zs NOME NUGGET
OLDEST NEWSPAPER IN ALASKA —MEMBER ASSOCIATED PRESS
62nd Year No. 89 NOME, ALASKA, WEDNESDAY, JULY 26, 1961 Per Copy 15^
Secty. Udall Plans !
To Visit Alaska
In Mid-September
JUNEAU (/P) — Secretary of the
Interior Stewart Udall plans to
visit Alaska after Congress ad
journs, probably in mid-Septem
ber, Gov. Egan said today.
Egan said he was advised of
Udall’s plans during conferences
with the Interior Secretary and
his assistants about various
phases of the department’s pro
gram as it affects Alaska.
Egan returned to Juneau from
the east yesterday.
Egan said he had discussed
several subjects during his talks
with Udall last Friday in Wash
ington, D. C.
One of the things the two men
talked about was the migratory
waterfowl problem existing in
Northern Alaska, wherein the
Fish and Wildlife Service is at
tempting to prevent natives from
taking ducks and geese for food
at any time of the year, as they
have been doing for hundreds of
years.
“Secretary Udall expressed per
sonal sympathy,” Egan said, “but
he maintained that the U. S.
Canadian-Mexican treaty on which
the FWS action was based will
not permit natives to take water
fowl out of season.
“I pointed out to him that the
majority of birds taken by the
natives are not migratory and
quoted from an FWS report of
1955-56 saying that 78 per cent
of the birds taken by natives in
the area north of the Kuskokwim
are not migratory birds.”
Egan said he also discussed the
Arctic Wildlife Range, created in
Alaska’s northeast corner by
Udall’s predecessor. Republican
Fred Seaton, only a few days be
fore Seaton relinquished his of
fice to Udall, a Democrat appoint
ed to the post by President Ken
nedy.
“I told Secretary Udall that we
felt the Alaska Dept, of Fish and
Game is just as able to adminis
ter the area as the federal gov
ernment.
“Mr. Udall made a suggestion
which I am not a liberty to dis
cuss now. There does seem to be
a possibility that he will schedule
public hearings on the matter in
Nome, Fairbanks, Anchorage and
Juneau when he visits Alaska.
Patterson to Defend
His Title October 23
BOSTON UP> — The Massachu
setts Boxing Commission today
granted a license to Champion
ship Sports Inc. to promote a
heavyweight title fight between
Floyd Patterson and Tom Mc
Neeley. A1 Bolan, one of the
partners in the corporation, im
mediately announced October 23
as the tentative date for the bout.
The fight will be staged in
Boston Garden with a $100 top.
The commission, in a meeting
that lasted only about three min
utes, granted a matchmaker li
cense to Boland and a promoter’s
license to Championship Sports,
composed of Bolan and his broth
er Tom.
Patterson, under fire from the
National Boxing Assn., for not
defending against a ranked chal
lenger, was not present for the
brief session.
McNeeley, unbeaten youngster
from Arlinton, Mass., is not rank
ed by the NBA.
DEFENSE DEPT.
BOOSTS AUGUST
DRAFT CALL TO 13,000
WASHINGTON UP) — The De
fense Department today boosted
its August draft call to 13,000, an
increase of 5,000 over the number
previously ordered for Army serv
ice next month.
The action came as the Kennedy
Administration presented to Con
gress its plans to increase the
armed forces by about 217,000 be
yond present levels to meet a Rus
sian threat to Berlin.
Secretary of Defense Robert S.
McNamara had announced earlier
that the draft call for September
would be 20,000 men. The call for
July was 8,000 men — the same
as the August number before the
inci'ease.
In announcing the increased
draft call, the Pentagon said “this
action is consistent with the
President’s program to improve
the posture of the armed forces.”
President Kennedy, in announc
ing to the nation last night his
plan for partial mobilization, said
draft calls would be doubled and
tripled to bring about the mili
tary buildup.
Nikita Confers With
President’s Special Envoy
On Disarmament Deadlock
MOSCOW (/ft — Premier Krush
chev talked long and earnestly
today with President Kennedy’s
special envoy, John J. McCloy,
on the disarmament deadlock be
tween the two powers.
The chief Soviet disarmament
representative, Valerian Zorin,
was also present on the sun
flooderi terrace of Khrushchev’s
Black Sea vacation hideaway at
Sochi for this last-ditch try.
There was no word in Moscow
as to whether they had been suc
cessful — but most diplomats
doubted it. Tass, however, said
the talks were held in a friend
ly atmosphere.
McCloy flew to the Black Sea
resort yesterday at Khrushchev’s
invitation.
