HE NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS___
VOL. LXII No. '76 NOME, ALASKA, FRIDAY, JUNE 24, 1960 Per Copy 15tf
Transfer of BPR to State Public Works
Will Have Five Million Dollar Impact
JUNEAU, UP) — Another huge
step in the transition from lerri- J
torial government to state govern
ment is to be completed this Fri
day. It’s financial impact will be
felt two years later.
On Friday, the State Depart
ment of Public Works will have
assimilated an estimated 700 of
the 85G persons who were work
ing for the U.S. Bureau of Public
Roads in Alaska when Alaska be
gan the transition from territory
to state.
The department said today that
all of the employes who were
with the BPR when the transi
tion period began have been in
vited to become state employes.
Some refused to join state ser
vice. Some quit the BPR in nor
mal turnovers before they could
be hired by the state. Some took
BPR jobs in other sections of the
nation.
Of the estimated 700 perman
ent BPR employes who have in
dicated a desire for state employ
ment or who already have taken
state jobs, some will remain on
BPR jobs during the balance of
the construction season before
adding their names to the state
employe rolls.
Even though the state’s pay
roll is going to take an estimated
700-man jump, federal funds will
absorb most of the financial wal
lop for the first two years.
The Department of Public
Works estimates road mainten
ance in the state will cost about
5 million dollars for the 1961 fis
cal year, starting Friday, and
about the same for the 1962 fiscal
year starting July 1, 1961.
But unobligated Bureau of Pub
lic Roads balances will cover
roughly 90 per cent of mainten
ance costs for the first two years
under actual state operation, leav
ing Alaska with a total road main
tenance bill of about one million
dollars for the two fiscal years.
While the 5 million dollar fig
ure covers the entire cost of road
maintenance—the major share of
that money, about 75 per cent of
it, goes out as wages and salaries.
After the 1962 fiscal year fades
away on June 30, 1961, the state
will have to bear the full cost of
road maintenance itself.
It means, simply, that the legis
lature is going to have to dig
down and come up with an extra
5 million dollars a year to keep
the stat’es roads in order.
China’s Price
For Coexistence
Is Formosa
TOKYO, 9P>—Red China indi
cated today that acquiring For
mosa might be Peiping’s price for
going along with Soviet Premier
Khrushchev’s policy of peaceful
coexistence with the capitalist
world.
Mme. Sun Yat - Sen. a vice
president of Red China and widow
of the founder of Republican
China, declared: “China is willing
to coexist peacefully with any
one, even imperialism. In fact, we
have to coexist with it because
imperialism exists as an objective
reality.”
But she added: “We will not al
low U.S. imperialism to rob us of
our own territory (Formosa!. We
have not won, after untold sacri
fices, the independence of our
nation and the benefits of our
Socialist Communist revolution
just to give them away under the
false illusion of maintaining peace
with insatiable imperialists.”
Mme. Sun Yat-Sen, now 69, is
the former Soong Ching-Ling and
a sister of the wife of Generalis
simo Chiang Kai-Shek, president
of Nationalist China, which con
trols Formosa.
Floods Sweep Huge
Section of Texas Coast
HOUSTON, Tex., <#) — Swift
flood waters raced through a huge
section of the Texas Gulf coast
Sunday sweeping some persons to
their death and forcing thousands
from their homes.
The floods, caused by steady,
heavy rains since Thursday,
were called the worst disaster to
hit some towns since a 1945 hur
ricane. Eight persons drowned
since Thursday. Two are missing
and presumed dead.
Flood waters began to recede
Sunday night but more thunder
showers were forecast for today.
Up to 30 inches of rain fell
in some areas since Thursday. |
i Munitions Dump in
Havana Explodes
HAVANA, liP—Cuban army of
ficials today said it was prema
ture to say anything about the
origin of a munitions dump ex
plosion that rocked Havana with
tse force of an earthquake, killing
one person and injuring more
than 50.
Fidel Castro ordered the bomb
site sealed off immediately after
the blasts Sunday night stunned
Cubans in the capital just before
7 p. m. and shattered windows
over a four-mile area.
The explosions — two small
blasts and one terrific outburst—
created a frenzy in the capital.
Crowds rushed wildly about the
streets, some s plattered with
blood.
One young militiaman poking
angrily about the shattered glass
fronts muttered: “Los Ameri
canos, los Americanos.”
