IS NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVI No. 86 NOME, ALASKA, FRIDAY, JULY 23, 1954 Per Copy—15?
Survey Recommends Shifting
Alaska Native Service Schools
To Territorial Government
-<
Examining Committee To
Hold Hearings On Health
Dept. In Nome This Week
Senator Howard Lyng, who has
been in Anchorage for meetings of
the Legislative Examination . and
Investigating Committee, will be
back in Nome to conduct hearings
on the Territorial Department of
Health Saturday and Sunday af
ternoons.
He will be accompanied by
Herald Stringer, chairman of the
committee, and Wm. Moran of
Juneau, special full-time staff in
vestigator.
Other hearings are scheduled in
the Second Division and they will
be announced by the committee
on their arrival in Nome.
The committee stated they are
not trying to find people who are
antagonistic but are attempting
to get a fair and impartial irn
quiry into the operations of this
agency in the territory. The ses
sion will be closed so that wit
nesses will feel more free to ex
press themselves.
Other agencies already investi
gated are the Alaska Housing
Authority, Alaska Merit System,
Employment Security, and Board
of Aeronautics and Communica
tons.
Kadow To Testify Next
Week Before Joint Probe
Of Loans To U.S. Tin
WASHINGTON, UP) — Senate
House investigators said H. R.
Fischnaller, a former president of
the U.S. Tin Corp. of Alaska will
testify at a public hearing today
in their inquiry into alleged ir
regularities in government loans
to the firm.
The joint committee on defense
production said Kenneth Kadow,
another former president of U.S.
Tin, has been summoned from Al
aska to testify July 28 at a public
hearing on the loans.
The announcement by Sen.
Capehart said S. H. Loraine, re
gional director of the Bureau of
Mines at Juneau, will be called
at a date not yet determined to
explained his recommendations on
the making of the loans.
Cost of Living Index Up
To 115.1 Pet. of 1947-49
WASHINGTON, UP) —The gov
ernment reported today that ris
ing grocery prices forced the cost
of living up cme-tenth of on© per
cent in June.
The increase was small but it
was the second rise in as many
months and edged the index kept
by the Bureau of Labor Statistics
close to the p©ak set last October.
BLS announced the June in
dex was 115.1—meaning the cost
of living was 115.1 per cent of the
1947-49 average.
The record set last October was
115.4.- The June level is one-half
of one per cent higher than a
year ago and 13.1 per cent above
the June, 1950 start of the Korean
war.
> WASHINGTON, (®—Undersec
retary of the Interior Ralph A.
Tudor today announced approval
of a survey team’s report on de
partment activities in Alaska —
including its proposal to shift all
Indian Bureau schools to the ter
ritorial government.
The team was appointed to de
termine how the department
could improve administration of
its operations in Alaska. Tudor
is in charge of the department in
the absence of Secretary McKay.
The reorganization survey
group was headed by Roy B. Ear
ling of Seattle, a mining consult
ant.
The team considered but re
jected the idea of recommending
appointment of an assistant secre
tary for Alaska.
Instead, in a move to achieve
closer coordination of activities,
it recommended that the Alaska
Field Committee be reactivated
under the direction of a full-time
head. And it suggested considera
tion of a central administration
service organization and a con
solidated legal staff in the terri
tory under the supervision of the
department’s solicitor.
The Alaska Field Committee
consists of the heads of the sev
eral departmental agencies in Al
aska and the governor in the past
served as chairman. The survey
team recommended that the head
of the new group not be a mem
ber of the governor’s staff.
Major ANS Recommendations
Major recommendations relat
ing to the Indian Bureau, general
ly known in Alaska as the Alaska
Native Service, included:
1. That education functions,
school buildings and equipment of
the ANS, including Mt. Edge
cumbe Institute and Wrangell
Boarding School, be turned over
to the Territorial Department of
Education as soon as plans can
be made and financial arrange
ments settled.
2. That the hospitals and re
maining health services of the
ANS be turned over to the Pub
lic Health Service under legisla
tion now pending in Congress or
under other applicable laws.
3. That direct welfare pay
ments of the ANS be discontinued
and its other welfare work turned
over to the Territorial Depart
ment of Welfare.
4. That a thorough study be
made of the credit (loan) pro
gram and a detailed plan be pre
pared for its reorganization and
future operation.
Recommend ARC Survey
It also said a management and
cost survey of the Alaska Road
Commission’s activities and op
erations should be made by some
outside authority.
The team proposed that walrus
hunting be permitted by both
whites and natives subject to pro
posed new regulations including
a $50 non-resident license fee and
an annual bag limit of two bull
walrus for non-residents and five
walruses for residents.
\
/
Marathon Debate
In Senate On GOP
Atomic Energy Bill
WASHINGTON, UP) — A GOP
move to bar use of Atomic Energy
Commission funds for construc
tion of commercial power plants
today shot new heat into the
marathon Senate debate on the
administration’s atomic bill.
Sen. Hickenlooper, floor man
ager for the bill, proposed the ban
even as GOP leaders were trying
resperately to force an end to the
talkathon, which for all practical
purposes, has gone on continuous
ly since 10 a.m. Wednesday.
By a 45-41 vote Thursday, the
Senate adapted an amendment
which would authorize the federal
government to go into the com
mercial production of atomic
power.
