m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVI No. 10F NHME. aLh^A, **Kiflpr#.>Ay', SEPTEMBER Uf 1954 Per Copy—15^
Traditionally GOP
Maine Elects
Deni. Governor
PORTLAND, Maine, (fl — Tra
ditionally Republican Maine chose
a Democrat for governor in Tues
day’s first-in-the-nation election
and GOP leaders said defeat of
Republican Gov. Burton M. Cross
was due to dissension in party
ranks.
Edmund S. Muskie, 39-year-old
lawyer and Democratic National
Committeeman, turned back
Cross’ quest for re-election in the
first major Democratic victory in
Maine in 20 years.
The voters also sharply cut the
margins of victory generally ac
corded other top Republican can
didates while re-electing U.S. Sen.
Margaret Chase Smith and three
U.S. representatives, all of whom
bear the GOP label.
It was the first defeat in a
long political career for Cross, a
51-year-old florist.
In modern times, no other GOP
governor has ever been denied a
second term.
Cross, a mild-spoken, suave and
not very colorful campaigner,
lost to a tall, curly-haired force
ful speaker popular in Republi
can ranks while he served as
Democratic minority leader of the
Maine House in 1945.
Cross’ first administration was
termed a “bland dictatorship” by
one Republican editor in an edi
torial.
Republican National Commit
teeman Fred C. Scribner Jr., at
tributed Muskie’s win to split
ticket voting by Republicans.
“The Republicans elected Mus
kie, there’s no question about it,”
said Scribner.
Nationalist Ships
Shell Lighthouse;
Reds’ Ships Sunk
TAIPEH, Formosa, Thursday,
Sept. 16, (ffi—The lighthouse of the
Red port of Amoy was demolished
yesterday by Nationalist warships
in he ceaseless attacks on the
mainland, the Taipeh defense
ministry said.
Great clouds of smoke also rose
from Chingyu Island, near Amoy,
after a naval shelling. A commu
nique said war planes in undis
closed force sank three Red craft
near the Nationalist Island of
Quemoy and killed numerous
Communist soldiers in strafing
runs.
The ministry said planes and
warships had sunk 180 military
junks, 4 gunboats and 22 motor
ized boats since the “vest pocket
war” broke out Sept. 3 around
Quemoy, 110 miles across For
mosa Strait from Formosa. Que
moy is seven miles from Amoy.
Nationalist operations, however,
have slackened, and it is likely
that future attacks will be of a
routine nature barring unforeseen
developments.
The interior ministry’s Tato
News Agency carried an uncon
firmed report that the Communist
5th Marine Division had been
brought up early this month from
the Canton area to the country
side back of Quemoy.
Nixon and Martin
Start Campaign'
Tours Over Nation
WASHINGTON, (#1—'Two of the
Republican Party’s top campaign
ers, Vice President Richard M.
Nixon and House Speaker Joseph
W. Martin Jr., took off in char
tered planes today for intensive
speaking tours over the nation,
spurred by a frank admission the
GOP is “running scared.”
Both Nixon and Martin said
thfey are confident the Republi
mans can hold control of Congress
in the November voting. But the
Vice President conceded his party
“might be behind” at this time
and said a lot of work is needed
in the next seven weeks.
Nixon said the Republican set
back in Maine on Monday might
turn out to be a blessing in dis
guise for the party. He said “there
is apathy and lethargy in some
parts of our organization” and the
Maine results should help to dis
pel this.
The two party leaders spoke
briefly at a breakfast at National
Airport given by Leonard W.
Hall, Republican national chair
man, for newspapermen and for
members of the two traveling
parties.
Nixon then left for Columbus,
Ohio, the first stop of a nine-day
tour during which he will make
appearances in 13 cities. He
speaks in Columbus tonight.
Martin left for Newark, N.J.
There are 16 other cities on his
schedule, which will take him as
far as the Pacific Coast.
Hearings on Abolishment
Of Alaska Health Ships
Set for This Month
ANCHORAGE, (jT)—A recom
mendation that the Alaska Health
Department abolish its health
ships in favor of aerial service to
remote areas will be considered at
public hearings this month in An
chorage and Juneau.
