22 NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVIII No. 91 NOME. ALASKA, WEDNESDAY, AUGUST 1, 1956_ Per Copy—15#
KEFAUVER WITHDRAWS FROM
DEMOCRAT PRESIDENTIAL RACE
By the Associated Press <3
Adlai Stevenson’s political stock
as a Democratic presidential nom
inee was at a new high today in
the wake of a sudden withdrawal
by Sen. Estes Kefauver of Ten
nessee.
Kefauver announced yesterday
he would retire from the hard
fought race and join the Steven
son camp, for the sake of party
unity and “victory in November.”
Some Stevenson supporters saw
the merger as an all but certain
indication of a quick Stevenson
victory at the Democratic Nation
al Convention in Chicago begin
ning Aug. 13. Democrats backing
other hopefuls weren't so sure.
Stevenson welcomed Kefauver’s
announcement with a statement
saying he shared Kefauver’s hope
Democrats “united by a common
purpose can soon close ranks and
get on with this fateful cam
paign.”
Both men said there had been
no negotiations between them be
fore the announcement. Kefauver
repeated he is not a candidate for
vice president but didn’t entirely
close out the possibility.
Gov. Averell Harriman of New
York, who has been running a
close third in the Democratic
presidential sweepstakes behind
Kefauver, served notice he would I
“never” withdraw.
Furthermore, Harriman, said I
he expects to get more than half
of Kefauver's convention delegate
votes. He said many already had
shifted to him.
An Associated Press tabulation
made after Democrats completed
their 1,372 convention roster gave
Stevenson 371 first-ballot vote
pledges and expressed preferenc
es, Kefauver 164Via and Harriman
136. It takes 686Vi to nominate.
Former President Harry Tru
man said Kefauver’s withdrawal
did not change his previously ex
pressed neutral stand among the
Democratic candidates.
U.S. Is Faced With Very
Grave Issue’ in Suez
Crisis, Says Eisenhower
WASHINGTON, (*—President
Eisenhower said today the United
State's aim in the Suez Canal
crisis is to make certain of the
continued use of that waterway
in spite of its seizure by Egypt.
In his news conference, Eisen
hower declined to disclose the
contents of any messages he may
have received from Britain's
Prime Minister Eden and France’s
Premier Mollet.
But Eisenhower told reporters
the government is faced with a
very grave issue which is, in fact,
important to every country in the
world that has a sea coast, and
perhaps to all other countries
MUTUAL DISTRACTION
SANTA BARBARA, Calif., uP—
In a hospital where they were
taken for treatment of minor in
juries. Mrs. Janet Clough and
Earl R. Butler explained why
their cars collided:
Both were watching a police
man give a truck a traffic cita
tion Monday.
U.S. Tin Files Suit
Against the Govt.
For $13,500,000
This morning in the Second
Division U.S. District Court, W.L.
Gibbone, representing the U. S.
Tin Corp., filed a suit against
the government for $13,500,000.
The suit was filed in a cross
complaint and in answer to a
forecloseure of mortageg held by
the U. S. government for notes
amounting to $2,841,238.30 against
the U.S. Tin Corp.
The complaint charges that the
United States in contravention to
both oral and written statements,
failed to negotiate the price of tin
and compelled the U.S. Tin Corp.,
to operate at a loss.
The complaint also states that
the corporation accepted aid from
the government because the U.S.
Tin Corp. mine at Lost River is
the only known tin mine in North
America and needed by the U.S.
government, and upon accepting
aid from the government discov
ered they had lost complete con
trol of the operation with the ^
government operating the mine!
at a cost more than the defendant |
could afford.
Concern Felt Here Over
Discontinuance of Fire
Dept. At Nome Field
Allen Hulen, regional director
of CAA in Alaska is expected in
Nome in the near future in con
nection with the turning over of
Air Force fire fighting equipment
at Nome Field to the CAA, it has
been reported'.
Much concern is felt here since
it has not been ascertained that
the CAA is planning to maintain
this equipment.
According to the CAA there
were 637 plane landings during
July on Nome Field, in addition
to military planes. They expected
as much if not more traffic in
August. In view of this traffic
through Nome Field operation of
the Air Force crash truck and
fire fighting equipment is of great
importance to both the airlines
and the traveling public.
COMMUNIST CHINESE TROOPS INVADE BURMA
RANGOON, Burma U*—Several
hundred Chinese troops were re
ported to have invaded Burma's
mountainous northern frontier
Monday. The Burmese govern
ment said last night it was “seri
ously concerned” over develop
ments in the area.
A statement from the Burmese
foreign office said some of the
Chinese troops had established
outposts in Wa State in northeast
Burma close to the border.
The .reports received here said
the Communist Chinese had
crossed the frontier along a 500
mile arc and advanced up to 60
miles into Burmese territory.
“The Burmese government is in
close touch with developments in
the border region," the govern
ment statement declared.
The statement said the Bur
mese government had brought the
matter to the attention of Peiping
and “negotiations are in progress
with a view to withdrawal of
these Chinese troops to the Chi
nese side of the border.”
The statement was issued after
a meeting of Prime Minister Ba
Swe with cabinet leaders and
chiefs of the armed forces.
Reports from the border area
said the Reds crossed in small
bands and occupied positions in
a wide arc between Putao (Ft.
Hertz), at the northern tip of the
country, and Kunlong Ferry, on
the Salween River south of the
wartime Burma Road to China.
