SB NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVI No. 36 NOME, ALASKA, WEDNESDAY, MARCH 24,~ 1954 Per Copy—15c
McCarthy Puts Off
Investigation Of
Fraud In Alaska
WASHINGTON, UP- — Sen. Mc
Carthy today announced and then
suddenly postponed plans for two
new investigations involving al
leged fraud in Alaska and Com
munists in defense plants.
Two Democrats and two Repub
lican members of McCarthy’s
seven-man Senate Investigations
subcommittee had just cast cold
water on the proposal for new
hearings when Sen. Mundt (R-SD)
sent word of the cancellation.
McCarthy said later he had
called off today’s meeting be
cause he has a conflicting date to1
sit as chairman of an Appropri
ations subcommittee meeting. He
said he would poll the subcom
mittee on the idea of taking up
the other public hearings.
McCarthy had announced ear
lier that his subcommittee — al
ready busy with plans for a show
down inquiry into the row betwen
McCarthy and Army officials —
would meet Wednesday to weigh
plans for a double-barreled new
investigation.
Sen. Dirksen (R - 111) said he
doubted the subcommittee should
take up any other inquiry before
disposing of the McCarthy - Army
dispute.
Sen. McClellan <D - Ark), an
other subcommittee member, told
newsmen: “We are not going to
have any hearings as far as I’m
concerned that involve other in
vestigations until the pending job
is finished.”
Sen. Jackson (D-Wash) com
mented: “The committee can do
only one thing at a time. We are
now opei*hting under rules agreed
to unanimously by the seven mem
bers of the subcommittee which
foreclose hearings—public or pri
vate—until the pending contro
versy is disposed of.”
Sen. Potter (R-Mich) said: “I
think we better get at the busi
ness at hand.”
Escaped Convict To Die
For Slaying of Couple
FLORENCE, S.C., UP — An es
caped convict, accused of shooting
a dating couple and hacking off
the girl’s head, is under sentence
to die in the electric chair May 7.
The doomed man, Raymond
Carney, 38, Negro, was convicted
here yesterday of murdering H.
B. Allen, 22, and was sentenced
immediately.
Carney was tried for only one
of the robbery killings near Pam
plico, which police called two' of
South Carolina’s most brutal mur
ders.
Carney had pleaded innocent.
The sensational case was touch
ed off when Allen and Betty Clair
Cain, pretty 15-year-old Pamplico
schoolgirl, disappeared while on a
date Dec. 6.
The girl’s headless body was
found Dec. 7. Two days later, her
head, wrapped in a coat, and
Allen’s bo'dy were found in an
abandoned well about three miles
away. Officers said both had been
shot and quoted Carney as say
ing he hacked the girl’s head from
her body in an effort to conceal
the crime.
Ike Says Sen. McCarthy
Should Not Sit In
Judgment of Own Case
WASHINGTON, (#) —President
Eisenhower said today (a) there is
nothing in the current unemploy
ment situation calling for emer
gency action, and Ob) in response
to a question about Sen. McCarthy
that no man should sit in judg
ment on his own case.
Eisenhower was reminded by a
reporter that he had said March
probably would be the key month
in determining whether a slump
in business and employment
would l*e offset by new gains.
The President replied that he
had implied that March was a
significant month because there is
usually an upturn in business in
this month.
He said that always after the
end of war there was a drop in
production, adding that employ
ment went down at the same time.
One thing that is affecting the
situation, the President said, is
that Easter is late this year and
the ladies just haven’t been buy
ing yet.
He said, firmly however, that
nothing has yet developed which
would call for a slam bang emer
gency program being applied at
this moment.
As to McCarthy, the President
was asked his opinion of the sen
ator’s stand that he would not
vote on matters related to his In
vestigations subcommittee’s in
quiry into his dispute with Army
officials but would insist on the
right to cross-examine witnesses.
Eisenhower declined to express
a specific opinion on that, but he
said he was ready to go on record
as to the general situation.
When a man is party to' a dis
pute in America—directly or in
directly—he should not be per
mitted to sit in judgment.
