THE NOME NUGGET
Published Monday, Wednesday and Friday by the
NOME PUBLISHING CO.
NOME, ALASKA
E- P. BOUCHER . Managing Editor
CLINTON GRAY . Production Manager
Telephone: Main 125 $1.50 PER MONTH
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Entered as second class matter October 14, 1943 at the
postoffice at Nome, Alaska, under Act of March 3, 1879
Subscribers not receiving tneir papers by 5:30 p.m. call
Main 125 for special delivery. After 5:30 call Black 102
AN ALASKAN GETS MAD
Juneau Dmly Empire
To the average newspaper reader, - perhaps the
most meaningful part of his newspaper is matter which
deals with what is often euphemistically called “the
man on the street.” In Alaska, often as not, this average
man hasn’t seen a city street for months at a time. But
he still knows what’s going on, forms opinions on the
passing scene, and isn’t bashful about letting his neigh
bors know what he thinks about.
The communication below was received by Sen.
Frank Barr (D-Fairbanks) from a constituent and read
in the Senate. It is an unusual letter in that it reflects
the thinking of an awful lot of people in Alaska; yet it
comes from a man who describes himself as living
“in the brush.”
The writer’s stinging observations concerning
what was occuring in the Legislature are as penetrating
as anything said or written about it so far.
Read it and form your own opinion.
Senator Frank Barr
Territorial Senate
Juneau, Alaska
Dear Frank:
Many of us out here in the brush have been following this session
of the legislature and are becoming considerably alarmed at the out
come. We realize that taxes are a necessary evil and that we need
roads, medical help, schools, and pensions for the aged.
These we are willing to pay for, but we don’t see where we are
required to pay compensation to a bunch of transients to set around
Outside all winter and drink at our expense.
In other states the permanent civil population far outnumbers
the transients and those on Federal construction projects. I have
talked with many Alaskans and we all agree that if the Federal
Government thinks that these projects are necessary then let the
Federal Government pay unemployment compensation to anyone
so entitled and attached to a Federal project in Alaska in any manner.
Regarding your property tax, you are really tramping on our toes
and it is going to-be just twice as tough as it was before. We are going
to refuse to file and refuse to pay.
Less than one-third of Alaska’s present population can be called
Alaskans. The rest are here for one purpose and that is to make a
stake and get out.
Each year more and more Alaskans are forced to leave their
homes and seek employment in the cities. The mining is shot, the
trapping is shot, and the fishermen are on relief.
Taxes and freight are making prices unreasonable, and pioneering
today is almost non-existent, and now you people propose to tax it
into impossibility.
You continually expound on Alaska s potential, her glorious future,
her need for pioneering and development. Then you throw every
obstacle that you can find in the path of those of us that are trying to
make Alaska a great country. Soon we must either leave the country
or go on relief ourselves.
Now that you “Gentlemen” of the Legislature have taken just
about everything from us that you can, we think that it’s high time
that you do something for Alaska. Due to our territorial status and the
McCarran Act, we are practically a foreign country anyhow, so why
not send a memorial to Corigress requesting a 25% income tax exemp
tion for “All” Alaskans (based upon one year continuous residency)
We people out here in the brush are not very bright, so we send
people like you to Juneau to do our thinking for us, but we believe
that you are letting us down.
The federal Congress has created such a horrible mess of taxation
that they are making criminals out of otherwise honest people. The
United States is supposed to be a capitalist country, but the tax laws
and the labor laws are becoming so complicated that they kill every
incentive of the small businessman.
And you people in the territorial Legislature are making things
worse by patterning your rules after the federal regulations and
adding a few of your own.
It seems that you would do well to work out some form of lump
sum taxation that any simple person could figure out. Most any
reasonably intelligent person can run a small business profitably; but
even a genius can no longer run an honest business, as it is a physical
impossibility for any person to know or fully understand the huge
complicated mess that confronts us as Tax Laws.
Private business is the very foundation of our type of government
and our very way of life. Daily we hear of the evils of communism
and yet our own lawmaking bodies are gradually driving us into it.
Rather than create business incentive, you have succeeded in
burying it so deeply in red tape and paperwork that it all but ceases
to exist.
Here I am trying to run a little one man horse outfit. I need a
Business License, a Guides License, a Trapping License, a Fishing
CONQUEROR: AMERICAN STYLE
License, a Duck Stamp, a Pilots License and I.D. Cards, and if I do
my own work, a Mechanics License, two or three Airplane Licenses,
a CAB License, an Automobile Drivers License, Boat Licenses, Motor
boat Operators License, Federal Firearms Licesne—and I don’t know
what else just to run a two-bit outfit.
I have no idea where I stand except in one hell of a big mess and
I know that you don’t either. . . .
You fellows go down there to Juneau to raise taxes, spend money,
and add governmental departments like a drunken farmer building a
huge barn to house his crops with the money that he should have
spent on fertilizer. You fellows are killing the goose before it ever has
had a chance to lay the golden egg. . . •
... I wish it understood that only in a few places in this letter
do I intend the word “you” as personal, but rather as representative
of the entire Legislature. I do not intend to threaten or intimidate
you, but I do travel around Alaska a lot and I know Alaskans are
fast becoming aware of their political obligations.
I therefore intend to carry a copy of this letter with at all times
and a copy of your answer IF you send one. I shall also let it be known
if you don’t. Should you see fit to read any part of this letter on the
Senate Floor, I request that you read it all so that its meaning may
not be misconstrued. Thank you.
