THE NOME NUGGET
Published Monday, Wednesday and Friday by the
NOME PUBLISHING CO.
NOME, ALASKA
Telephone: Main 125 P.O. Box 618
$1.50 PER MONTH $16.00 A YEAR
E. P. BOUCHER . Managing Editor
CLINTON GRAY .... Production Manager
Entered as second class matter October 14. 1943, at the
postoffice at Nome, Alaska, under the Act of March 3, 1879.
A LOOK BEHIND THE BLUEPRINT CURTAIN
FAIR TAXATION FOR ALASKANS
(Fairbanks News-Miner)
We have heard a good deal about “tax incentive”
legislation, but Byron Gillam, of the Fairbanks Cham
ber of Commerce, introduced a new note when, at the
All-Alaska meeting at Juneau last month, he called for
“fair taxation for all Alaskans.”
He alertly pointed out that Alaskans were paying
an extra penalty tax-wise, because of the graduated
tax that applies here where costs are compounded
thereby putting Alaskans in the higher dollar volume
brackets.
He cited higher costs in living and construction
and stated that an Alaskan had to make two or three
times more than a stateside resident in order to build
a home or commercial building. Because of the differ
ential in living costs many workers take their earnings
and migrate to a lower cost of living area for the win
ter instead of remaining in Alaska. This does not tend
to build toward a permanent population.
We agree that Alaskans are not asking for special
concessions — only those that will give us an even
break in order to compete with other areas and present
an opportunity to develop the territory.
Puerto Ricans pay no federal income tax. Special
tax privileges have been given to residents of the
Virgin islands and Guam. The oil industry is allowed
a 25 per cent forgiveness for depletion.
Why not FAIR taxation for Alaskans?
TAXES AND EISENHOWER
President Dwight D. Eisenhower was vividly re
minded of the steepness of taxes recently when Con
gress refused to make his $50,000-expense allowance
tax-free. Though former President Truman had re
ceived his expense allowance tax-free and even though
he recommended to Congress that the same exemption
be granted to Eisnhower, Congress refused to make
Ike’s expense account tax-free.
President Eisenhower’s $50,000 - expense account
is thus reduced from $55,000 to $11,000, since about
$39,000 of it will be paid to the Federal government
in taxes. It seems fairly obvious that a $39,000 tax*
out of a $50,000 sum is excessive. With American boys
dying in Korea, such a tax rate can temporarily be
justified. However, in ordinary times, there is no justi
fication for such a rate and the danger in establishing
such rates is that removing them always proves more
difficult than establishing them.
Popular Election For
Party Committeemen
(Continued from Page One)
proposal would put selection of
I the top rank party figures “back
' to the old gag rule system be
hind closed doors.” He contended
that Alaska had an open election
process until the Democrats came
into power.
Rep. Waino Hendrickson, Ju
neau Republican, after voting
with the majority, admonished the
House that he hoped there would
not be such a rush in the future
on such legislation.
While the House pushed thru
the anti - White bill, the intra
party friction over the Republi
can Central Committee’s endorse
ment of Robert Reeve for Alaska
governor continued to simmer.
Reeve, who cast a proxy vote
at the committee session, issued a
statement Monday at Anchorage.
It said:
“After a vote of 9-5 by the Cen
tral Committee, I refused to ac
cept the nomination unless I was
accorded the support of the dis
senting five.
Mrs. Edith Bullock, Jack Ser
man and Mike Stepovich then
preferred me their support if I
were to accept the nomination. It
was upon this condition I ac
cepted.
“I did. not seek the nomination,
and further, I am a no deal, I
repeat, a no deal man and I am
under obligation to no one if
designated governor.
“I will be guided strictly by the
will of the legislature, the will
of the people and the will of the
Central Committee.”
Cutter Reports Oil Slick
And Dye Markers Where
British Plane Ditches
NEW YORK, UP) — The Coast
Guard Cutter Campbell reported
to headquarters today it has sight
ed an oil slick and dye markers
near the scene where a British
troop-ferrying aircraft is missing
with 39 persons aboard.
The Campbell said it has “sight
ed several large area oil slicks
| and dye markers” on the North
Atlantic about 120 miles south
west o'f the position from which
the plane sent out an SOS early
Monday. The Coast Guard esti
mated that area was between 250
and 300 miles east of Argentina,
Newfoundland.