Rep. Herald Stringer, chairman
of the Legislative Examination,
Investigating Committee, an
nounced the hearings for Anchor
age Sept. 17-18 and Juneau Sept.
20-21.
Stringer said the purpose of the
sessions would be to identify Al
aska health problems, determine
what is being done to meet them
and obtain suggestions for im
proving services.
The recommendation to abolish
health ships to remote areas was
recommended recently by the
committee, he added.
Tunney Predicts Marciano
Will Whip Ezzard Charles
In Title Bout Tomorrow
CLEVELAND, OP)—Gone Tunney
predicts Heavyweight Champion
Rocky Marciano will whip Ezzard
Charles tomorrow night in their
title bout.
Tunney, here to address the
National Boxing Association’s an
nual convention, said he believes
Rocky packs too much “artillery”
for Charles.
The fight, which was scheduled
for tonight at Yankee Stadium
was postponed to tomorrow night
because of rain.
Administration
Boosts Deficit to
Over $4 Billion
By FRANK O'BRIEN
WASHINGTON, UP)—'The Eisen
hower Administration has boosted
the deficit it foresees for this fis
cal year to nearly 434 billion
dollars, even while slashing a
new 3 billions from major securi
ty programs.
But it has upped planned out
lays in a dozen civilian fields
where they could be a spur to
production and employment.
The annual revision of spend
ing and income estimates for the
current fiscal year, which began
July 1, was made public last night,
indicating these over-all changes:
Total spending was reduced
from the $65,600,000,000 planned
when President Eisenhower sub
mitted the fiscal 1955 budget to
Congress last January to a new
estimate of 64 billions. This com
pares with spending of $67,610,
000,000 in the fiscal year which
ended June 30.
The estimate of net budget re
ceipts was cut from $62,700,000,
000 in January to $59,300,000,000.
Principal factors contributing to
the reduction were congressional
tax cuts, bigger-than expected
refunds, and a sharp drop in cor
poration tax payments. Collec
ions last fiscal year came to $64,
600,000,000.
Since the 3,400,000,000 dip in
expected revenues outweighed the
$1,60,000,000 cut in spending, the
administration’s estimate of its
probable deficit at the end of the
fiscal year rose from $2,900,000,
000 predicted in January to $4,
700,000,000. In fiscal 1954, red ink
spending came to 3 billions.
However, Secretary of the
Treasury Humphrey told a news
conference that the administration
would try “every day, every week
and every month” to chop spend
ing where it would hurt neither
defense nor the economy.
Salmon Bonanza
In Adams River
t
Ends Tomorrow
VANCOUVER, B.C., MV-'The
total number of salmon caught by
United States Canadian boats in
the fabulous West Coast Adams
River run in northern Puget
Sound was placed at 10,000,000
last night.
The silvery bonanza will end
tomorrow. A 10-day closure will
be placed on the Fraser River
fishing to allow the main body of
sockeye to surge up to spawning
grounds in Adams River and
Adams Lake.
“That potential $32,000,000 haul
isn’t peanuts in anybody’s busi
ness,” said Lloyd Royal, director
the International Pacific Salmon
Fisheries Commission. “The entire
salmon fishing industry is natur
ally elated. All we have to do now
is sell it.”
The Adams River run is shared
equally between Canadian and
U.S. boats under an agreement
drawn up after the two countries
jointly financed expensive fish
ladders in the Fraser River to
enable the fish to reach their
spawning grounds.
Chinese Reds
Release Two U.S.
Correspondents
HONG KONG, UP)—Looking
thin, pale and ill after 18 months
in Communist Chinese captivity,
two American correspondents and
a ship captain from Brooklyn
crossed into British Hong Kong
today.
One of the trio, National Broad
casting Company correspondent
Richard Applegate, 37, of Med
ford, Ore., told a news conference
that after months of solitary con
finement in a Canton jail and long
hours of questioning, he had ad
mitted the Americans waged germ
warfare in Korea.
“I thought they either would
leave me in that prison until I
rotted or that they would kill me,”
he said’
The Reds released Applegate,
International News Service corre
spondent Donald Dixon, 25, of
New York, and merchant mariner
Benjamin Krasner at the Lowu
border bridge. A U.S. consulate
car brought them the 40 miles to
the Peninsula Hotel at Kowloon,
on the mainland across from Hong
Kong.