(s) THEODORE J. ALMASY
McGrath, Alaska
EXPLANATION OF EMPLOYMENT SECURITY
LAW ENACTED BY 22nd ALASKA LEGISLATURE
Following is a working explan-^
ation of the new Employment Se
curity Law of Alaska enacted by
22nd Legislature:
The rate of payroll tax to be
paid by employers will continue
to be 2.7 percent, but this rate
will apply to the first $3,600 of
wages paid to an employee during
any calendar year instead of to
the first $3,000 as under the pre
vious law. This change in the law
becomes effective with respect to
wages paid on or after January 1,
1955.
Another change is that employ
ers are now required to deduct
from the wages of employees, up
to the first $3,600 paid during any
calendar year, an amount equal
to one-half of one percent of said
employee’s wages. This, too, is
effective retroactively to January
1, 1955.
As was announced a few days
ago, the Employment Security
Commission postponed the mail
ing to employers of employer con
tribution reports and wage sched
ule forms until such time as the
legislature had concluded its ef
forts to amend the Employment
Security Law. Due to the radical
changes mentioned above, it is
now estimated that these report
forms will be in the mail about
April 20 and that employers will
be given until May 20 to prepare
their reports for the Jan.-Feb.
Mar. 1955 calendar quarter. Com
plete instructions will be sent to
each employer concerning the
changes.
It will be noted in the new re
port forms that information con
cerning how much each employee
earned during each calendar quar
ter is now required. This is made
necessary not only for the reason
above mentioned that taxes are
>-- -
now payable on each employee’s
wages up to the first $3?600 paid
to him during any calendar year
by any employer, but also benefit
eligibility is now contingent,
among other things, upon the
amount which the employee has
earned in his calendar quarter of
highest earnings.
To explain further, under the
old law any employee who earned j
$300 or more during a calendar
year was eligible to receive at
least some unemployment insur
ance benefits, subject to the pro
visions of Sec. 7, Chap. 99, SLA
1953. The new law requires that
the individual’s base period earn
ings must equal at least m times
the amount he earned in his high
est calendar quarter. In other
words, during the period from
July 3, 1955 (the date when the
benefit payments portion of the
new law becomes effective) to
June 30, 1956 the individual’s base
period will be the calendar year
1954. If the individual earned
during the calendar quarter July
Aug.-Sept. 1954 a total of $1,000,
he would have had to earn at
least $250 during the other nine
months of 1954. This amount of
earnings would entitle him to $17
per week for no more than 22
weeks. If he earned $360 in the
two months of July, Aug. and
Sept., he would have to earn at
least $90 during the other nine
months in order to be eligible for
$10 per week for a period not to
exceed fifteen weeks. If he earned
$3,200 or more during the months
of July, Aug. and Sept., he would
have to earn at least $800 addi
tional in the other nine months of
1954 in order to qualify for $45
per week for a period not to ex
ceed 26 weeks for an amount not
Sen. Jackson Asks McKay
Why He Refused to Let
Alaska RR. Build Spur
WASHINGTON, ‘(£>—Sen. Jack
son (D-Wash) has asked Secretary
of the Interior Douglas McKay
for a report on why he refused
to permit the Alaska Railroad to
build a five-mile spur.
Jackson, chairman of the Sen
ate Interior subcommittee on Ter
ritories, contended in a letter
made public Saturday that Mc
Kay’s refusal was contrary to the
recommendations of Interior De
partment experts, the Defense
Department and the Territory of
Alaska.
The proposed spur was for de
velopment of coal reserves for
military and civilian use.
Jackson said he was acting for
the subcommittee, which received
a petition from Max Barash, a •
Washington attorney represent
ing A. Ben Shallit, head of the
Cripple Creek Coal Co., Fair
banks.
“The case appears to warrant
a public hearing and inquiry in
view of the committee’s respon
sibilities for the development of
Alaska,” Jackson wrote.
He said “we have a most im
pressive record of official find
ing and recommendations” that
construction of the spur “will re
sult in very substantial sayings to
the military, to the territory, and
to civilian users, and that it will
contribute to the security and
rapid economic development of
the area . . .
“The mere assertion that no
funds \yere available . . . will
not be an adequate answer to the
issue.”
Ida’s Place Burns •
CHUGIAK, Uf)—Mr. and Mrs.
Frank Holly escaped with their
lives, a parakeet and a trunk—
nothing more—when fire de
stroyed their home early Satur
day. Damage was estimated at
$15,000.
The Hollys were owners of Ida’s
Place at Mile 38 on the Glenn
Highway, but were using the re
sort only as a dwelling for the
past year.
C.A.B. SUSPENDS NON-SKED5
FOR NOT MAKING REPORTS
WASHINGTON, UD—'The Civil
Aeronautics Board has suspended
six non-schedCile airlines for fail
ure to make the proper quarterly
or annual reports.
They were given until Aprd 29
to file the past-due reports under
penalty of having their authority
revoked. Trans-Alaskan Airlines,
Seattle, is on of the six. The oth
ers are based in the Midwest or
southern states.
to exceed $1170.
Under the old law dependents
were defined to include wives and
also, under certain conditions,
parents, older children and other
near relatives, whereas, the new
law limits dependents to unmar
ried children under 18 years of
age and unmarried children over
18 years of age who because of in
firmity are prevented from engag
ing in a gainful occupation and
are principally dependent upon
the claimant for support. This
change in dependents definition
takes effect on and after July 3,
1955, as do the other provisions
with reference to benefit amounts.
The disqualification provisions
in the new la w^ are practically the
same as in the old law with the
exception that the new law clear
ly states that women workers
who leave their jobs to follow
their husbands or to get married
are not eligible for unemployment
insurance until after they have
earned at least $120 in employ
ment subsequent to the date that
they voluntarily left their em
ployment. It also bars from unem
ployment insurance any claimant
whose unemployment is found to
be due to pregnancy and requires
earnings of at least $120 subse
quent to such unemployment be
fore she is again eligible.