Castro himself had a narrow
escape when his car crashed into
another car racing to the scene.
He jumped into another car and
kept going.
Khrushchev Will Not
Retreat From His
Coexistence Policy
MOSCOW, tP—Soviet Premier
Khrushchev declared Saturday
that the Soviet Union will not re
treat a single step from its policy
of peaceful coexistence with cap
italist states.
His speech to the closing session
of the Thiid Congress of the Ro
manian Workers Party appeared
to be a sharp blow aimed at Com
munist critics.
The text of Khrushchev’s re
marks—which apparently lasted
nr more than 15 minutes—was
distributed here by Ta ■
On the other hand, the news
agency has not distributed the
Peiping speech of Gen. Li Chih
Min in which Red China’s disap
proval of peaceful coexistence
was sharply expressed.
Ike Rebuffs Critics
Of Personal
Diplomacy
WASHINGTON, I/P— President
Eisenhower said tonight that al
though he has no plans now for
another overseas trip, “I would
not hesitate a second” to venture
abroad again in the cause of world
peace.
The United States must “never
be bluffed, cajoled, blinded or
frightened” by Communist tactics
aimed at splitting the free world,
including Red demonstrations
against foreign trips by the U.S.
President, Eisenhower said.
Eisenhower spoke in a nation
wide radio-TV report to the Am
erican people a day after return
ing from a two-week journey to
the Philippines, Formosa, South
Korea and U.S.-held Okinawa.
The President attacked what he
termed Communist-inspired dem
onstrations against his trip. He
also gave a basic defense of his
undertakings in personal diplo
macy since he came to the White
House in 1953.
He noted that now, since he is
near the end of his presidential
tenure, the prospects are he will
not be going abroad as President
again.
By implication, Eisenhower also
rebuffed criticism from some
Democrats in the afermath of the
summit conference blowup and
cancellation of his Japanese visit.
Eisenhower Meets with
Nixon and Herter Before
Making Report to Nation
WASHINGTON, W— President
Eisenhower held long conferences
today on international and other
affairs with Vice President Nixon
and Secretary of State Herter.
They discussed, among other
things, the President’s planned
television-radio report to the na
tion tonight on his 23,000-mile
goodwill mission to the Far East.
Eisenhower is reported to feel the
trip strengthened U.S. ties with
allied countries he visited and was
a big success despite cancellation
of his visit to Tokyo.
The chief executive returned
to the capital Sunday exactly two
weeks after setting out on the
trip which took him to Alaska,
the PhiliDpines, Formosa, Korea
and Hawaii.
Stepping jauntily down the
ramp from his jet airliner at An
drews Air Force Base, Eisen
hower appeared tanned and
rested after six days of golfing
in Hawaii.
Senate Passes Legislation
Providing Equal TV-Radio
Time to Major Parties
WASHINGTON, OP)—1The Sen
ate Monday passed legislation de
signed to permit radio-TV broad
casters to provide equal free time
this year to Republican and Dem
ocratic presidential and vice
presidential nominees.
The resolution does so by sus
pending, for the duration of the
campaign, the equal time provi
sions of the Communications Law
to eliminate the requirement that
minority party candidates also be
g'ven equal time.
The broadcasters said they
were willing to make available
free time equally to the major
party rivals.
The House has yet to act on
the resolution.
Reds Walk Out of Disarmament Talks
U.S. Blames Russia
WASHINGTON, lm—The United
State accused the Soviet Union
today of shattering “the hopes of
all peoples” for progress toward
peace by walking out of the Ge
neva disarmament conference.
It appealed to the Soviets to
return to the negotiations.
A statement issued by the State
Department denounced wrecking
of the 10-nation parley as “both
deplorable and disappointing.”
The action shows a determina
tion to avoid any further discus
sion on problems of controlled
disarmament within the meeting,
the statement said.
It announced that Allied repre
sentatives “intend for the time
being to remain at the negotiating
table.”
“It is our earnes hope that the
Soviet bloc will reconsider its
irresponsible action and join with
the Allied nations in a determined
and continued search for a just
and durable peace.”
However there is no real hope
that Soviet Premier Khrushchev
will heed the plea to reconsider.
