OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS _
VOL. LVI No. 103 olVLL. ALASKA, WEDNESDAY^"SEPTEMB tt 1. l954~" Per Copy—15^
Senate Probers of FHA Scandals
Hear Ken Kadow Mention “Bribe”
In Connection with Alaska Project
LOS ANGELES, UPC-The word :
“bribe” was mentioned in con
nection with an Alaskan housing
project at a hearing here yester
day by a Senate subcommittee
investigating F-H-A scandals in
the building industry. Sen. Cape
hart (R-Ind) is conducting the
hearing, which is also delving into
southern California angles of FHA
activities.
Kenneth Kadow, former De
partment of Interior representa
tive at Juneau, Alaska, brought
up the word “bribe.” Kadow, who
now lives in Anchorage, said that
shortly before leaving the govern
ment service he had talked with
C. C. Staples, the territorial FHA
director for jf^aska.
Kadow said he had mentioned
to Staples there might be a job
in the offing for him if a housing
project in which Kadow was in
terested were approved, but Sta
ples said that he was only inter
ested in cash.
“So then I came up with a fig
ure of $100 a unit,” Kadow said.
He added that nothing more
(Continued on Page 3)
Severe Damage
From Storm in
Northeast U.S.
BOSTON, UPl—The northeast
states surveyed devastation and
havoc of hurricane Carol today as
the death list mounted to 49 and
unofficial estimates placed prop
erty damage at from 300 to 500
million dollars.
New England was hardest hit
by the season’s third hurricane,
which spent itself out in Canada
after its fierce whirl up the At
lantic coast yesterday.
And while repair and highway
crews labored to restore normal
conditions, the weather bureau at
Miami, Fla., announced another
tropical storm has formed in an
easterly wave, 675 miles east of
Daytona Beach. It is expected to
move northward during the next
24 hours at a slightly slower rate
than the 18-20 mile sped it was
making this morning.
Carol’s greatest fury was spent
along the Rhode Island and Mass
achusetts coast line. Cape Cod
beach areas were a shambles of
splintered cottages. It was be
lieved the damage might be great
er than that of the 1938 hurricane.
X
National Guar4smen patroled
Cape Cod towns to prevent loot
ing.
A major problem for house
holders and food handlers was
lack of refrigerators. Scores of
cities and towns were without
power. Ice and dry ice were at a
premium.
One utility said it might be
three days before electric power
is restored to some communities
and owners of freezers, domestic
and commercial, faced heavy loss
of stored goods.
Another handicap was tele
phone service. Throughout New
England alone 245,000 telephones
went out.
256,000 Acres Near
Norton Sound Filed
On By Oil Interests
FAIRBANKS, UPl—Oil leases on
256,000 acres of land approxi
mately 300 miles northwest of
Fairbanks near Norton Sound in
the Kateel River region were filed
in the land office here yesterday.
Earl Henderson of Salt Lake
City filed the leases on behalf of
leaseholders, who include movie
star Jimmy Stewart as well as the
Texato Oil Co., of Fort Worth and
the Buke-Scanlon Oil Co., of Min
neapolis.
The leases are a result of pre
liminary planning and survey
work by the Fairbanks Oil and
Gas Co.
The announcement said it is
planned to drill up to five weeks
at a cost of two million dollars in
the area, located just south of the
Brooks Range.
A check for $65,000 accompan
ied the oil leases. The job of tak
ing the filings so jammed up the
land office here that additional
help from the Anchorage office
was sent to Fairbanks.
One of the lease-holders is F.
Kirk Johnson, Fort Worth, Texas,
oilman, TV-station owner and air
line operator. Johnson is associa
ted with Stewart and independent
concerns supporting the venture.
Death of Sen. Maybank
Leaves 46 Democrats to
48 GOPs, 1 Independent
FLAT ROCK, N.C., Ml—Senator
Burnet Rhett Maybank, 55, a life
long South Carolina Democrat,
died at his summer home here
early today of a heart attack.
Members of his household said
he was ‘‘feeling fine yesterday”
and that death came in his sleep
about 12:15 a.m.
His death reduced the number
of Democrats in the Senate to 46.
There are 48 Republicans and one
independent.
