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01 J)EST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
V0l7 lXI No. 8 NOME, ALASKA, MONDAY, JANUARY 19, 1959 _Per Copy—
Eisenhower Asks Special Gran:s To
*
R»fe A’aska Make Transition to State
By FRANK W. VAILLE
WASHINGTON, UP) — President
Eisenhower recommended tolav
that Congress provide a fund of
IOV2 million dollars in special
grants to help Alaska make the
transition from a Territory to a
State.
He proposed legislation where
hv the 49th State could choose be
tween receiving all of the grant
money or request that a portion
be used to continue certain fed
eral functions.
Alaska came in for only $10,
356.825 in earmarked funds in the
proposed 1959-60 budget sent to
Congress, but there was promise
of additional appropriations to be
asked later. The current budget
carried requests totaling 24Vfe mil
lion dollars.
In a reference to the transitional
grants, Eisenhower said:
“The federal government should
provide such financial assistance
as in necessary to facilitate trans
fer to the state of such programs
as highway construction and
maintenance, airport operations,
and public health service.”
The grants would be continued
for four additional years but in
declining amounts.
In line with the President’s
statement, the budget deleted the
reauest of previous years to fi
nance operation and maintenance
of public airports at Anchorage
and Fairbanks.
The President said plans were
being made to transfer the An
chorage and Fairbanks airports to
the state in 1960 and to provide
Alaska funds equivalent to those
which would have been appro-^
priated.
ACS to be Sold
The President said he will soon
submit to Congress proposed legis
lation to authorize sale of the
government-owned Alaska Com
munications system and to incor
porate the Alaska Railroad “to
facilitate its operations on a busi
ness-like basis.”
Speaking of the ACS sales pro
posal, Eisenhower said:
“With Alaska now a state, a
communications system should be
developed which will be more re
sponsive to the growing needs of
the Alaskan economy and people,
as well as to the needs of the gov
ernment agencies operating in
that state. In my judgment, such
a system can best be developed by
private enterprise.”
The President sketched his
plans for Alaska in a separate sec
tion of his message, saying he was
“highly gratified” to -be the first
President in 47 years to welcome
a new state.
New Problems Created
He -noted that Alaska’s admis
sion — because of its size, geo
graphic location, extensive fed
eral land ownership and federal
administration of services — cre
ates problems not previously en
countered when new states were
admitted.
Eisenhower said he did not be
lieve it was in the long range in
terest of Alaska or the nation for
the federal government to contin
ue special programs in Alaska
which, in other states, are the re
sponsibility of state and local gov
ernments or of private enter
prise.
Accounting for most of the dif
ference from 1958-59 was the ab
r-sence of such requests as mil
lion dollars for mental health
facilities and 4 millions for the
expiring Alaska Public Works
program.
Governor Egan
Sent Outside To
Seattle Clinic
Governor Egan left Juneau by
air today for continued hospitali
zation at Virginia Mason Clinic in
Seattle, and Secretary Wade takes
over as acting governor.
The decision to move the Gov
ernor was described by doctors as
a means of freeing him from all
executive responsibilities and thus
speed his recovery from gaH blad
der surgery performed January 16.
Failure to respond quickly to sur
gery was blamed on a continuing
pancreatic attack, although his
condition was described as about
the same as it has been since last
week.
The duration of the Governor’s
stay outside was expected to be
lengthy, but no specific time was
mentioned. However, it appears
likely that Secretary Wade will
serve through the entire legisla
tive session if it lasts only
three months or so. No de
cision has yet been made on the
February 7 inaugural plans, but
it is expected they will be can
celled.
Ike’s Budget Provides
$2 Million For BIA
School At Barrow
WASHINGTON, UP) — President
Eisenhower’s budget for the Bur
eau of Indian Affairs includes $2,
322,000 for construction to serve
180 additional pupils at Barrow.
Nationally, the budget for the
Indian Bureau totals $117,048,000
for the year starting July 1. This
compares with $121,529,000 for the
current fiscal year.
In general, the budget calls for
smaller appropriations for Indian
education and welfare services as
well as for construction of school
facilities.
Los Angeles Will Host
Democratic Convention
Los Angeles is the choice of the
Democrats’ site committee as the
location for the party’s 1960 na
tional convention. It’s still a toss
up where the Republicans will
hold theirs.
