as NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LVII No. 33NOME, ALASKA, FRIDAY, MARCH 18, 1955Per Copy—15^
Keep Stock Market
Inquiry Out of
Polities: Fulbright
WASHINGTON, «Pi— Sen. Ful
bright (D-Ark) declared today
“professional Republicans” are
trying to plunge the Senate stock
market inquiry into partisan poli
tics because they seem to lack
confidence in the American econ
omy.
Fulbright, chairman of the Sen
ate Banking Committee, hit back
at GOP National Chairman Leon
ard W. Hall, who criticized the
committee’s inquiry last night in
a speech in Miami.
Hall referred to the hearing as
a vehicle for spreading “gloom
and doom” and said it may well
have caused the recent market
price break.
, * Tried To Be Fair
“I have tried,” Fulbright said
in a statement, “to conduct this
study of the stock market in a fair
and friendly fashion and I think I
have a right to object to profes
sional Republicans attempting to
interrupt this important work. I
would object just as vigorously
if Democratic politicians attempt
ed to pump politics into the
study.”
In the inquiry itself, President
Harlow H. Curtice of General Mo
tors took sharp issue today with
suggestions—by Fulbright and by
others—that there is no real com
petition in the automobile indus-1
try. On the contrary, said Curtice,
the industry “is even more com
petitive today than at any time in
its 50-year history.”
Business Expanding
In another development, the
U.S. Chamber of Commerce de
clared business is expanding
healthily and without danger of
a stock market crash—despite
what the chamber called “loose
talk” growing out of the Fulbright
investigation.
The chamber issued last night
a report saying recovery from the
1953-54 recession not only contin
ued but “actually gained momen
tum” in the first three months of
this year.
SITKA BABY FLOWN TO
* CHICAGO WITH UNKNOWN
AILMENT OF ABDOMEN
CHICAGO, WV—Doctors have de
cided to perform an exploratory
operation Monday in an attempt
to diagnose the condition of an
eight-week-old Alaska girl suf
fering from a mass in her abdo
men.
The girl, Nydea Marie Day,
was flown to Chicago from Sitka
for a series of tests at Illinois Re
search Hospital.
Doctors have been performing
X-ray and other tests since her
arrival Monday without learning
the true nature of the condition.
Pulp Mill Report
SAN FRANCISCO t/P)—The pam
phlet report of Puget Sound Pulp
and Timber Co. for 1954, being
distributed to stockholders, fea
tures 16 pages of text and pictures
on the company’s new pulp pro
duction at Ketchikan.
The new operation, involving
a total investment of $57,518,966
in the Ketchikan Pulp Co., was
started last year.
Everything about the new plant
is huge, from logs to machines.
And virtually everything is auto
matic.
ATOM SHOT DELAY
LAS VEGAS, Nev., (At—'Unfa
vorable weather has caused post
ponement of today’s scheduled
atom shot.
The Atomic Energy Commission
said wind patterns were unac
ceptable for the 500-foot tower
shot.
Yalta Papers Will Be
Damaging to Democrats,
Sen. Capehart Believes
WASHINGTON, (A*»—Sen. Cape
hart <R-Ind> said today the Yalta
papers “will be very, very dam
aging to the Democrats.”
He said the newly published
documents are filled with politi
cal implications which “probably
will carry over to the 1956 presi
dential campaign” but some other
legislators, of both political par
ties, were less positive.
On the international level, Rep.
Vorvs <R-Ohio> predicted that the
disclosure will kill any chance of
American participation in a new
Big Three conference with Russia.
Sen. Mansfield <D-Mont> said
some Republicans will undoubt
edly “try to use what happened
at Yalta for political purposes.”
But the Republican Party as a
whole, he said, “will have to de
cide whether to place their coun
try or their party first.”
Both Mansfield and Sen. Jack
son iD-Wash) said that, with the
ebnefit of hindsight, it appears
obvious that former President
Roosevelt Roosevelt “made some
mistakes” at Yalta, but Mansfield
said Roosevelt “was guided to a
considerable extent by his mili
tary advisers.”
Construction to Begin
On Four Alaska Projects
If Congress Votes Funds
WASHINGTON, 'The head
of the Alaska Public Works Pro
gram says construction will begin
this year on four territorial proj
ects if Congress approves request
ed appropriations.
In testimony just released,
James W. Huston, program di
rector, said the projects would be
a school at Douglas, the Anchor
age water system, a University of
Alaska dormitory and a Ketchi
kan high school addition.
