™5 NOME 1
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS __
VOL. LXI No. 37 NOME, ALASKA, FRIDAY, MARCH 27, 1959- > Per Copy—15* *
McNees’ Road Fund Division Measure
Returned to Special Senate Committee
JUNEAU, Uf\ — A controversial
measure changing the basis for
allocation of Alaska’s highway
funds was sent back to a special
Senate committee yesterday after
a motion to table the bill was re
jected.
The measure, which has been
on the Senate calendar for more
than a week, was designed to pro
vide more money for the North
western section of the state and
to assure ^construction of a high
way to Nome.
It would require that gasoline
tax revenues be divided equally
among the state’s four districts.
Opponents of the bill say the plan
would wreck the federal aid high
way program in Alaska.
Senator John McNees, who has
led the fight to save the bill, of
fered an amendment yesterday to
permit exchange of funds'among
the districts on construction jobs
providing connecting road links,
i Opponents immediately criti
cized the move. Sen. Ralph Moody
of Anchorage said the amendment
“compounds confusion upon con
fusion.”
“It’s unfortunate Senator Mc
nees has made such an issue of
this,” Moody said. “Apparently
he has contacted his constituents
up there and he’s on the hook.”
Sen. George McNabb of Fair
banks, a co-sponsor of the bill,
said that he believed it was “in
cumbent” on Anchorage-area sen
ators to oppose the measure.
“But a road to Nome is impor
tant,” he said, “not only to Fair
banks and Nome but to the whole
state and the whole country.”
However, McNabb moved that
I the bill be sent to the special four
! man committee in another attempt
I to resolve differences.
Two More Weeks
Expected for State
Legislature Session
JUNEAU, GPt — Alaska’s first
State Legislature moved into its
61st day today, with indications
the session will last at least an
other two weeks.
The main item still before the
lawmakers is the executive bud
get, a 26Vfe-million-dollar measure
now under study by the Finance
Committee of both houses.
So far a total of 330 bills — 210
in the House and 120 in the Sen
ate — have been introduced. Act
ing Governor Hugh Wade has
signed 57 measures into law.
The House Finance Committee
introduced a bill yesterday to ap
propriate $76,120 to pay for an
expected 20 additional days of the
legislative session. Most of the
money, $48,000 would pay the $40
day expense allowance for each
lawmaker.
The Legislature already has ap
propriated more than $300,000 to
cover its expenses.
House Votes Back Pay
For Alaska Health Comm.
JUNEAU, GP) — The House
voted, 25-12, Thursday, to grant
$3,550 in back pay to Alaska Com
missioner of Health, Dr. Harry
Gibson.
The amount was the difference
in salary approved by the 1957
Territorial Legislature and the
higher salary approved by the
State Board of Health. The Legis
lature two years ago had set the
commissioner’s salary at $15,000
a year.
The House vote came after Rep.
John Hellenthal of Anchorage
spoke against the bill, contending
the commissioner had the supple
mental pay bill introduced on the
gamble that it might pass.
The bill still must be approved
by the Senate before payment can
be made to Dr. Gibson. ,
LEGISLATION TO TAX
ROADHOUSES WITHDRAWN
JUNEAU, — A measure call
ing for a 2 per cent sales tax on
gasoline, food and lodging services
offered by Alaska roadhouses was
withdrawn yesterday in the Sen
ate.
The bill was introduced two
weeks ago by Senators John Mc
Nees of Nome and Hubert Gilbert
of Fairbanks.
f
Thor-Fired Instruments
Recovered By Air Force
WASHINGTON, UP) — The Air
Force reported today an instru
ment capsule carried on the test
flight of the Thor missile fired
yesterday from Cape Canaveral
has been recovered.
This is the third time a capsule
has been picked up in Thor missile
tests, the Air Force said.
Last night’s firing was aimed
at a spot slightly less than the
full range of an intermediate range
ballistic missile. The range of an
IRBM is about 1,500 miles.
The Air Force said good radio
information was received from the
missile during all of its flight.
The capsule — a spherical plas
tic device — contained a mag
netic tape recorder, a battery
power pack, a radio marker bea
con, dye for coloring water to help
locate the sphere and also what
is known as a “sonar” bomb.
This bomb, when exploded under
water, provides information to
ships on the distance and range
of the explosion.