Los Angeles won the commit
tee’s recommendation Sunday af
ter putting up a $350,000 cash
offer. Top offers also were made
at the committee’s New Orleans
meeting by San Francisco, Miami
Beach, and Philadelphia. Chicago
and New York also were in the
running.
The recommendation by the site
committee is subject to final ac
tion by the Democratic National
Committee wrhen it meets Febru
ary 27-28 in Washington.
Los Angeles and the other five
cities will compete today and
Tuesday for the Republican con
vention.
Proposed site of the Democratic
meeting is the huge Los Angeles
Sports Arena scheduled for com
pletion in May. The five-million
dollar structure will have a floor
as Ion? as the playing area of a
football field and wide — 300 feet
long and 160 feet wide.
TOURIST PLANS ANNOUNCED
frank Whaley said today that
pre-tourist season tours are being
planned for this area. He said that
the first American Express tour
of the 1959 season to Kotzebue
and Nome is scheduled for some
time in May, ant, will consist of
a party of 20 pn> >ns.
Full Participation In Highway Act Will
Entitle Alaska To $36 Million Next Year
By FRANK W. VAILLE
WASHINGTON, OP) — An Ad
ministration omnibus proposal to
meet transition problems created
by Alaska’s admission to statehood
— including full participation un
der the Federal Highway Aid Pro
gram — probably will go to Con
gress around March 1.
This was the target date set
today by Harold Seidman, Budget
Bureau coordinator, who has rep
resented the Administration in
discussions with Alaska officials.
Alaska now receives credit for
only one-third its land area in the
application of the formula used to
determine its share of highway,
aid. Other states receive credit
for their entire area.
Would be Entitled To More
Under the present law, Seidman
said Alaska would receive an es
timated $18,300,000 in the year be
ginning July 1. With credit for
its full land area as planned by
the Administration, Alaska would
be entitled to about $36,000,000 for
the sair period.
The Administration proposal,
however, would strip Alaska of
its present unique benefits of
being able to use federal aid funds
for highway maintenance. It also
would increase from 10 per cent
to approximately 13 per cent the
amount of money Alaska must
contribute in matching funds to
receive its federal allotment.
From a peak of lOVfc millions
proposed for the year beginning
July 1, the grants would drop to
6 millions in each of the next two
years, and to 2Vz millions in the
succeeding two years.
Seidman said the extra 4V£ mil
lion proposed for the first year
was designed to offset the cost
of capital improvements needed
to prepare the Anchorage and
Fairbanks airports for jet plane
operations.
Money Not Earmarked
The Administration spokesman
said the transition grants would
not be earmarked. Should the
young state find itself unable to
assume certain activities now con
ducted by the federal government,
money would be allocated by the
President to continue that pro
gram.
Money not so allocated would
be turned over to the new state
for whatever use it desired.
WEATHER FORECAST
Fair with little change in tem
perature. Lowest expected tonight
-5, the high tomorrow 10.
Sunrise at 9:23 a.m., sunset at
3:06 p.m.
The low temperature at Nome
in the last 24 hours was -7. But
Granite Mountain recorded 30 de
grees above during the same
period.
Demos Assail Eisenliower’s 77
Billion Dollar ‘Confident’ Budget
By FRANK CORMIER
WASHINGTON, UPI — President
Eisenhower today sent Congress a ,
77-billion-dollar budget forecast
ing a spending cut of nearly four j
billion dollars and a precarious
surplus of 70 millions. He called
it “a confident budget” that as- j
sumbs a surge of prosperity.
Eisenhower said the budget aims 1
to restrain inflationary forces that!
“cheapen our money and erode j
our savings.” He also said it paves j
the way for a tax cut “in the |
reasonable foreseeable future.” j
No Tax Cuts
No tax cuts were proposed for
the present. In fact, to help
achieve the first balanced bud-1
get in three years, the President!
is asking Congress to boost postal i
rates and gasoline taxes. He also j
wants some tax loopholes plugged.j
Any added postal revenues and
proceeds from loophole plugging
would increase budget receipts
and gas tax money would go into
a separate trust fund which, Eis
enhower said, would otherwise
have to be replenished out of the
budget.
