5£ NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LX No. 6 NOME, ALASKA, MONDAY, JANUARY 13, 1958 Per Copy—15*
Eisenhower’s Request for Alaska
Statehood Gets Only Lukewarm
Reception by Unofficial Delegates
By FRANK W. VAILLE
WASHINGTON, (^—President
Eisenhower’s renewed endorse
ment of statehood for Alaska and
Hawaii drew a lukewarm reaction
today from Delegate Bartlett and
the territory’s unofficial congres
sional delegation.
The presidential request for
action constituted the final rec
ommendation of the annual budg
et message to Congress:
"I also recommend that the
Congress complete action on
appropriate legislation admit
ting Hawaii and Alaska into the
Union as states."
While “Rep.” Ralph Rivers of
Fairbanks spoke of the endorse
ment as “very good and very spe
cific” and said he was pleased the
President was reconfirming his
earlier support, other Alaskans
on Capitol Hill reacted different
ly.
“My feelings are similar to
those of a youngster expecting a
big birthday cake and receiving
a part of a stale cookie,” said Del
egate Bartlett.
“The budget message should
have dealt more adequately with
this important subject. It is dis
tressing enough that there was
such casual reference but it is
almost humiliating that statehood
was ranked after the winter
Olympic games in order oiT im
portance.”
“Sen.” William Egan of Valdez
said he hoped the message “would
contain a forceful, expressive
leclaration that statehood legisla
tion should command enthusias
tic and early consideration” by
this Congress.
“Nevertheless,” Egan added,
“many conferences over the past
few days have given us great
heart that Congress will enact
legislation admitting Alaska to
statehood in 1958.”
“Sen.” Ernest Gruening said he
is glad statehood came in for
mention but that he had hoped
the message would show “a little
more vigor and give some of the
cogent reasons why admission of
Alaska would be a magnificent
action strengthening the United
States domestically and in the
eyes of the world.”
Eisenhower Sends Congress Record
Peacetime Budget of Near $74 Billion
By ED CREAGH
WASHINGTON, UP)—-President
Eisenhower sent Congress today
a record peacetime budget just
short of $74 billion. He said by
■far the largest part of it, almost
two-thirds, is for defense against
growing danger from Russia in
“the dawning age of space con
quest.”
The President disclosed that the
government now expects to wind
up in the red for the fiscal year
ending June 30. He announced
Budget estimates for the year
ending June 30 (in billions):
195$ 1959
Income $ 72.4 $ 74.4
Outgo 72.8 73.9
Balance -.4 .55
Year-End Debt 271.2 271.2
his intention to ask for a short
term increase in the present $275
billion limit on the national debt.
But he voiced confidence busi
ness will pick up and tax receipts
will increase so the new $73.9
billion budget for the 1958-59 fis
cal year, will be in balance.
He said he expects a surplus of
a half billion dollars or so, com
pared with the $400 million defi
cit now in sight for this year.
One surprise in the President’s
■proposals for government spend
ing and revenue collecting: he
called for a 5-cent postage rate
on all out-of-town first class let
ters. Congress so far has rejected
even his previous call for raising
stamp prices from 3 to 4 cents for
both local and out-of-town letters.
His message put heaviest em
phasis on security matters, with
a $39.8 billion request for the
armed forces alone. This is almost
$2 billion higher than last Jan-1
uary’s estimate.
Eisenhower called for cutbacks
as well as increases in the new
budget. For the armed forces, he
recommended a $1V6 billion slash
in manpower, installations and
older-type weapons, including
B-52 bombers and other aircraft.
And he proposed “curtailments,
revisions or eliminations” of
many non-military programs,,
ranging from federal payments to
farmers to expenditures for war
veteran services and benefits.
Eisenhower said:
“Americans have a tradition of
uniting in action when their free
doms and welfare are threatened.
We do not shirk our clear respon
sibilities when new challenges
arise.”
He told Congress, too, his pro
gram reflected the administra
tion’s “gradually but substantial
ly” changing emphasis in the
light of growing danger from
Russian military advances.
Sixty-four percent of the new
budget is devoted to “protection”
—armed forces, military aid to
allies and the like—compared
with 63 percent of the current
budget.
No general tax increases are
proposed. Eisenhower suggested,
in fact, some tax cuts to aid small
businesses, while recommending
higher taxes on aviation fuels to
reduce the cost to the government
of its activities in the air traffic
field.
ACS Improves
Nome-Fairbanks
Phone Service
The U.S. Army Alaska Commu
nication System announced today
! that telephone communication fa
cilities between Fairbanks and
Nome, Alaska, have been expand
ed and greatly improved by uti
1 lizing facilities of the White Alice
system.
The expanded facilities permit
a “sound and clear” telephone
circuit of very high quality.
This new* service constitutes
I the initial phase of expanding
and improving facilities between
Fairbanks and Nome. Additional
voice channels will be made
available in the near future.
1*6% Million Asked
For Territorial
Mental Hospital
WASHINGTON, UP>—'The larg
est single new money item ear
marked for Alaska in Eisenhow
er’s budget is $6Vfe million asked
to build a mental health hospital
in the territory.
This, the President explained,
“will enable the territory to con
struct a central hospital of about
225 beds in Anchorage and small
er acute treatment units of 30 and
20 beds each in Fairbanks and
Juneau.”
“In addition, if possible within
the appropriation, the territory
will construct one- or two-bed
brief-care units in general hospi
tals in strategic areas, and facili
ties for the administration of pre
ventive and outpatient care.”