Anchorage Plans Welcome
For ’59er Caravan
ANCHORAGE, UP) — Alaska’s
largest city prepared a rousing
welcome today for a group of
modern pioneers from Michigan
who braved snowstorms and sub
zero cold on their road trek to
homesteads in the 49th state.
The ’59ers will be met by a
welcoming committee in front of
City Hall.
. any residents prepared their
homes to give their guests meals
and shelter.
The 39 men, women and chil
dren, mostly from the Detroit
area, camped along the road last
night.
They are expected to remain in
A-cNorage a few days before
starting on the last leg of their
lon_, journey to homesteads on
th " Kenai Peninsula, about 100
miles southwest of here.
11 INJURED IN COLLAPSE OF
ROOF WATER TANK IN N. Y.
_ NEW YORK, UP — A 10,000
galion water tank collapsed Thurs
day atop a six-story loft building
and dropped through three floors.
Eleven persons were injured, at
least two of them seriously.
Three iron workers were repair
ing the tank supports at the build
ing on West 26th Street when it
came crashing down.
Christians Follow |
Way of The Cross
In Worldwide Rites
(By The Associated Press)
The faithful of the Christian
world followed the way of the
cross on this Good Friday.
In the Jordan section of Jeru
salem, pilgrims and tourists of
many lands attended services at
the Church of the Holy Sepulcher.
Hundreds toiled up Jerusalem’s
narrow streets on the way to the
cross on Calvary where Jesus
Christ was crucified.
Tenebrae services marking the
death of Christ drew thousands
of pilgrims to St. Peter’s in Rome.
Pope John XXIII, after taking
part in services at Rome’s Santa
Croce Church, finished work on
his Easter message, to be deliv
ered do the world Saturday night.
Good Friday services were held
in thousands of Protestant and
Roman Catholic services in all
Christian countries. -
American evangelist Billy Gra
ham delivered a Good Friday
message to 8,000 persons standing
in the rain on a beach at Broad
beach, Australia.
U. S. - Bulgarian
Govt. Diplomatic
Exchange Renewed
WASHINGTON, UPl — The
United States today resumed full
diplomatic relations with Commu
nist Bulgaria.
This ended a nine-year break re
sulting from Bulgaria’s charges
the last American minister in So
fia was a spy.
The State' Department dropped
the long diplomatic boycott after
the Bulgarian regime announced
it has withdrawn the espionage
charges against former minister
Donald Heath.
A Bulgarian government repre
sentative noted that his country’s
supreme court on November 6,
1956, annuled prison sentences
given persons charged with the
alleged spying. Therefore, Bul
garia said, “charges against Heath
in connection therewith have
been withdrawn as groundless.”
The agreement to resume dip
lomatic relations came about as a
result of more than two years of
sporadic behind-the-scenes talk.
The Bulgarians first suggested the
move in December, 1957.
Bellingham Firm Bid
Lowest For Air Force
Construction At Clear
SEATTLE (£> — Baker & Ford
Construction Company of Belling
ham was the apparent low bidder
today on construction of a com
posite building at Clear Air Force
Station.
The firm bid was $2^52,814 on
Schedule A, construction of the
building, and $1,013,685 on Sched
ule B, construction of utilities and
water well drilling in connection
with the project.
The Army Engineers’ district
office here said the government
estimates were $3,560,874 and $1,
267,847. The successful bidder will
be named on the basis of its bids
on both schedules.
Apparent second low of the
eight bids received was $2,862,836
and $968,634 entered jointly by
Patti-McDonald Construction Co.,
and Morris-Knudsen Co., Anchor
age. Peter Kiewit Sons Co., Se
attle, was the apparent third low
bidder at $3,946,577 and $941,430.
Legislators Must Cut Expenditures To
Stay Within $26'Million State Budget
By WILLIAM J. TOBIN
JUNEAU, UP) — Alaska’s first
State Legislature moved into an
unofficial overtime session today
with serious budget problems
growing more critical. "
Some of the major financial
worries have developed from sit
uations beyond the lawmakers.
The Democratic-controlled Le
gislature is pinning its hopes for
a successful launching of the new
state on a balanced budget and no
new taxes.
It’s a calculated risk, based on
a gamble that revenue in the next
year will be bolstered by at least
eight million dollars from leases
on potential oil lands.
Even so, expenditures will be
trimmed at least $500,000 under
the 26 Ms million dollars proposed
by Democratic acting Governor
Hugh Wade.