In traditionally Democratic
South Carolina there was no doubt
a Democrat would be named to
succeed him.
A successor probably will be
named in the general election .on
Nov. 2. Meanwhile, Gov. James
F. Byrnes, whom Maybank was
elected to succeed when Byrnes
left the Senate in 1941 to become
a Supreme Court justice, may
name a senator to serve until the
election.
PRICE OF GOLD ON LONDON
MARKET REACHES $35 OUNCE
LONDON, (/PI—The official gold
price Tuesday hit 250 shillings an
ounce on the London bullion mar
ket, the highest quotation since
dealings in free gold were re
sumed last March.
This is equal to the U.S. fixed
price of $35 an ounce.
Market sources explained the
gold price is following the fluc
tuations in the dollar-sterling ex
change rate.
School To Start
Sept. 7 With Eight
New Teachers
The Nome Public School, along
with most other territorial schools,
will open Tuesday, September 7,
with eight new teachers, one of
them for the high school.
Nome High School enrollment
is expected to be up about 25 over
last year. For the first time in
many years chemistry and phys
ics will be offered to juniors and
seniors.
On the high school faculty will
be William L. Angell, superinten
dent; Olaf Halverson, high school
principal and keeper of records,
teaching geometry, algebra I and
mechanical drawing; Mrs. Emma
E. Cameron, English and Latin;
Dale Silverberg, teaching com
mercial subjects and managing
the school paper; Henry Ullrich,
physical education, chemistry,
general science, advanced algebra
and trigonometry.
Grade school teachers in the^
primary grades with one possible
exception, will be Mrs. Coons,
Mrs. Helen Olson, Mrs. Ann
Gillis, Mrs. Ella Tripp, Mrs.
Madeline Foster;
Intermediate grades; Mrs. Mar
uerite Glavinovich, Mrs. Helen
Bockman; Mrs. Helen Dunbar;
Miss M. Wilson and Miss C.
Francis;
Upper grades: Miss Margaret
Steinbreck, Herb Williams and
Harlan Tripp.
son may be teaching one of the
grade rooms.
Mrs. Ann Parkinson may be
teaching one of the grade rooms.
Music teacher will be Robert
Heath.
Superintendent' Angell has an
nounced a meeting of the grade
school teachers for 2:30 p.m. on
Monday, Sept. 6.
3 Convict Choristers
Take It on the Lam
During Church Dinner
, WINSTON-SALEM, N.C., UR—
The nine-member choir of the Ire
dell Prison Camp sang at the Mt.
Sinai Church of God near here.
After the service the congrega
tion was host to the chcrir at a
chicken dinner.
During the dinner, Rufus Peo
ples, 59, serving 27 years for mur
der, disappeared. Guards permit
ted Ernest Fair, 34, serving four
years for breaking and entering,
and Charles Green, 30, serving
four years for assault with intent
to kill, to help hunt for Peoples.
Soon Fair and Green disappeared.
Guards are still looking for the
three choristers.
TUESDAY BASEBALL
American Lfeague
Cleveland 6, New York 1
Washington 5, Detroit 3
Philadelphia 8-6, Baltimore 6-3
Chicago at Boston, rained out
National League
New York 5, St. Louis 3 *
Milwaukee 2, Brooklyn 0
Philadelphia 9, Cincinnati 3
Chicago 14-7, Pittsburgh 2-3 v
Pacific Coast League
Oakland 11-6, Los Angeles 8-15
Hollywood 7, San Francisco 2
Portland 10, Sacramento 2
Seattle 1, San Diego 0 (11 inngs)
Henry Harmon Tells Nomeites
How Inadequate Welfare Funds
Require 20 % Cut In Grant Aid
Associated Press
Betters Service to
5 Alaska Points
SEATTLE, UP)—The first 24
hour leased news circuit connect
ing five widely scattered cities of
Alaska with the outside was start
ed by the Associated Press today.
The two-way circuit, nearly
2,800 miles long, provides a con
tinuous news link between the
A.P.’s nearest bureau in Seattle
and 15 newspapers and radio sta
tions at Anchorage, Fairbanks,
Juneau, Ketchikan and Sitka.
