m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LV No. 128NOME, ALASKA, WEDNESDAY, OCTOBER 28, 1953Per Copy—15^
Nome Merchants Stress Second
Division’s Dependence On Air
Transportation at CAB Hearing
Three of Name s leading mer
chants on their own time and at
their own expense as members of
the Chamber of Commerce, at
tended the recent CAB hearings
at Anchorage in the interest of
better service for Nome and the
surrounding area. They reported
yesterday at the Chamber of Com
merce luncheon.
One of the most interesting fac
tors which was stressed by Dewey
Goodrich, president of the cham
ber, was that members of the
Civil Aeronautics Board did not
realize the COMPLETE DEPEN
DENCE of the people of Nome
and the area on air transportation.
Goodrich stated in his address:
“If we use a factor of only ten
or 12 times average air transpor
tation usage compared to the Uni
ted States, it is evident that the
Nome area provides an effective
air transportation demand equiv
alent to a city of 75,000 to 100,000
persons by U.S. standards.
“Thus, when judging the air
transportation needs of the Nome
area, we should properly be think
ing in terms of a city with a popu
lation of at least 100,000 persons.
“Because of the near non-exist
ence of roads in the Second Divi
sion, much time is consumed trav
elling from isolated mining camps
into Nome, unless a passing bush
plane is contacted. If replacement
parts are needed for machinery,
which are not available in Nome,
the parts must be shipped from
the States. A week’s delay may
not seem much to yo‘u gentlemen
from the States or from cities that
have daily contact with manufac
turing industries, but around
(Continued on Page Three)
Eisenhower Still Willing
But Not Hopeful Of
Meeting With Malenkov
WASHINGTON, UP) — President
Eisenhower said today it would
be perfectly hopeless for him to
take part in a meeting for Soviet
Premier Malenkov unless he
knows Russia has an honest pur
pose for such a meeting.
He added that Russia could show
such honesty in any of a hun
dred ways.
The President’s news confer
ence statement was in response to
questions about a new Russian
hint that Premier Malenkov may
be ready for peace talks with the
western chiefs of state.
The President also repeated
what he has said before—that
regardless of handicaps or in
convenience he would do anything
in the world he thought would
advance the cause of peace.
He qualified that again by say
ing there must be an indication
it would produce results in good
faith.
The President also told report
ers:
1. United States economic aid
to Israel will be resumed since
Israel has agreed to suspend work
on a hydro-electric power pro
gram which Arab neighbors
charged would divert Jordan Ri
ver water to their injury.
2. There exists no plan of any
kind for reducing the armed
forces of the United States any
where.
3. It is conceivable that he will
make some general statement urg
ing the election of a Republican
congress next year, or even that
he may give an incidental pat-on
the-back to some individual can
didates. But he reiterated a pre
vious stand that he will not go
into any state or congressional
district to campaign.
4. He hopes and believes cattle
prices have reached the bottom
and are on the way back up. In
that connection, the President
said only a future drought or
other crisis would justify calling
a special session of Congress to
deal with the farm problem.
FWS Officials Urge
Alaska Educators Teach
Course in Conservation
JUNEAU, L?) — Fish and Wild
life Service officials told Alaska
educators yesterday they believe
a course in conservation of nat
ural resources should be intro
duced in the territory’s schools.
Clarence Rhode, the FWS re
gional director, and Urban C.
Nelson, Wildlife biologist, spoke
at the opening session of the an
nual meeting of school superin
tendents and Department of Edu
cation executives.
Nelson, who appeared for the
Alaska Territorial Sportsmen’s
Association of Juneau as well as
for the FWS, said the association
is willing to contribute funds to
ward such an educational pro
gram, particularly in the Juneau
area. Both Nelson and Rhode said
they are sure other sportsmen’s
groups in Alaska would aid in
their districts.
The Alaska Game Commission
turns over $175,000 annually to
territorial schools from the sale
of hunting and fishing licenses,
fines for game law violations and
sales of confiscated items.
