zs NOME NUGGET
' OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LIX No. 103 NOME, ALASKA, WEDNESDAY, AUGUST 28, 1957 Per Copy—15^
Governor Appoints Tax Advisers
. Nolan, Johnson, Butrovich & Gray
SITKA Uft—Appointment of four
territorial legislators to a special
tax study committee was an
nounced here by Gov. Michael
Stepovich.
Addressing the Sitka Republi
can Club dinner Monday night,
Stepovich reminded he promised
a tax study would be one of the
first projects of his administra
tion.
He said territorial taxes have
“passed the point of being reason
able,” and announced informa
tion cn what he called the Gov
ernor’s Advisory Committee on
Taxes.
It is to be composed of two Re
publicans and two Democrats rep
resenting each of Alaska’s four
judicial divisions. Named were
Sen. James Nolan, Wrangell, and
Rep. Ken Johnson, Anchorage,
Democrats, and Republicans John
Butrovich, senator from Fair
banks, and Rep. Clinton Gray, of
Nome.
Stepovich, a legislator before
he became governor, has been a
close associate of Nolan, Butro
vich and Johnson in past law
making sessions. Each is consid
ered an expert on territorial fi
nances.
Gray, the only relative govern
ment newcomer selected, was a
freshman representative in the
1957 session. One of three Repub
licans in the lower chamber, he
was a member of the House Com
merce Committee.
Stepovich said the four would
spend “as much time as they
need” to come up with a tax pro
gram which he will present to the
next session of the Legislature.
They will hold their first meet
ing at Juneau in mid-September,
Stepovich said. The advisory
roles will be non-paying positions.
Per diem and travel expenses
while in formal session will come
out of territorial appropriations
to the Governor’s Office.
Elvis Presley Leaves
For Pacific Northwest,
Kisses His Girl Goodbye
MEMPHIS, Tenn., (R)—E 1 v i s
Presley gave his “number one”
girlfriend a goodbye kiss last
night, then set out for a rock ’n’
roll tour of the Pacific Northwest.
“Anita” is number one with
me—strictly tops,” Elvis confided
to a small group of friends and
fans before boarding a train for
Spokane.
“Anita” is blond, 19-year-ol$l
Anita Wood, Memphis television
performer who broke into tears
after the singer left. She rode
away from the station with Pres
ley’s parents, Mr. and Mrs. Ver
non Presley.
\ Elvis’ tour will last three
weeks.
Alaska Airlines Considers
Purchase of Turbo-Props
For States-Alaska Service
SEATTLE, UP>—Alaska Airlines
is considering purchase of turbo
p r o p transports for use on its
States-Alaska route, Charles F.
Willis Jr., airline president, said
today.
The airliners under considera
tion are Lockheed Electra and
British built Bristol Britannias.
Willis said the line is going
ahead with negotiations to buy
certain facilities at Paine Field
near Everett. The line maintains
its overhaul and repair base there.
He said plans are being made
also for construction of a large
company hangar and develop
ment of equipment and mainte
nance facilities at Fairbanks.
Eisenhower Pleased With House
Boost in Foreign Aid Funds
WASHINGTON <£>—Sen. Know
land (iR-Calif) described President
Eisenhower today as “well satis
fied’’ with yesterday’s Senate
committee action adding $500,
900.000 to foreign aid funds voted
by the House.
The Senate Republican leader
reported Eisenhower’s reaction to
newsmen after the regular week
ly White House session of key
GOP members of Congress.
The parley took place as for
eign aid opponents headed into an
uphill fight on the Senate floor to
try to wipe out the increase in the
appropriation for military and
economic aid abroad.
The Senate committee voted
14-7 for a bill providing $3,692,
710.000 in new and reappropriated
money.
Eisenhower still would prefer
the full amount authorized, said
Knowland, but realizes that he
could not expect any more than
the Senate committee voted. The
House cut about 25 percent off
the authorized figures.
Barring- unforeseen develop
ments, Knowland said, it should
be now unnecessary for Eisen
hower to call a special session of
Congress this fall. ,
The President himself said last
week he would call no such ses
sion unless it became absolutely
necessary.. 0
The Senate leadership—Know
land for the Republicans and Sen.
Lyndon Johnson of Texas for the
Democrats—stood in an alliance
against the move to -back away
from the committee increase in
foreign aid.
Spearheading the fight against
the extra money were Sens. El
lender (D-La) and Russell (D-Ga).
If sustained by the Senate, the
committee’s total would be sub
ject to further cuts in a confer
ence with the House. Indications
are the compromise might end Up
about midway between House and
Senate totals.
City Council
Meeting Notes
A hearing is scheduled by the
City Council for Sept. 9 to con
sider a petition by the Alaska
Telephone and Telegraph Co. for
a telephone rate increase.
The hearing will follow the
regular council meeting to be
held that evening.
New mercury lights are plan
ned by the city for B Street, the
road to hospital, and according to
City Clerk Scott will be control
led by an electronic device which
will automatically turp them on
or off, according to the amount
of daylight.
The Council also approve the
application of the North Star Din
ing Room for a restaurant license
to enable them to served beer
and wine with meals.
A grant-in-aid fund of $10,500
was turned over to the Nome
School Board for school expenses.
The council authorized fore
closure on property due to de
linquent property taxes and the
necessary legal action is being
taken so that the city can dis
pose of such property. A 25 per
cent penalty on all overdue sales
taxes, to become effective Oct. 30,
was also authorized by the coun
cil.
Lot 37 in Block 67 was sold to
Munz Airways for its assessed
valuation, and the west 25 feet of
Lot 6 in Block 13 was sold tp
James Kealiher.