Other projects for which funds
are asked would be started in the
1956 building season, he said.
These would include a school at
Homer, a hospital at Seward,
school additions at Anchorage, an
incinerator at Ketchikan, and
sewer and street projects at
Wrangell, Cordova and Skagwray.
Alaska Command Plans
Operation Overhaul for
Last Week in March
ELMENDORF AFB—Operation
“Overhaul,” the second in a series
of mobility tests by the Alaska
Command, will be held some time
during the last week in March,
Lt. General J. H. Atkinson,
commander-in-chief, Alaska, an
nounced todaj».
As was the case in' last August’s
“Operation Big-Move,” the March
exercise will test plans by ele
ments of the Alaska Command,
including the Alaskan Sea Fron
tier at Kodiak, for moving men
and materiel on minimum notice.
Climatic conditions are expect
ed t<5 play an important role in
Operation Over-Haul. Troops and
vehicles taking part may find
their tasks complicated by the
record snows which have hit Al
aska this winter, particularly in
the Anchorage area.
First of Season s Tourists
To Arrive Here Saturday
The first tour of the season is
scheduled to arrive from Anchor
age Saturday, stated Tom Martin
of the Polaris Hotel, who is in
charge of arrangements for the
group when they arrive.
He said that the party of about
30 is made up of teachers and
others from Anchorage who will
remain over Saturday night, re
turning to Anchorage Sunday. He
is planning a full schedule of
activities for the group, which if
successful, will be followed by
many other winter tours.
Among the things planned is
an Eskimo dance at the Polaris
Saturday evening about 9 o’clock.
Martin said that thev public is
welcome to attend although the
seating capacity is limited.
Alaska Railroad Head
| Expects to Ask No
Further Appropriations
WASHINGTON, Wl—'The head
of the Alaska Railroad says he
“can see no reason . . . barring
some catastrophe . . . why the
railroad should have to come back
to Congress” for further appro
priations.
The prediction was made by
Frank E. Kalbaugh, general man
ager of the government-operated
line, in testimony before the
House Interior Appropriations
Subcommittee.
Kalbaugh testified in support
of a request for 54,100,000 with
which to complete rehabilitation
ot the line between Seward and
Portage.
The railroad has frequently
been criticized by members of
Congress because of large federal
expenditures required in its oper
ation.
Kalbaugh said the carrier had
a profit of 571,000 in the year
ended last June 30
European Papers
Criticize U.S. for
Yalta Release
LONDON, (£*)—European news
papers heaped bitter criticism on
the United States and the late
President Roosevelt today in con
nection with the release of the
Yalta Conference papers.
Only the Communist newspa
pers were playing down the pub
lication of the documents, which
has caused a furor in official cir
cles throughout western Europe.
The British press let loose with
some of the strongest words to be
aimed at Washington in postwar
years.
West Berlin newspapers agreed
that West Germany and the free
world now should join in efforts
to correct what they called the
blunders at Yalta.
The independent Berliner Mor
genpost said Roosevelt, through
“unbelievable political dilettant
ism,” granted Pi’emier Stalin and
Bolshevism power “which Mos
cow did not even dare dream of
in early 1945.”
A conservative Copenhagen pa
per named “B.T.” said U,S. Secre
tary of State Dulles, in releasing
the documents, committed a
“breach of confidence which can
only be described as inconsider
ate and irresponsible.”
British newspapers accused
Dulles of making a “diplomatic
blunder of the first magnitude”
and said the memory of Roosevelt
had been blackened.
Legislature Gets Flood of Protests
On 'Luxury' Sales Tax; Deadlock
Yet On Unemployment Security
Tidal Wave Alert
Lifted for Pacific Islands
PEARL HARBOR, UP*—North
Pacific islands from the Aleutians
to Guam and Hawaii were alerted
against a tidal wave late yester
day because of a submarine earth
quake off Siberia’s Kamchatka
Peninsula.
The Hawaiian Sea Frontier lift
ed the alert after check points in
the Aleutians and on Midway re
ported no danger.
On April 1, 1946 a seismic wave
kicked up in the Aleutians killed
nearly 250 persons in Hawaii and
damaged millions of dollars of
waterfront property.
At Pasadena, a California Insti
tute of Technology scientist said
yesterday’s quake was of medium
intensity, 6.8 on the Richter scale.