The plane, a four-engine York
operated by Skyway’s Ltd., of
London, was bound for Gander,
Nfld., from the Azores.
The Campbell said it was
searching the area ,in the midst
o'f snow squalls.
—
Reindeer and Muskox
Reserve Near Fairbanks
Returns to Public Domain
WASHINGTON, UP) — Secretary
of the Interior McKay today an
nounced that 5,015 acres of land
near Fairbanks, Alaska, part of
an area reserved in 1927 and 1930
for a reindeer experiment station
and a muskox reserve, have been
returned to the public domain.
A total of 5,185 acres was re
served for the two purposes, Mc
Kay said, and under his order the
remaining 170 acres is being set
aside for use by the Air Force.
McKay said that about 840
acres of the land being restored
to the public domain will be
opened for settlement under the
Small Tract Act. This will be done
under an order to be issued by
Lowell M. Puckett, regional ad
ministratqr of the Bureau of Land
Management at Anchorage. Vet
erans will have a 91-day prefer
ence period in which to file for
the tracts.
Japan Takes Hope From
Implied Repudiation Of
Yalta Agreement
TOKYO, UPl — President Eisen
hower’s implied repudiation of
the 1945 Yalta agreement with.
Russia has raised hopes here that
the Kurile Islands and southern
Sakhalin might some day be re
turned to Japan.
The territories were handed
over to the Soviet Union by the
Yalta Agreement as a condition
of Russia’s entry into the war
against Japan in the final weeks
before surrender.
In his state of the union mes
sage to Congress, Eisenhower
called for a declaration making
it clear that “this government
recognizes no kind of commit
ment Contained in secret under
standings of the past with foreign
governments “which permit en
slavement” of any peoples. Pre
sumably he included the Yalta
Agreement in that category.
Dog Teams Beat ’Copter
To Rescue of Bush Pilot
FAIRBANKS, W)—An Air Force
helicopter pilot seeking a missing
bush flier and two passengers
ended his search Monday almost
as soon as it began.
The ’copter pilot spotted two
dog teams in the snowy wilder
ness west of here and landed to
inquire of the mushers whether
they’d seen any trace of the lost
plane.
The question wasn’t needed.
Riding in one of the sleds was
the bush flier, Dick Jones of the
Nenana Air Service. Jones said he
crash landed his Piper Pacer at
Montana Creek while attempting
a landing.
Neither he nor his passengers
were hurt. They spent Sunday
night in trappers’ cabins at Mon
tana Creek, and the next day the
trappers .harnessed up two dog
teams to take Jones to Min to on
the Tanana River for aid.
The helicopter picked up the
two passengers at Montana Creek
Tuesday.
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Eisenhower’s Failure To
Endorse Alaska Statehood
Is Labeled Partisan Move
WASHINGTON, (ff) — Alaska
Delegate Bartlett views the fail
ure of President Eisenhower to
endorse statehood for Alaska in
hi$ state of the union message
Monday, while approving it for
Hawaii, as a partisan political
move.
“Naturally I am grievio'usly dis
appointed,” Bartlett told a re
porter. “That disappointment will
be shared by all Alaskans, Repub
licans and Democrats alike, who x
are for statehood.
“For the first time in all the
years Hawaii and Alaska have
worked together, it has been made
a partisan issue.”
Sen. Magnugson (D-Wash), said
he, was disappointed the President
singled out Hawaii for statehood,
but not Alaska.
He added that he thought the
speech was “a good appraisal of
-our natural resources and how
they must be handled, which
showed the President has changed
his ideas somewhat since the cam
paign speech on resources he
made in Boise.”
The President’s speech sparked
a new drive in Congress on the
Hawaii Statehood Bill.
Senator Cordon (R-Ore) told a
reporter the Hawaii Statehood
Bill will be “Item No. 1” on the
agenda of the Territories sub
committee of the Senate Interior
Affairs Committee.
Fog Blankets San Francisco Area
SAN FRANCISCO, Iff)—For the
third successive day San Fran
cisco is blanketed under zero-zero
fog.
Most Bay area airports were
closed. Ship sailings were can
celled. Commuter trains were off
schedule and the clanging of auto'
bumpers echoed through the
murky streets.
The Panama Canal runs north
and south through much of its
length.