There was considerable discus
sion on a letter from the Alaska
Dept, of Health requesting that
the city pay a greater percentage
of the cost of maintaining a pub
lic health nurse at Nome.
The, CAA was granted a five
year extension of their agree
ments with the city for control
site and quarters on property
they occupy in the city.
The Moonlight Water Ce., was
also granted its annual permit to
operate.
P. L. Reader submitted a bid
on a 15-ft. right-of-way existing
on his property on Steadman Ave.
Mr. McKinney requested the
purchase of a city lot now used
for a street east of the Fix-It
Shop.
GOVERNMENT
FORECLOSES
ON U.S. TIN CO.
A judgment was rendered yes
terday in the U.S. District Court
by Judge Walter Hodge against
the U.S. Tin Corp., in favor of
the plaintiff, the U. S. govern
ment.
The judgment followed a pre
trial conference which was held
here on July 8 at which time
both parties consented to a set
tlement by judgment.
The plaintiff is granted its
claim for $2,760,202.71 plus un
paid interest of $3,019 starting
from Dec. 31, 1955, also foreclos
ure of the mortgage on the Lost
River headquarters of the mining
company.
The defendants were not al
lowed anything on their counter
claim for $10,000,000.
Speed-Up Urged in U.S. Missile
Program Following Soviet Claim
For First Successful ICBM Test
By Edwin B. Haakinson
WASHINGTON, OP)—Sen. Jack
son (D-Wash* urged today that
the United States accelerate its
j missile program and boost pro
duction of long-range bombers in
the light of Russia’s claim to have
tested successfully an interconti
nental missile.
“Perhaps the Russians have
rendered us something of a ser
vice, if the Defense Department
will take heed of the danger,”
Jackson said.
“The Soviet announcement” he
said, shoud be the signal to the
| defense administrators to reverse
the missile slowdown.”
Meanwhile, the Eisenhower Ad
Major John Gillespie
Here to Take Over ANG
Advisory Group Duties
Major John Gillespie has ar
rived from San Francisco to as
sume the duties as head of the
Army advisary group to the 1st
Scout Battalion, Alaska National
Guard, taking over the duties of
Major Robert Kolb, who returned
to the States recently.
Major Gillespie is looking for
housing for his family as he plans
to be located here for the next
two years.
THE END OF AN ERA
DALLAS, <#>—Time and chang
ing habits have ended an era in
Texas & Pacific Railroad depots.
The railroad has shipped the
last of its 400 cuspidors to the
scrap heap.
, ministration issued a statement
! crediting the Soviets “with' sub
j stantial progress in the long-range
ballistic missile field.”
BUt this statement, put out by
Acting Defense Secretary Donald
A. Quarles, also said American
officials have “made it clear our
own work in this same field is
being pressed forward on a broad
front and with a high priority.”
The statement, cleared by the*
White House and the State De
partment, described as “greatly
exaggerated” the immediate mili
tary significance of what it called
an American-Soviet race to de
velop a missile capable of carry
ing a nuclear warhead 5,000 miles.
Quarles said “time differences
in terms of operational readiness
will probably not be very great
| one way oi* the other.”
The Administration’s statement
suggested the Moscow announce
ment “may have been timed in
relationship to the London talks’*
of the five-power disarmament
subcommittee.
Quarles noted that the Russian
claim was broadcast just when
the United States—with the beck
ing of Great Britain, Canada and
France—“was in process of pre
senting a very complete and rea
i sonable disarmament proposal,
including clauses dealing with
long-range ballistic missile' sys
tems.”
In London, Soviet Russia re
jected the West’s newest disarm
ament proposals and accused the
West of preparing for war.
Republicans Suffer Shattering Defeat
In Election of Proxmire in Wisconsin
By ARTHUR BYSTROM
MILWAUKEE, (#)—W i 11 i a m
Proxmire, a 41-year-old liberal
Democrat, scored a smashing up
set victory in Wisconsin’s special
election for the U.S. Senate seat
left vacant by the death of Joseph
McCarthy.
Proxmire, who became the first
Democrat elected to the Senate
by this state in 25 years, scored
his victory over Republican three
time Gov. Walter J. Kohler, a
staunch supporter of President
Eisenhower and twice a victor
over Proxmire in races for the
governor’s post.
The victory will give Senate
Democrats 50 seats compared to
46 for the Republicans.
In yesterday’s balloting, Prox
mire drew just over 56 percent of
the total vote cast.
Final unofficial returns gave
Proxmire 435,085; Kohler 312,
745; Howard Boyle 20,558; Doug
las Wheaton 2,281. Boyle and
Wheaton ran as McCarthy pro
gram backers.
Proxmire operates a printing
company at Waterloo, a small
town near Madison.
Next year there will be another
election for a regular six-year
Senate term beginning Jen. 1959.
* * *
WASHINGTON (JV—Democrat
ic Party headquarters called the .
outcome of the election'a “crush
ing repudiation” of President Ei
senhower and his administration.
Republicans from the White
House down conceded their party
had taken a bad licking.
Eisenhower himself was de
scribed as disappointed and feel
ing the GOP “took a bad licking.”
There wa& no question but that
Proxmire’s /smashing victory was
something of a shock all around
in capital political circles.
Paul Butler, Democratic Na
tional chairman, got out a state
ment calling the outcome “a clear
indication of a sweeping Demo
cratic victory in the 1958 elec
tion.”
“It demonstrates,” Butler said,
“that the average American voter
is fed upv with the lack of con
structive presidential leadership
and the increasing favoritism of
special interests which have be
come the hallmark of so-called
modem Republicanism.”