Eisenhower said his fiscal blue
print, for all its emphasis on
economy, promises to “increase
our military effectiveness.” The
budget calls for hiking Defense
Department military spending by
145 million dollars but projects a
cut of 562 millions in arms aid to
other nations.
Democrats Critical
Democrats in Congress generally
were critical of the budget. Re
publicans welcomed the plans for
a budget balance and said the al
ternative is more inflation.
Senator John Sparkman (D-Ala>
called the figures unrealistic, say
ing he found it hard to believe
that Congress will increase gaso
r line taxes or postal rates.
For the Republicans, House
GOP leader Charles Halleck (R
Ind) praised Eisenhower’s budget,
which he said “will provide for a
strong defense, for progress in
meeting human needs, and for a
prosperous and expanding econ
omy.”
Secretary of the Treasury Rob
ert B. Anderson indicated that if
Congress boosts spending in the
new budget, a tax increase — ra
ther than a cut — would become
a real possibility. 1
Deeper In The Red
The President disclosed that in
the current fiscal year, which -
ends June 30, the government’s
finances will be even deeper in
the red than had been predicted.
He said recession-hit revenues will
fall $12,871,000,000 short of match
ing indicated spending of $80,871,
000,000.
He said this whopping deficit —
the biggest ever in peacetime —
will make necessary another re
quest to Congress for an increase
in the legal ceiling on the na
tional debt.
By the President’s calculations,
present revenue laws alone
wouldn’t produce a balanced bud
get. He is asking Congress to pass
legislation that would increase
budget receipts by 60 million dol
lars in fiscal 1960.
Eisenhower proposed * raising
350 millions by again boosting
postal rate, which went up only
last August. He will submit de
tails on this and other revenue
proposals later.
The federal gasoline tax would
be hiked to 4Vfe cents a gallon,
from the present 3 cents. The ad
ded revenue — more than 600
million dollars the first year —
would go into a special trust fund
to finance roadbuilding. Eisen
hower said the increase, designed
to keep the trust fund in the
black, should go into effect July
1, and expire on June 30, 1964.
Ketchikan Freight Boat
Lost In Puget Sound
SEATTLE, UP) — The small Ket
chikan freight boat, Valentine,
capsized in heavy weather off
Wh id-bey Island in Puget Sound
Saturday but the three men aboard
escaped safely to shore in a skiff
as a Coast Guard helicopter hov
ered nearby.
They were John Ristovich, mas
ter, Martin Parsons and Robert
Edenshaw, all of Ketchikan.
They reported to the Coast
Guard the Valentine’s load of
shingles shifted, causing it to up
set. Later it broke up in the surf
near where they landed on Cama
no beach. It was headed for Ket
chikan.
Storms and Cold Blast
U. S., Far Into Deep South
(By The Associated Press>
A new cold wave pushing down
from central Alaska hit the Mid
west with more subzero blasts
Monday. Weekend storms left
parts of the East buried under
deep snow drifts.
The cold air rolled deep into
the South. Northern Florida had
freezing weather and tempera
tures were in the 40’s in the ex
treme southern section.
The new invasion of Arctic air
drove temperatures to 10 to 15
below in North Dakota and north
Gen. Marshall’s Condition
Remains ‘Satisfactory’
FT. BRAGG, N. C., UP) — Gen
eral George C. Marshall, who has
received thousands of messages
since he suffered a slight stroke
last week, remained in seclusion
at Womack Army Hospital here.
His condition is reported as sat
isfactory.
Teamsters Plan Drive
To Organize Sears
DALLAS, Tex., UP) — A nation
wide drive to organize employes
of Sears, Roebuck & Co., will be
gin Januay 27, Teamsters’ Union
vice president M. W. Dusty Miller
said here Friday.
Miller was named to head the
national drive by president James
R. Hoffa.
ern Minnesota.
Cold air picking up moisture in
its flow across the Great Lakes
left an ocean of snow blanketing
parts of Pennsylvania and New
York.
At least 12 persons died as a
result of storm-connected acci
dents and heart attacks in New
York State.
Bennett Ridge, a small hamlet
inland from Lake Ontario, had 51
inches of snow on Friday and Sat
urday. Sixteen inches fell over
the weekend in northern New
York.