Anchorage Plumbers
Stop Work In Demand
For 40-cents-an-hour Hike
ANCHORAGE, UP) — Plumbing
work in the Anchorage area was
all stopped up Tuesday as con
tractors laid off all except emer
gency service crews.
The action followed failure of
the APL Plumbers and Steamfit
ters Union to accept by Monday
midnight a 15-cent-an-hour wage
increase offered by the contract
ors. The union men want a 40-cent
increase. Current scale is $4.10
an hour.
Bob Barnett, member of the
contractors’ negotiating commit
tee, said negotiations will be re
sumed Wednesday night. Until
then, only plumbing work neces
sary for protection of life and
property will be done.
Slight Drop In Living Cost
WASHINGTON, iff) — The gov
ernment reported today that
slight price drops in a wide var
iety of items, including food,
brought a mo'dest decline in the
nation’s livings costs in mid-Feb
ruary.
The Bureau of Labor Statistics
said its index declined two-tenths
of one per cent between mid
January and mid-February to 115
per cent of the 1947-49 average.
This compared with the 115.4
peak last October.
Officer Pockets
$200,000 In Worn
Out Military Money
TOKYO, UP) — An Air Force
major entrusted with destroying
worn out military currency and a
former officer have been arrested
for allegedly pocketing some
$200,000 destined for the furnace,
the Air Force announced tonight.
Maj. Thomas Pate of Lo's An
geles, under house arrest here, has
helped recover most of the money,
Far East. Air. Forces said. No
charges have been filed against
him.
The FBI in Washington identi
fied the second man as Lowell A.
Logan, 24, of Springfield, Ohio.
Now a student at the University
of Iowa, Logan was arrested Sat
urday at Iowa City. He pleaded
innocent to a charge of embezzl
ing $20,000 in federal funds.
Pate has been finance officer
at Tachikawa Air Base 20 miles
southwest of Tokyo.
The Air Force said he admitted
swapping script of small denomi
nations for bigger currency and
then falsifying records to show
that the bigger certificates had
been destroyed.
The role allegedly played by
Logan was not announced.
When arrested, the major was
carrying $66,000 in U.S. currency.
Military personnel in Japan are
required to use only military
script while on duty in Japan.
Misuse of $200,000 would make
this case one of the biggest mili
tary currency scandals in Japan.
C. of C. and Government
Officials To Attend Mt.
McKinley Park Meeting
SEATTLE, UP)—Three executives
of the Seattle Chamber of Com
merce accompanied by two gov
ernment officials from Washing
ton, D.C., left today via Pan Am
erican Airways enroute to Fair
banks. They will go on to Mt. Mc
Kinley National Park Thursday
for the meeting of the All-Alaska
Chamber of Commerce. /
President Donald H. Yates of
the Seattle Chamber was accom
panied by Martin O’Rourke, man
ager of the Alaska Department,
and George E. Thomas, manager
of the chamber’s Washington,
D. C., office. Traveling with them
were Raymond Davis, assistant
U.S. Secretary of the Interior, and
John L. Farley, director of the
U.S. Fish & Wildlife Service.
Chamber representatives from
Ketchikan and Juneau are ex
pected to join the Seattle and
Washington, D.C., group enroute
to Fairbanks.
Norman Smith, 96, Who
Plotted Nome Townsite
Dies In Eureka, Calif.
EUREKA, Calif., IP—Norman R.
Smith, 96, one of the founders
and former mayor of Port An
geles, Wash., died late Monday.
Smith retired some 20 years ago
to Moonstone Beach near Eureka
after a life that took him to' the
Klondike and Alaska during the
gold rush days of the ’90’s.
He surveyed a route for the
Whitehorse - Yukon Railroad and
in 1900 plotted the townsite of
Nome, Alaska.
Government Adds 19 Commodities
To List Strategic Minerals Eligible
For Financial Exploration Aid
Hope For
National Minerals
Policy Soon
WASHINGTON, UP)—'The cabi
net committee working on pro
posals for a national minerals pol
icy is hopeful of completing its
recommendations in about two
weeks, a high government official
said Monday.
Secretary of the Interior McKay
is chairman of the committee.