They were told the department
has been hampered by lack of
time, personnel and funds for
starting such a course of study in
conservation.
The meeting of the school heads
will run through Thursday, cover
ing a wide range of school prob
lems.
Mt. Trident Active Again
KODIAK, Lffi — The Navy re
ported Tuesday that Mt. Trident
in the Mt. Katmai National Monu
ment area across Shelikof Strait
from Kodiak Island has shown re
newed volcanic activity.
Fliers in a Navy patrol plane
sent to the area said fresh snow
has been discolored and increased
smoke and steam were observed.
Residents of a native village on
Larsen Bay, on the south side of
Shelikof Strait, reported a small
amount of ash had fallen there.
The Navy is continuing a patrol
over the region.
/
Meetings Aim To
End Chiseling On
Alaska U.C. Funds
JUNEAU, UP) — The first of a
series of meetings aimed at end
ing “chiseling” by workers who
speakers said tap Alaska’s un
employment compensation fund
while wintering in the states, got
under way here Tuesday.
Alaska labor and industry rep
resentatives attended the meet
ing called by the Employment
Security Commission. Commission
members said its purpose was to
find ways and means of prevent
ing eventual insolvency of the
fund.
Larry Moore, of Anchorage, ex
ecutive director in Alaska for the
Assn, of General Contractors, ap
peared as spokesman for 70 con
tractors doing work in the terri
tory.
Moore maintained it was im
practical to apply seasonality to
contracting and construction
work.
He said contractors employ 20
to 25 thousand men during the
construction season and 5 or 6
thousand all year.
Alaska’s only major industry
still having a seasonal rating is
the canned salmon industry. The
issue basically is this: If an in
dustry is decreed to be seasonal,
the workers in it cannot draw
benefits when they lose their jobs
at the end of the season. They
get unemployment benefits only
if they can’t get jobs in the in
dustry when the next season rolls
around.
In contract, if work is listed as
nt/n-seasonal, such as on construc
tion projects, a worker can draw
U.C. benefits if he loses his job
(Continued on Page Two)
Community Clubs Renew
Appeal For Increased Gas
And Terri. Income Taxes
ANCHORAGE, tfV-The Central
Alaska Council of Community
Clubs today renewed its appeal
for a special session of the terri
torial legislature to increase the
territory’s gasoline and income
taxes.
The tax hikes, requested in a
letter to Gov. Heintzleman, re
quested that personal property
taxes be abolished.
The gasoline tax should be in
creased, the Council said, “to give
us sufficient revenue to partici
pate in our own road building to
an extent we cannot be criticized
by the federal government when
it comes to allocation of road
funds.”
Donald C. Hume, chairman of
the Council said it went on rec
ord favoring a “2 per cent in
crease in the territorial income
tax, abandoning the personal pro
perty tax.”
“We wish to disassociate the
territorial tax from the federal
tax,” he said “so that the com
plete amount will remain in the
territory.”
A further action of the Coun
cil, Hume reported, was to ex
press a preference for an increase
in the income tax over a hike in
I the sales tax.
• i
Karl Dewey Appointed
Terri. Tax Commissioner
WASHINGTON, HI — Governor
Heintzleman yesterday announced
appointment of Karl F. Dewey of
Nome as Territorial Tax Com
missioner, succeeding the late M.
P. Mullaney. Dewey has been em
ployed by the U.S. Smelting, Re
fining and Mining Co.
Mr. and Mrs. Dewey who have
made their home here and have
been active in civic groups for
several years, are planning to
leave for Juneau next week.
Eisenhower Appoints
Three Republicans As
U.S. Marshals For Alaska
WASHINGTON, HI — President
Eisenhower yesterday appointed
three new U.S. marshals for Al
aska—all Republicans.
The appointments, subject to
approval when the Senate con
venes in January, are:
Claire A. Wilder, 60, of Peters
burg, a former newspaper editor
and publisher, to be marshal for
Division No. 1.