McCloy and Zorin have gotten
nowhere in their attempts to
make arrangements for a resump
tion of the disarmament talks. The
United States objects to the So
viet plan to expand the 10-nation
committee to 15 to include 5 so
called neutrals.
FBI Files Kidnaping
Charges Against Cuban
Who Hijacked EAL Plane
MIAMI, Fla. UP) — The FBI
filed kidnaping and other charges
here today against Wilfredo Ro
man Oquendo, 36, Cuban-born
waiter, in connection with Mon
day’s hijacking of an Eastern Air
Lines plane.
Richard S. Beier of the FBI
office reported investigation show
ed that Oquendo, a naturalized
American citizen, was aboard the
kidnaped plane under the name
of J. Martin.
FBI agents prepared charges
of kidnaping, crime on the high
seas (assault to commit a felony),
assault with a deadly weapon, and
interstate transportation of stolen
aircraft against Oquendo.
The FBI said its investigation
indicated Oquendo is a past mem
ber of the Cuban Secret Police
under the regime of ex-president
Carlos Prio Socarras, and is a
member of Fidel Castro’s “26th of
July” movement, whose anni
versary is being celebrated today
in Cuba.
French Claim
I)a£ Favors Tunisia
PARIS l/P> — France tonight ac
cused U. N. Secretary - General
Dag Hammarskjold of favoring
Tunisia in the Bizerte crisis.
The official criticism virtually
killed any chance of the U. N. of
ficial visiting Paris in an attempt
to iron out the fighting over the
French-held base in Tunisia.
BIZERTE, Tunisia — Com
bat-ready French paratroopers to
day stopped and searched the car
of U. N. Secretary-General Dag
Hammarskjold on the outskirts
of Bizerte.
A paratroop roadblock halted
the official black limousine fly
ing the U. N. flag as Hammar
skjold was going on a visit to
the battle scarred city.
The U. N. chief was invited by
President Habib Bourguiba to
help find a solution to the Bizerte
crisis.
Before the official motorcade |
reached the Bizerte ferry landing,
French paratroopers is green-and
brown camouflage uniforms sig
naled it to a halt.
They opened the trunk of the
car and waved it on when told
that Hammarskjold was inside.
“He will make more trouble for
us,” said one of the paratroopers.
“I’ve stopped being surprised
| by anything,” Hammarskjold later
| told newsmen.
So far the U. N. Secretary
General’s peace-making mission
has had no visible effect on the
tense situation. He conferred this
morning with Tunisian officials,
talked with the British ambassa
dor and saw the French consul.
It was the first official notice
of his visit taken by the French
who have refused U. N. or other
foreign intervention to help set
tle their dispute with Tunisia.
True Interest Rate on
Loans Should Be on Face
Of Contract in 3” Letters
WASHINGTON UP) — A con
gressional witness today suggest
ed the true annual interest rate
for loans and credit buying be
written on the face of the con
tract three inches high and pre
ferably in color.
Daniel Fusfeld of the Univer
sity of Michigan’s Dept, of Econ
omics said this would call atten
tion of the borrower or buyer to
the cost of his installment pur
chase or loan.
Fusfeld testified before a Sen
ate Banking Subcommittee in
support of what Sen. Paul H.
Douglas, (D-Illd, calls his “truth
in lending” bill. It would require
full disclosure of finance charges.
Lake George Breakup
Floods Glenn Highway
ANCHORAGE UP) — Through
traffic on the Glenn Highway be
tween Anchorage and Palmer was
shut down during the night due
to flooding conditions of the
Knik River.
The highway was closed be
tween mile 30 and mile 39 after
high water inundated the road
way at four places.
The high water was caused by
the big run-off from the annual
Lake George breakup. The high
way closure was ordered by the
State Highway Dept, in order to
prevent any structual damage to
the heavily traveled roadway.
The crest of the run-off is ex
pected to be reached later today.
World Reaction
On Kennedy's Speech
Divide on Cold War Lines
BERLIN GW — World reaction
to President Kennedy’s speech on
the Berlin crisis divided on cold
war lines today.
West Germans were delighted
at his firm stand. Other West Eu
ropeans and their friends abroad
warmly endorsed the President’s
pronouncement, with its prospects
for improvement, in the military
posture of the United States and
the North Atlantic Treaty Or
ganization.
The Soviet news agency Tass
said in a Washington summary
that Kennedy had seized on “the
so-called threat to West Berlin,
allegedly coming from the So
viet Union,” as an excuse to jus
tify the arms race.