Another $1,000,000 for admin
istration of the mental health
program is included within the
$2,165,000 asked by the public
health service for grants and spe
cial studies in the territory.
URSULA ELANNA
WINS NEW DODGE
“I’m all shook up,” exclaimed
Ursula Elanna when she phoned
Larry Galvin that she was the
winner of the new Sweptside
Dodge pickup.
The. Frank Elannas have neven.
owned a car and are thrilled with
having it and when presented
the key over TV stated that the
pickup would be used for fishing,
berrying, and taking their friends
for rides.
Mr. and Mrs. Frank Elanna
are well liked in the community
and everyone is happy that they
have a new car. The crew at the
TV station chipped in and bought
a license for them; Stan Morgan
gave them their first tank of gas
and an anonymous donor con
tributed the city sticker for 1958.
Gen. Taylor in Iraq
BAGHDAD, Iraq, —General
Maxwell Taylor, U.S. Army chief
of staff, arrived Saturday to visit
Iraqi military leaders. He is en
route to the Baghdad Pact mili
tary committee meeting later this
i month in Ankara.
Eisenhower Rejects Bulganin Bid
For Summit Meeting by April but
Sets Conditions for Future Talks
WASHINGTON, UPt—President
Eisenhower held open the door to
an East-West summit conference
today with word to Soviet Pre
mier Nikolai Bulganin that “I am
ready to meet” on two conditions.
Eisenhower’s reply to Bulganin
also urged Soviet agreement at
this “decisive moment in history”
to a far-ranging peace program
that would end nuclear weapons
manufacture and testing, curtail
use of the U.N. veto, and produc
tion of space age missiles, and
dedicate outer space “to the
peaceful uses of mankind.”
Any top-level meeting, Eisen
hower told Bulganin, must be
preceded by an airing of issues in
negotiations among diplomats and
foreign ministers.
Furthermore, he said, these
negotiations must show “good
hope of advancing the cause of
peace' and justice in the world”
toy agreements at the summit.
He thus rejected Bulganin’s call
last week for a meeting in three
months.
Eisenhower pledged the U.S.
would never engage in aggression
and pointedly expressed the hope
that “the Soviet Union will feel
a similar aversion to any kind of
aggression.”
Bulganin’s reaction to the Pres
ident’s terms could be decisively
negative, but diplomats here be
lieve a very active period of East
West diplomacy may be opening
up. They hold this view even tho
basic issues between Russia and
the West continue deadlocked
and much now being said on both
sides gives the appearance of a
gigantic propaganda battle.
McElroy Guardedly Reassuring on
U.S. Position in Space Age Weapons
By EDMOND LE BRITON
WASHINGTON, (^—Secretary
of Defense McElroy told Congress
today the U.S. military does not
have positive evidence Russia is
ahead in long range ballistic mis
siles—but it is acting on that basis.
Because time is critical, McEl
roy told the House Armed Ser
vices Committee, the Defense De
partment is pushing ahead with
the most promising weapons pro
grams.
He said it expects within the
next 18 months to begin produc
ing the Polaris missile, a 1500
mile weapon capable of being
fired from a submerged submar
ine.
The secretary testified behind
closed doors as the committee
opened a sweeping investigation
intended in the next few weeks
to cover all aspects of U.S. de
fenses and military operations.
On the vital issue of how the
U.S. stands by comparison to So
viet Russia in space age weapons,
McElroy was guardedly reassur
ing. In the field of short range
weapons already available for
use, “we are in a strong position,’*
he said.
But he also said the intermedi
ate and intercontinental range
ballistic missiles-^-those designed
to strike targets 1,500 and 5,500
miles away—constitute a critical
area.
It is because time is so impor
tant, McElroy said that Defense
decided to go ahead with produc
tion of two IRBMs—the Army's
Jupiter and the Air Force Thor—
altho “neither has been complete
ly tested.”
Ideally. McElroy said, it would
have been better to wait until
one was perfected.
The long range missile is still
farther off, he said, but a combi
nation of advanced bases and
IRBMs gives the U.S. “equivalent
fire power on the target.”
Budget Gives Alaska $24,696,000;
Controversy Seen Over APW Cut
WASHINGTON MV-Earmarked
specifically for Alaska in Presi
dent Eisenhower’s budget mes
sage today was $24,696,234. The
amftunt was down only slightly
from the $24,714,550 asked for
comparable projects in the cur
rent fiscal year.
It does not reflect money for
Alaska contemplated under lump
sum programs such as defense.
The detailed breakdown bared
one probable source of contro
versy. This is the Alaska Public
Works program, for which the
President asked $4 million as
compared with his request of $6
million for the current year.
Inasmuch as the program now
is scheduled to die—unless ex
tended—on June 30, 1959, Alas
kans had hoped the President
would ask for the full $5,372,000
remaining in the 10-year pro
gram’s original $70 million au
thorization..
Other money items:
The Alaska Railroad, $21,488,
000; Alaska Communication Sys
tem, $5,500,000; public airports at
Fairbanks and Anchorage, oper
ation and maintenance, $1,200,000;
Mt. McKinley National Park,
$400,000; governor’s office, $113,
660; legislative expense, $48,000;
Administration of Pribilof Is
lands, $1,816,500; administration
of Alaska fisheries, $1,592,275; the
Bureau of Reclamation, investi
gations, $247,000; Eklutna proj
ect, $267,000; mental health hos
pital, $6Vfe million.