All three men smiled and then
aughed almost hysterically as
they stepped from the consulate
car to be greeted by almost 70
reporters and cameramen. “Well,
I see the newsmen make the news
today,” Applegate shouted in his
usual bantering manner.
Only AEC Member Who
Opposed Suspension of
Oppenheimer Resigns Post
DENVER, OP!—Dr. Henry D.
Smyth resigned from the Atomic
Energy Commission today and de
clared the United States stockpile
of hydrogen and atomic bombs
assures free world retaliation of
‘.‘overwhelming power” against
any enemy attack.
President Eisenhower “very re
luctantly" accepted the resigna
tion of Smyth, who cast the only
dissenting vote last June when the
commission refused to' let Dr. J.
Robert Oppenheimer’s suspension
from access to secret atomic data.
The summer White House an
nounced Eisenhower is naming
Willard Frank Libby, 45-year-old
University of Chicago atomic sci
entist, to succeed Smyth on the
AEC, effective Sept. 30.
Smyth, 56, the only current
member of the five-man AEC
with a scientific background, has
served since President Truman
appointed him May 31, 1949, to a
term expiring June 30, 1956.
He plans to return to Princeton
University, where he was chair
man of the physics department
and on the faculty from 1924 to
1949.
VARIATION ON OLD THEME
DEWEY, Okla., OR—“Here is
a present for you, teacher,” said
the Lincoln School primary pupil
to Mrs. Anita Kent as he handed
her a perfume bottle.
“Why, thank you,” she replied
to' the tiny boy, “What is it?”
“Rat poison,” he beamed.
She sniffed.
It was.
Full Program
Prepared for
ADB Members
A full program was announced
at the Chamber of Commerce for
the meeting of the Alaska Devel
opment Board, members of which
are arriving today.
An executive meeting is planned
for tomorrow morning, after
which the Board will be guests of
the Rotary Club at noon. At the
luncheon interesting pictures
about the reindeer industry will
be shown.
Thursday afternoon an o"pen
meeting will be held at 2 o’clock.
Friday morning there will be
an executive meeting, followed by
a luncheon sponsored by the
Chamber of Commerce.
Arriving for the meeting are:
William Bates, Ketchikan; Tor
mod Bie, Kodiak; Ken Sheppard,
Anchorage; Robert Groseclose,
James Dalton, Alexander Baird,
manager of the ADB, and A1 An
derson, assistant manager.
FHA Director Discloses
Anchorage Project Which
Involved $74,652 Windfall
CHICAGO, UP)—Federal Housing
Administrator Albert M. Cole list
ed 40 projects last night which he
said cost the government 14 mil
lion dollars in so-called windfalls.
One of the projects, in Anchorage,
involved a windfall of $74,652.
Here are the particulars: the
Anchorage project was called the
Panoramic View Corporation and
the Richardson Vista Corporation.
The amount of paid-in capital
stock was unknown to Cole. The
size of the mortgage loan was $7,
740,400. The reported cost of the
project was $7,665,748, leaving the
so-called windfall of $74,652.
A windfall is the difference in
government loaned money be
tween what a contractor gets to
do a building job, and what the
job actually costs, provided, of
course, that the actual cost is not
as high as the estimate.
Dulles Flies to Europe
For Talks on German
Rearmament Problem
WASHINGTON, CP)—Secretary
of State Dulles will fly to Europe
tonight for talks on the German
rearmament problem created by
French rejection of the European
Defense Community (EDC). He
will visit Bonn and London but
bypass Paris.
The hurry-up trip will alter the
secretary’s plans for a personal
report to the nation tonight on the
recently concluded eight-nation
treaty to defend Southeast Asia
against Communist aggression.
The address will go on as sched
uled but it will go over the air
from a recording.
More Polio in Anchorage
ANCHORAGE, UP*—Five more
polio cases were reported here
yesterday, bringing the total in
Anchorage to 105 since the first
of the year.
Palmer reported three more
cases yesterday.