Communist patrols have crossed
the 1,000-mile, poorly defined
border before but always have
withdrawn after Burmese pro
tests. Peiping customarily blames
errors of local border command
ers.
The latest crossings, however,
appeared to be in considerably
greater strength than previous in
cursions. They also followed re
ports from Buiynese officials in
the area that Chinese army units
along the border have been in
formed with regular troops in
recent months.
City Council
Agrees to Codify
Ordinances
The Nome City Council held a
special meeting Monday evening
and passed the long-pending
agreement to codify the munici
pal ordinances. The work will be
done by the Municipal Code Corp.
of Florida at an approximate cost
of $3,950.
It was reported that the City
is still negotiating with the N.C.
Co. for east end lots for the Alas
ka National Guard, which will
have to move soon off the Federal
Building site.
The matter of collecting sales
tax from the M-K Co. has been
deferred until the return of City
Attorney von der Heydt from
thg Democratic National Conven
tion in Chicago.
At noon today another special
meeting was to be held to pass
on a resolution relating to city
and territorial cooperation on
juvenile detention cases.
City Clerk farrie McLain re
ported total collections of $585
for the 4th of July celebration
with expenses of $510, leaving a
small balance for next year’s
4th of July celebration.
The City Clerk also reported
$2200 outstanding in delinquent
taxes.
The hot lunch committee repre
sented by Mrs. Mecklenburg and
Mrs. Emmons asked the city for
the balance of the fund allotted
last year which was noj spent, ]
amounting to about $900. The
matter was referred to the Nome
School Board.
It was reported that no bids
had been received for tearing
down the old ANS building, or
for moving the Martin Backstrom
cabin from the school playground
site.
Court Approves Damage
Payments To Gold Mines
WASHINGTON —The Court of
Claims last Saturday reaffirmed
a previous decision that six gold
mining companies are entitled to
recover damages for ^ closing of
their mines by government order
during World War II.
The court denied a government
motion for a rehearing.
BRITAIN READY TO USE
FORCE IF NECESSARY
TO KEEP SUEZ OPEN
-—--—-(
CONTRACTOR HERE
TO START WORK ON
NEW FEDERAL BLDG.
Mr. and Mrs. Henderson, repre
senting the Martinson Construc
tion Co., who will be building the
new Nome Federal Building, ar
rived here yesterday.
It is reported that the Territor
ial National Guard has 60 days in
which to move its buildings from
the site, which will be used for
the new Federal building.
According to the postmistress,
the contractors plan to dig the
basement this winter, bring in
their supplies on the last boat and
get an early start next spring.
Four Teen-Age Girls
Housed In City Juvenile
Detention Quarters
The city’s juvenile detention
quarters have been put to use
for the first time with four teen
age girls being held. All four
girls have past records for juve
nile delinquency.
Their cases have been turned
over to the Territorial Welfare
Dept. They will either serve out
their time in the local detention
quarters or they will be sent to
juvenile correctional institutions
in the States.
Denver Flooded After
Three Days of Heavy Rain
By the Associated Press
Three days of lashing rain has
spawned floods in Denver and in
parts of the Rocky Mountain area
today, leaving hundreds homeless
and millions of' dollars property
damage.
Hardest hit was the southern
section of Denver, where water
ran two to three feet deep, turn
ing streets into streams. Traffic
was paralyzed in these areas and
homes were inundated.
City officials declared an emer
gency in the stricken section and
rushed more than 600 regular and
auxiliary police to aid in boat
evacuations.
i LONDON, Ofl—An authorative
British source said today Britain
is ready to use force if necessary,
including the reoccupation of the
Suez Canal Zone, to keep the
canal open to world shipping.
The informant is an official of
Prime Minister Eden’s govern
ment. But he declined to be iden
tified by his name or position.
He said Britain has not asked—
and does not intend asking—the
United States to join in any mili
tary measures which this country
may take as a result of Egypt’s
nationalization of the canal.
Britain has, however, called on
the United States to give political
support in the event military ac
tion is taken, he said. France and
some of the British Common
wealth countries were described
as backing this country’s attitude.
The information was given out
as U.S. Secretary of State Dulles
talked with Eden, British Foreign
Secretary Selwyn Lloyd, and
French Foreign Minister Chris
tain Pineau at a hurriedly ar
ranged “work luncheon.’’
Dulles, who only Sunday said
he had no plans to come here, ar
rived from Washington by plane
this morning. He is thought to
have been sent by President Eis
enhower to urge moderation upon
the French and British.
The United States broadly sup
ports Anglo-French objections to
the canal nationalization and also
seeks ways of guaranteeing free
passage thru the canal—which
Egyptian President Nasser has
pledged to do.
New Law Gives
More Benefits to
Federal Employes
WASHINGTON, W5—President
Eisenhower yesterday signed into
law today a bill providing hefty
pay raises for top government ex
ecutives and liberalizing retire
ment benefits for all federal em
ployes.
The executive bill boosts sal
aries of the President’s Cabinet
officials from $22,500 to $25,000
a year, with commensurate in
creases for lesser federal execu
tives all down the line.
The pay raises and improved
retirement and survivors benefits
were passed by Congress in the
closing days of the session as an
inducement for qualified employ
es to seek and Temain in federal
jobs.
Territorial governors will be
paid $19,000. They now earn from
$13,125 to $15,000.
Congress just last year voted
pay raises totaling more than a
billion dollars a year to all classes
of government employes, includ
ing the military.
Among other liberalizing fea
tures, the retirement provisions
of the bill permit federal employ
es to retire at a higher«pension
than under the old formula.