Critics cheered this as a victory
in locking the door against the
“private power monopoly.”
They said it would authorize the
AEC, the TVA, or other govern
ment agencies to get into this
field.
Sen. Knowland of California,
the Republican floor leader, made
a formal move to limit debate, and
so break what he calls the “fili
buster” against the bill, but there
appeared to be little optimism
among the Republicans that it
would succeed.
Across the Capitol, meanwhile,
the House began consideration of
its own atomic bill with the veiled
suggestion of Rep. Sterling Cole
(R-NY) that it avoid the Senate
example of marathon debate.
Cole, chairman of the Senate
House Atomic Energy Committee,
expressed hope ‘that the congress
men would give the measure
“steady, full and deliberate de
bate” without side excursions
“into realms having nothing to
do with it.”
McKay Group Takes
Sightseeing Trip of Nome
After Top-of-World Flight
Secretary Douglas McKay and
party arrived here today at 12:15
a.m. after an eventful day which
took them to the top of the
world, Barrow, Alaska, Kotzebue
for dinner, and a short peek into
tomorrow as they flew over the
International Date Line cm their
way to Nome, covering 1,500 air
miles.
In the party were Douglas and
Mrs. McKay; William Strand, di
rector of the Office of Territories;
Larry Smyth, information officer
of the Dept, of Interior; Mr. R. E.
Kalbaugh, manager of the Alaska
Railroad, and his wife; S. G.
Ghiglione, commissioner of Roads;
Alene Phillips, executive assistant
secretary.
Accompanying the party are
Mr. and Mrs. Lawrence Davies,
East Coast correspondents for the
New York Times; Robert Schul
man, head of the northwest bu
reau of Time; Burton Glinn, Life
photographer; and L. Richards of
the Oregonian.
The party was taken directly to
the Wallace Hotel for a well
earned rest. A sightseeing trip
was planned for this morning,
followed by a reception at 11
o’clock and luncheon at twelve.
Sec. McKay’s Visit to Northwest
Alaska Paves Way For A Better
Understanding of Area’s Needs
Douglas McKay, Secretary of the Interior, accom
panied by his wife and party, arrived Nome today on
an official visit.
McKay, who was appointed to the position of
Secretary of the Interior just a year ago on July 21,
1953, will be the first man in his office to actually
visit this part of the territory.
Secretary Krug visited Barrow several years ago
and flew over Nome for some time, but the weather
made it impossible for him and his party to land al
though elaborate plans had been made for his enter
tainment.
Secretary McKay has served his state as senator
for four terms and as governor; served his country
in the 91st Infantry Division in World War I and in
a Service Command unit during the last war; and
is Past Commander of the American Legion in Salem,
Ore. He has served his community in many ways,
including the presidency of the Chamber of Commerce.
The high government position he now holds is
important to Alaska and vital to its growth. His trip
to Alaska shows his interest and sincerity, for only
by seeing its vastness first hand can he visualize why
Alaskans keep plugging for roads and more roads.
Only by talking to Alaskans on the northwestern
frontier and by flying close to Siberia can he sense
and see the nearness of our Siberian neighbor and the
urgency for coastal defense.
Only by seeing Alaskans in their own habitats can
he learn they are loyal Americans and, just like the
people back home, striving to make a permanent and
better place for their children and their children’s
children.
Sec. McKay has expressed desire of meeting as
many Alaskans as possible. Only by shaking their
hands and exchanging greetings can he grasp the
seriousness with which they hold their citizenship
and their earnest desire to have voting privileges
like their brothers living in the other 48 states.
All these things Douglas McKay is taking the
trouble and time to find out on his first visit.
Welcome to Nome and come again soon.
Max Lieb, Bethel Businessman,
Nominated for ANICA Manager
. _(
British Airliner Crashes
Near Red China Island,
11 of 18 Aboard Missing
HONG KONG, UP) — A British
airliner with one of its four en
gines afire crashed today near the
Chinese Communist island of
Hainan and 8 of its its 18 abroad
were rescued.
The eight were rescued by a
U.S. Navy PBY flying boat, which
had been summoned to the res
cue by the SOS of the Sky
master.
The body of a Chinese woman
passenger was taken from the
waters of the South China Sea.
Witnesses on another plane said
Communist (boats swarming out
from Hainan picked up three sur
vivors. But the fate of the miss
ing was in doubt.
The big British Skymaster sank
within a minute after it struck
the waters, and the search for
additional survivors was aban
doned.
> The name of Max Lieb, Eskimo
of Bethel and manager there for
the Northern Consolidated Air
lines and a businessman in that
area, has been nominated for the
position of manager of ANICA by
Nicolai E. Nicolai, director of
ANICA from the village of
Kwethluk.
Recently the ANS, now under
the leadership of William Olson*
asked for the endorsement of Leo
E. Murphy, a non-Alaskan, for the
position, but apparently the di
rectors were not pleased with the
unsolicited choice of an outsider
who does not know Alaska.
In Nicolai’s nomination he
stated:
“The Alaska Native Service has:
promised to submit a name to us
in the near future for ANICA
manager so that our organization
can again be operated like any
other private business. However,
we directors in this area have
been talking things over and have
decided that we should submit our
(Continued on Page Two)