Rep. Jensen Favors
More Roads on Alaska's
Kenai Peninsula
WASHINGTON, OP)— At least
one member of the House Interior
Appropriations Subcomm ittee
would favor more roads on Alas
ka’s Kenai Peninsula rather than
construction of the proposed Fair
banks-Nenana highway.
“The Nenana road perhaps may
be all right,” declared Rep. Jen
sen <R-Iowa) in testimony just
released, “but in my book it never
should have priority, when you
have there a railroad . . . which is
giving good service. You are let
ting that great farm area (Kenai
Peninsula* go almost unnoticed,
or at least go without a better
road system.”
Jensen made his* remarks to A.
F. Ghiglione, territorial road com
missioner, after the Alaskan testi
fied the Kenai area “is being pret
ty well serviced for development.”
Ghiglione said the'Nenana Road
—for which $500,000 is sought to
begin construction—is not a farm
project but is designed to tie in a
new community with the territor
ial highway system “and eventu
ally to be extended to McKinley
Park to make a loop through the
park with the Denali Highway.”
Jensen replied he was not say
ing anything detrimental about
McKinley Park “but that park
will not help develop the Terri
tory of Alaska to any great de
gree.”
What will help Alaska, he said,
“is to get a better agricultural
base, and you have that opportu
nity in the Kenai Peninsula.”
Asked if Alaska needed roads i
“down around Homer,” the road
commissioner replied:
“Yes, sir. We need roads all
over, sir.”
Hatoyama Re-Elected
Prime Minister of Japan
TOKYO, liP*—Ichiro Hatoyama
was re-elected Prime Minister
today by the new Diet after a
coalition of rival conservatives
and socialists defeated his candi
dates for speaker and vice speak
er of the powerful lower house.
Hatoyama’s re-election never
was in serious doubt, but former
Prime Minister Shigeru Yoshida’s
conservative Liberal Party made
inroads upon Hatoyama’s control
of the Diet by teaming up with
both right- and left-wing social
ists.
By JIM HUTCHESON
JUNEAU, UP)—The greatest flood
of 'protest telegrams in years
flowed in upon House and Senate
yesterday over the so-called “lux
ury” sales tax and brought a
mixed response on the floor of the
House.
Both branches, however, pushed
ahead with other business as the
session’s end neared with major
problems unsolved. The deadlock
over employment security legis
lation remained unbroken.
In the House it was Rep. Joseph
McLean who brought the sales
tax issue to the floor. He renewed
during the afternoon his morning
attempt to get the House to back
track on its approval of the bill
which would impose a five per
cent tax on a wide range of pur
chases and services.
McLean Shouted Down
But the overwhelming Demo
cratic majority quickly shouted
him down. That followed after
Rep. Ken Johnson, chairman of
the House Ways and Means Com
mittee, told the chamber that the
objections to the sales tax would
give the Senate a good chance to
reconsider whether it wants to
enact the general property tax on
property outside cities and school
taxing districts.
The property tax has not been
given much chance in the Senate.
Nor has it been believed to have
sufficient tax-producing potential
to be even close to balancing the
budget if it is passed.
Committee Favors Tax
However, the Senate Taxation
Committee brought it out yester
day afternoon with a majority
“Do pass” recommendation, with
some amendments.
Both branches enacted other
measures during the day.
A bill to create an Alaska real
estate board, with broad regula
tory powers, and another to re
lieve smaller mining operators of
the special net income tax on their
profits got over their final legis
lative hurdles.
The mining tax bill won 21 to 0
approval in the House and will
now go to the governor.
Stalemate Continues
On the. prime legislative sub
ject of employment security leg
islation, the stalemate continued.
For two days there has been no
real progress on the measure gs
the two houses have sparred over
the matter of turning the whole
problem over to a joint commit
tee with powers of free confer
ence, which means that the group
could redraft completely the
sharply divergent bills approved
by both branches.
The House named a free con
ference committee during the af
ternoon, but the Senate delayed
taking the step.
Compromise Group
The three negotiators named
for the House were sized up gen
erally as a compromise-inclined
group. They are Reps. Harry
Palmer and Irene Ryan of An
chorage and Robert McNealy of
Fairbanks. All are Democrats.
They replaced the original con
ference lineup of George McNabb
of Fairbanks, Stanley McCutch
eon of Anchorage and Tom Stew
art of Juneau.
The original joint conference
group had included McCutcheon
for the House and Sen. Marcus
(Continued on Page Four)