The first significant reaction
from the neutralist sphere came
in New Delhi, where a senior
Indian Foreign Ministry official
called Kennedy’s appeal for in
creased defense spending ex
tremely unfortunate.
Refusing to be identified by
name the representative of Prime
Minister Nehru’s government
added that Kennedy’s emphasis on
holding the door open for a peace
ful settlement was very welcome
“Let us pray statesmanship wil!
prevail,” he said.
Two persons intimately con
cerned were West German Chan
cellor Konrad Adenauer and Wes
Berlin’s Mayor Willy Brandt
Both were enthusiastic.
Adenaeur declared in Bonn he
was “happy that the United States
has resolutely taken over the
leadership of the West."
Brandt issued a statement say
I ing it was a moving speech.
Nixon Urges U.S.
To Support Kennedy
On the Berlin Crisis
LOS ANGELES OP — Former
Vice President Richard Nixon to
day asked all Americans to sup
port President Kennedy’s program
for dealing with the Berlin
crisis.
Then he urged this four-point
follow-up:
1. “Stop Castro’s outlaw opera
tions in the Americas.”
2. “Break the Soviet filibuster
on atomic testing.”
3. “Put some backbone into
America’s fight against admit
ting Red China to the United Na
tions.”
4. “Shelve all new spending
programs not directly necessary
for national defense.”
Nixon, defeated by Kennedy in
the last Presidential election, is
now a Los Angeles lawyer. Many
still regard him as the nation’s
top Republican. His formal state
ment today said:
“Only this kind of firm policy
in dealing with the Communists
has a chance to keep the peace
without surrender.”
He concluded:
“Action on these fronts is es
sential to protect our security at
home and will help regain the
initiative for American leadership
abroad.”
THE WEATHER
Cloudy with intermitten rain.
Little change in temperature. In
the last 24 hours: High of 56, low
of 49. Sunrise at 2:44 a. m., sun
set at 9:29. Temperatures a year
ago today: High of 60, low of 50.
Extremes on this date since 1907:
High of 78 in 1926, low of 34 in
1917.
NY Syndicate
Submits Low Bid
For Ferry System
JUNEAU UPi — A New York
syndicate headed by the Bankers
Trust Co. submitted the low bid
today for $12.5 million in state
general obligation bonds for the
Alaska Ferry System.
The syndicate offered an ef
fective interest rate of 3.8175 per
cent during the 30-year life of
the bond issue. Total net interest
cost would be $9,724,122.50.
| The Bankers Trust Syndicate
also submitted the low bid for
$1.2 million in GO bonds for im
provements at the University of
Alaska, including construction of
a new gymnasium.
The effective interest rate of
fered was 3.5395 per cent. The
total net interest cost during the
20-year life of the issue will be
$504,553.
Barcus Kindred & Co., Chica
go, submitted the low bid for
$275,000 in GO bonds to finance
improvements at bush airfields in
Alaska.
Total net interest costs would
be $47,791.01 during the 10-year
life of the issue on an effective
interest rate of 2.9963 per cent,
i i The first test of the state’s
! credit was pronounced a major
- success by financial consultants
- | and state officials alike.
t The general obligation bonds
. were the first to be issued by Alas
ka as a state, although some GO
1 bonds were issued by Alaska dur
ing its territorial days.
Gov. Egan, who watched and
listened intently while the bids
were being opened, said the re
sults were highly gratifying.
The state had estimated that
, the interest might run as high as
I 4 per cent for the ferry bonds.
State Commerce Commissioner
j A. H. Romick said the interest
| rates the state received “were a
l good indication of the interest
I being shown in the State of Alas
I ka.”
| Romick said most of the major
I investment houses in the United
States were represented in the
various bids submitted for the
three bond issues.
JFK Wants S3.454
Billion More for
Military Spending
WASHINGTON UP) — President
Kennedy today called on Congress
for $3,454 billion of new military
and home defense spending that
will push this year’s red-ink bud
get to a peace-time record outlay
of $87.73 billion.
If Congress approves — and
legislators seemed to be in the
mood to vote billions for defense
— the deficit would rise to a
figure estimated officially at
“more than $5 billion.”
Kennedy’s warning last night
— that he will ask a tax increase
next year if necessary to keep
“strictly in balance” the fiscal
1963 budget, starting next July
1 — was not repeated in today’s
brief, unadorned recital of fiscal
bad news.
There was a prospect the deficit
will be ballooned into an even
higher figure than Kennedy set.
It was raised by the staff of
the joint Senate-House Commit
tee on internal revenue taxation
in a report issued almost simul
taneously with Kennedy’s new
money request.