese owners, as the out
going administration of Presi
dent Kubitschek has threatened.
A U. S. admiral arranged to
meet Galvao aboard the Santa
Maria at daybreak Tuesday. Rear
Adm. Allen E. Smith Jr., U. S.
Navy Commander in the Carrib
bean, said Gavao proposed the
meeting and he quickly accepted.
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