Mr. K. Blames The West
GENEVA, tft — Soviet Premier
Khrushchev, in a note to heads of
Western governments blamed the
West for the breakdown of the
Geneva disarmament talks.
The note charged the five West
ern powers in the talks were us
ing Soviet participation “as a
screen to cover the arms race un
leashed by the West, and for de
ceiving the peoples.”
Grafters Get Most
Of Sister Kenny
Polio Funds
ST. PAUL, Minn., (jfi — State
investigators charged today that
money intended for the Sister Eli
zabeth Kenny Polio Foundation
was improperly diverted during
its nationwide fund raising drives.
In one campaign in 1956, Atty.
Gen. Walter Mondale said, 98
per cent of the public contribu
tions were paid out for mailing,
promotion and other fund-raising
activities, leaving 1V4 per cent for
medical purposes.
From 1952 through 1959, he
said, only 47 per cent of the
$30,674,000 contributed to the
foundation was left for hospital
ization, treatment, research and
training facilities.
Mo'.idale threatened legal action
to recover the funds.
A few hours before Mondale
made public his report, four
members of the staff in Minnea
polis threatened to resign unless
there is a major reshuffling of the
foundation’s board of directors
and executive committee.
Specific irregularities, Mondale
said, involve payment of money
by a Chicago mailing company
to Fred Fadell & Associates, Min
neapolis public relations agency,
and payment by that agency to
Marvin Kline, former executive
director of the Foundation.
HOUSE NIXES PROPOSAL TO
REGULATE RADIO AND TV
WASHINGTON, UPt—The House
overwhelmingly turned down a
proposal today to allow the fed
eral government to regulate tele
vision and radio networks.
GENEVA, Wl — The Soviet bloc
walked out of the 10-nation dis
armament talks today. The Rus
sians and their Communist allies
curtly ignored a new American
plan for a world disarmament
treaty.
Soviet Deputy Foreign Minister
Zorin and his colleagues charged
the West had refused to nego
tiate. Zorin said the Soviet Union
will place its new plan for ‘‘gen
erally and complete disarma
ment” before the U. N. General
Assembly.
Poland’s Marian Naskowski,
chairman for the day, rejected all
the Western delegates’ demands
to be heard and, after recognizing
all the Soviet bloc delegations in
turn, joined in the walkout.
The Western delegations de
cided to continue the meeting
alone under the chairmanship of
British Minister of State David
Ormsby-Gore. U.S. delegate Fred
erick M. Eaton then presented the
new American disarmament plan,
which was still under negotia
tion among the five Western dele
gations.
Walking out with the Russians
were the delegates of Czechoslo
vakia, Poland, Romania and Bul
garia. Remaining were the rep
resentatives of the United States,
Britain, France, Italy and Canada.
Zorin’s announcement brought
an end to the conference which
first opened on March 16, and re
cessed for six weeks before and
after the abortive summit meet
ing in Paris.
High Court Denies Review’
To Bernard Goldfine
WASHINGTON, UP) — Bernard
Goldfine, New England textile
magnate, today was denied a Su
preme Court review of his con
viction for contempt in federal
court in Boston.
The high tribunal’s action also
applied to Goldfine’s secretary,
Mildred Paperman, who was con
victed on the same charge. She
and her employer filed a joint
appeal with the Supreme Court.
Goldfine and his secretary were
accused of disobeying a court or
der to produce records sought by
the Internal Revenue Service in
December 1958. The service was
investigating the tax status of
Goldfine’s textile mills.
Washington and Oregon
Governors Agree On
Alaska to Mexico Highw'ay
SALEM, Ore., UP) — A Pacific
Coast highway reaching from Ju
neau, Alaska, to Lower Califor
nia, proposed by Gov. Albert
Rosellini of Washington, was en
dorsed Saturday by Oregon Gov. .
Mark Hatfield.
He also said that he interprets
Rosellini’s proposal as an implied
promise that Washington would
help pay for building of a bridge
across the Columbia River mouth.
Typhoon Olive Rakes
Manila, Kills 100 Persons
MANILA, UP)—Nearly 100 per
sons were reported dead and sev
eral hundred were missing to
night after Typhoon Olive raked
the main Philippine Island Luzon.
Manila, a city of 2,000,000, was
partly paralyzed by the 80-mile
an-hour winds and driving rain of
the storm, which hacked a patlr
across Luzor late yesterday and
early today.