Fred S. Williamson, 57, of An
chorage, a construction man, to
be U.S. Marshal for Division 3.
Albert Fullerdorsh, Jr., 42,
cargo superintendent of Alaska
Airlines, at Fairbanks, to be mar
shal for Division 4.
Care of Juveniles, Mental
Patients are Big Problems
Of New Jail System
JUNEAU, (j9R — Roy Casey,
superintendent of the newly or
ganized Federal Jail System in
Alaska, said here Tuesday one of
its acute problems is adequate
care for juveniles and the men
tally ill vyho come under its juris
diction.
Casey said federal jail detention
is no way to handle such cases
and a better means should be
found.
Casey was in Juneau enroute to
his Anchorage headquarters after
an inspection of federal jails in
Ketchikan, Wrangell and Juneau.
He said he found the jails in this
district conducted in a satisfac
tory manner.
Cost of Living Index Again
Goes Up, 7th Straight Rise
WASHINGTON, Ufi — The cost
of living, pushed upward mainly
by higher rents, clothing costs and
medical expenses, set another rec
ord last month, the government
reported today.
The Labor Department’s Bu
reau of Labor Statistics announ
ced that its consumer price in
dex reached 115.2 in mid-Septem
ber, a rise of two-tenths of 1 per
cents over the record August
level.
This was the seventh straight
monthly increase.
The index is a composite aver
age of retail prices paid by the
American household for basic
goods and services as compared
with 1947-49.
The Bureau said a decline in
retail food prices between August
and September was not enough to
offset higher prices for all other
types of consumer goods and ser
vices.
Federal Employes
To Get Tax Rebate
On Differential Pay
WASHINGTON, UP) — Employes
of the , federal government sta
tioned in Alaska, Hawaii. Puerto
Rico and the Virgin sllands were
exempted Wednesday from pay
ment of U. S. income taxes on
their cost of living salary differ
ential.
Paid under legislation enacted
by Congress in 1948, the bonus is
equivalent to 25 per cent of an
employe’s base salary in Alaska,
20 per cent in Hawaii and, since
July, 1953, 15 per cent in Puerto
Rico and the Virgin Islands. Em
ployes in the Puerto Rico and the
Virgin Islands received 25 per
cent prior to this year.
Internal Revenue spokesmen
declined, Delegate Bartlett said,
to estimate the amount of re
funds which would be available
to employes. He said, however,
the sum probably would run “into
the millions.”
Refunds could be claimed,
Bartlett said he was informed,
within three years of the filing of
an income tax return or within
two years of payment of the tax.
Aimer Peterson Is Leading
Contender For Second
Division Judgeship
ANCHORAGE, UP) — The Times
says Aimer J. Peterson, Anchor
age attorney, has the endorsement
of the Republican Central Com
mittee and generally is recognized
as the leading contender for the
job of federal district judge at
Nome.
The report, in Tuesday’s Times,
said William C. Olson, who ap
plied for the job two weeks ago,
still has strong backing. Another
candidate considered to be a pos
sibility is Walter Hodge, Cordova
attorney.
States Willing To Take
Over Jurisdiction Of
Indians—At a Price
CARSON CITY, Nev., UP) —
Most states are willing to take
over jurisdiction of Indians from
the federal government—but only
if the federal government pro
vides “adequate remuneration.”
This was indicated here Tues
day by delegates to the 6th annual
meeting of the Governors’ Inter
state Indian Council.
Several delegates took this
stand in reporting on Indian af
fairs in their own states. Most of
them agreed that the withdrawal
of the federal government from
control of Indian affairs will
cause problems that the states will
be hard put to handle without
outside help.
NEW YORK, UP) — Questioning
of convicted atom spies Harry
Gold and David Greenglass by
McCarthy Senate subcommittee
probers was postponed Wednes
day for 24' hours.
Staff members of the Senate
Investigations subcommittee an
nounced delay of their visit to the
pair at Lewisburg, Pa., federal
penitentiary, when a heavy morn
ing rain kept their plane grounded
in New York.