The half a million dollar cutback
was made necessary by a federal
order this month closing two of
Alaska’s big fishing grounds, Bris
tol Bay and Prince William Sound.
The greatest loss is in Bristol
Bay, a once-great red salmon fish
ery closed for 1959 because of de
pleted spawning runs.
The closure means a loss to the
three-month-old state of more than
$360,000 in Bristol Bay raw fish
taxes alone. An additional $100,000
will be lost through related in
come taxes, gear levies and license
fees.
It’s anybody’s guess how hard
the fisheries closures will hit the
state treasury in other ways —
through revenue losses in the to
bacco tax, gross business fees
and other levies.
Without adding new taxes to
Alaska’s already 'high-cost econ
omy, the Legislature has only one
choice — to cut expenditures to
match lower expected revenue.
$1 Million Projects Not Listed
Within the remaining frame
work -of a 26 million-dollar bud
get, the lawmakers also face some
heavy adjusting to cover what ap
pears to be a million dollars worth
of prcjects sot listed by the Gov
ernor.
Since Wade’s budget message
was delivered to the Legislature
two weeks ago the possibility has
arisen that Alaska may have to
put its state court system into op
eration this fall.
The acting Governor’s budget
made no provision for court op
eration, anticipating the federally
supported transitional courts
would continue for possibly three
more years.
The jurisdiction of these courts
now is being challenged, and the
Legislature must figure on de
ducting perhaps a million dollars
from other programs for use if
necessary for a state judicial sys
tem. In addition, the Legislature
appears certain to use at least IV&
million dollars of a predicted 3
million-dollar surplus that had
been expected at the end of the
fiscal year..
Surplus Could Be Wiped Out
By June 30, the entire expected
surplus could be wiped out as
the Legislature meets added de
mands on the state finances.
Nearly $400,000 of the surplus,
building up during the last 18
months of Alaska’s territorial sta
tus and the current first six
months of statehood, will go for
the Legislature’s own expenses.
Another $440,000 already has
been appropriated for a school
bus operation deficiency, and an
other $550,000 school support de
ficiency item awaits final legis
lative approval.
The Legislature yesterday passed
its 60th day in session, the limit
of lawmaking meetings in terri
torial times when the legislaaure
convened every two years.
The lawmakers now are shoot
ing for adjournment near mid
April.
Skate Makes Second
Polar Voyage For
Equipment Testing
WASHINGTON, UP) — The nu
clear submarine Skate has re
ported today to have made a sec
ond trip under North Pole ice,
this tune to punch holes in the
ice to check navigational equip
ment.
The Skate began the trip from
her New London, Conn., base
several weeks ago.
Initial reports said the sub
marine had used a device on top
of her superstructure to probe
the ice and, when finding a soft
spot, to push a hole through the
ice cap.
Alaska Airlines Requests
Exclusive Flight To Clear
WASHINGTON, UP) — Alaska
Airlines asked the Civil Aeron
autics Board yesterday to amend
its certificate to authorize it to
serve Clear, between Summit and
Nenana, on its Anchorage-Fair
banks route.
In separate documents Alaska
also asked for:
1. Exemption from regulations
to permit it to start the service
immediately, pending action, on
the certificate amendment request.
2. Denial of the earlier applica
tion of Wien Alaska Airlines for
authority to serve Clear.
ALASKA BANKS PERMITTED
EXPANSION, IN HOUSE BILL
JUNEAU, (5) — Two House
committees followed up a Wed
nesday night public hearing with
a new bill yesterday, designed to
permit Alaska banks to establish
branches in any city of the state.
The bill, co-authored by the
'House Finance and Rules Com
mittees, would repeal a law
which allows no branch opera
tions more than 100 miles from a
home bank.
The measure apparently was
designed to replace an earlier bill
which would have permitted out
of-state bank holding companies
to do business in Alaska. That
bill had been protested by Alaska
bankers at the public hearing.
BRITISH ROCK *N* ROLLER
SPENDS ARMY LIFE IN
MENTAL HOSPITAL
LONDON, <J> —* Rock ’n’ roll
singing idol Terry Dene didn’t live
up to the British Army’s expec
tations. He has been discharged
as “unfit for service.”
Two days after being inducted
last January, the 19-year-old sing
er was in a military hospital with
“a severe emotional disturbance.”
Eleven days after that, he was
placed in a civilan mental home.
He was discharged Thursday after
an examination by a team of
Army doctors.