While increasing by several
times the amount of copy the
newspapers and radio stations
will receive, the 60-word-a-min
ute circuit also enables the Alas
kan points to send their news
direct to Seattle on the same wire.
Previously, the newspapers and
radio stations receiving the Asso
ciated Press report contracted for
specific periods from the Alaska
Communication System, a part of
the Signal Corps of the Army,
but no newspaper or station re
ceived more than 9,000 words per
day.
News from Alaska for distribu
tion in the United States was sent
by telephone or overhead press
messages.
The new wire utilizes ACS’s
radio circuits between Seattle,
Ketchikan, Juneau, and Sitka and
land lines from Skagway north
and west to Anchorage and Fair
banks.
Japanese Fleets Believed
Taking Alaska Salmon
From Spawning Ground
SEATTLE, Wt—George Johan
sen, secretary-treasurer of the
Alaska Fishermen’s Union, de
clared here yesterday net-marked
fish taken toy American fishermen
at the start of the Alaska salmon
season indicate Japanese offshore
fleets are taking some salmon
from Alaskan spawning grounds.
Johansen said returning fisher
men have brought back at least
150 reports at such net-marked
fish.
Marked fish were caught at the
start of the season, before they
could have passed through nets of
legitimate U.S. fishermen, Johan
sen said. However, he thinks they
could be fish washed out of nets
by rough weather near the tip of
the Aleutians, where thg Japan
ese salmon fleet stations some
catcher boats.
While American fishing in Al
aska has been cut far down to
conserve breeding salmon, Johan
sen said, the Japanese fleet in
creased from 83 catcher boats in
1953 to 212 the past year.
“We need more research before
we can be sure just where those
Japanese salmon are coming
frdm,” he commented. “Mean
while, I think we might be wise
to ask the Japs to curtail their
fishing until the issue is resolved.”
Henry Harmon, director of tne
Welfare Department, presented
various aspects of the program
last evening in the Federal Court
Room to' a capacity group of local
citizens interested in this agency
which has one of its headquarters
in Nome.
Assisting him with the presen
tation were members of the Wel
fare Board, composed of Evange
line Atwood of Anchorage, Father
Gallant of Skagway, I. Skarland
of Fairbanks and Omie McCarthy
of Nome.
With graphs and charts Harmon
ably explained how the appropri
ation of $2,968,320 for the bienni
um falls far short of meeting the
needs of the various phases of the
welfare work—so far short that a
20 percent cut in grant has had to
be made throughout the program
giving aid to children, the old age
assistance, and the blind.
Harmon answered many ques
tions explaining the work of the
department.
He explained that four workers
were needed in Nome as it serves
(Continued on Page Three)
Senators’ Decision
On McCarthy Split
On Party Lines
WASHINGTON, UPt—Senators
who spent 36 turbulent days prob
ing the Army-McCarthy row split
last night on whether Sen. Mc
Carthy (R-Wis) was at fault, but
all of them aimed barbs at Roy M.
Cohn and two high Army officials.
Republicans and Democrats di
verged in parceling out responsi
bility for the controversy. Repub
licans absolved McCarthy of im
proper conduct but said he had
been lax. Democrats attributed
“inexcuseable actions” to both the
senator and Cohn, former chief
counsel to the Senate Investiga
tions Subcommittee McCarthy
heads.
And both sides said Secretary
of the Army Stevens had sought
to appease McCarthy and Cohn
and had failed to stand up for
what he regarded as his rights.
Both were critical, too, of Army
Councelor John G. Adams.
Cohn, 27, who bore the sharp
est criticism from both sides,
commented that apparently any
one who seeks to expose Commu
nism “has to contend not only
with the smears of Communists
but with partisan politics as well.”
Cohn is a Democrat.
As for McCarthy, the Republi
cans said in their report that he
had not tried personally to bring
improper pressures to bear on the
Army in behalf of Pvt. G. David
Schine. The four GOP senators,
however, said McCarthy should
have exercised “more vigorous
discipline” <m his staff.
The three Democrats’ report,
on the other hand, said McCarthy
deserved “severe criticisr i ” and
contended he had “fully acqui
esced in and condoned” what they
described as Cohn’s improper tac
tics.