Serving with him are Secretary of
State Dulles, Secretary of Com
merce Weeks, and Arthur S. Flem
ing, director of the Office of De
fense Mobilization.
An official said it was entirely
possible that some recommenda
tions which it is believed might be
of immediate benefit to the min
ing industry “may be made pub
lic as advance segments of the
report before the full report is
ready.”
President Eisenhower appointed
the committee last Oct. 26, saying
in a letter to McKay that “one of
the essential problems before our
country is the establishment of a
national policy relating to the
production aiid utilization of min
erals and metals.”
The President particularly took
note of depressed conditions with
in numerous metal mining dis
tricts and said they were “a mat
ter of grave national concern.”
250,000 Acres of Land In
S.W. Alaska Restored
To Public Domain
WASHINGTON, UP) — Secretary
of the Interior McKay announced
today the signing of an order re
storing about 250,000 acres of land
in southwest Alaska to the public
domain for possible future public
entry.
McKay said the order reduces
by about half the land area which
had been withdrawn in the Cold
Bay-Dolgcfi Island and Wide Bay
areas for use by the armed forces.
McKay said the restored land
is part of the area which has been
released by the Navy and that its
restoration to the public domain
does not disturb the remainder of
the military withdrawal.
The Bureau of Land Manage
ment said inquiries about the
lands should be sent the manager
of its office at Anchorage.
Alaska Starts Midnight
Flights From Seattle To
Fairbanks and Anchorage
SEATTLE, \ff>—Midnight flights
from Seattle to Fairbanks and An
chorage were started Wednesday
by Alaska Airlines.
Ralph W. Starkey, vice presi
dent in charge of traffic, said
Alaska Starliners are leaving the
Seattle-Tacoma International Air
port nightly at midnight. They ar
rive in Fairbanks at 6 a.m. and
in Anchorage at 8:45 a.m. The re
turn flights will arrive in Seattle
at 6:15 p.m.
WASHINGTON, UP)—The gov
ernment Monday added 19 com
modities to the list of 14 strategic
minerals which may be the sub
ject of exploration projects to
which the government contributes
financial aid.
The 19 added to the list have all
at some time previously been eli
gible for government help under
the program, which was started
in November, 1951, with the estab
lishment jJi the Defense Min
erals Exploration Administration
(DMEA).
Under the revised regulations
the government will share half
the cost of approved exploration
projects for bauxite, fluorspar,
graphite (crutible grade), lead,
zinc, and cadmium, as well as
those for chromium, copper, mo
lybdenum. The latter three have
been the only minerals in the 50
percent group since last Nov. 3.
The revision also added to the
group for which the government
will contribute 75 per cent of ap
proved explorations: antimony,
corundum, diamonds (industrial),
kyanite, mercury, monazite, rare
earth ores, quartz crystal, rutile,
brookite, talc, thorium and tin.
Continuing on the 75 per cent
list are: asbestos (crysotile only),
beryl, cobalt, columbium, manga
nese, mica, nickel, platinum group
metals, tantalum, tungsten, and
uranium.
Secretary of the Interior Mc
Kay’s announcement said Director
Arthur S. Flemming of the Office
of Defense Mobilization certified
that the expanded program “is es
sential to the national defense in
order to provide a better knowl
edge of domestic resources and to
less dependency on foreign sources
of strategic material.”
From the Office of the Governor
JUNEAU—Gov. Frank B. Hein
tzleman has been informed by
Secretary of the Interior Douglas
McKay that tin and antimony are
among fifteen minerals that have
been restored tor the list of strate
gic minerals for which federal
funds for exploration work may
be granted.
Tin and antimony will be eligi
ble for 75 percent government
participation, Governor Heintzle
man was advised.
The governor has pressed for
the return of these minerals to
the strategic list as a measure to
assist the mjning development of
the territory.
SYNGMAN RHEE ASKS U.S.
TO HELP UNIFY KOREA
SEOUL, (TP — South Korea’s
President Syngman Rhee today
called on the United States to
help unify Korea by force or
give him an ROK army which
needs no help “if peaceful efforts
fail.”
Only if one of these conditions
is met will South Korea attend
next month’s Geneva conference
on Korea and Indochina, Rhee de
clared.