THE NOME NUGGET
Published Monday, Wednesday and Friday By the
NOME PUBLISHING CO.
NOME. ALASKA
T*>nh<>ne: Main 125 P. O. 61®
|J 50 PER MONTH $16.00 A YEAR
W A. Boucher .-.Owner-Publisher
Entered as second class matter October 14. 1943, at the postoffice
at Nome, Alaska, under the Act of March 3, 1879.
V %
Nome, Alaska, Monday, February 5, 1951
INDUSTRY IS OUR STRENGTH
(By George S. Benson, President, Harding College)
Communism cannot conquer the world unless it can
first cripple American industry. Stalin knows this. He
knows that six years ago, at the height of World War n,
American industry was producing as much war materi
al as all the other nations combined. In fact, American
made tanks and planes and guns flowing to Russia help
ed the Red Army hold Hitler at bay.
It’s doubtful that Red planes at this time could reach
much of our industry with air-borne atomic bombs. So
Stalin’s present strategy almost certainly includes a
plan to sabotage our industrial production—through
cunning internal assembly line sabotage and paralyzing
strikes fomented by Communists who have wormed
into influential places within industrial employee
groups. If the “war for survival” does come, a strike
shutdown of length in one of our key industries could
possibly mean the difference between victory or defeat.
In every nation outside the Iron Curtain the Com
munist Party membership, both open and secret, is con
centrated in industrial employee groups. Probably they
are strongest in France, Italy and England, where Com
munist-led strikes which have flared up many times in
the last few years have revealed their power to cripple
industry. But thev are in strategic positions here too.
According to the FBI, most of the 55,000 known Com
munists are deployed in the industrial unions. It is sig
nificant to note that when the Communists took over
Russia in 1917 thev did it with fewer party members in
Russia than they have in the U. S. today.
J. Edgar Hoover, FBI chief, says: The Communists,
as a basic principle of infiltration, are interested in pos
sessing strength in heavy industry: that is, coal, steel,
rubber, automcbiles, etc. It is here that, in event of an
emergency, they can do their greatest harm . . . More
over, in these industries one Communist Party member
lr°‘^ a s+>-ate<nc iob can wreak damage completely
oat of proportion to his own strength.”
"T "*' ough this ‘heavy-industry concentration policy’
the Communists are able to exercise a power far in ex
cess of their numbers,” the FBI chief said in an inter
view with the United States News. “In fact, one of the
highest ranking leaders of Communism in the U. S. has
openly admitted: “The Communist Party bases its work
directly upon the mills, mines and factories. Its princi
ple is to make every shop a fortress for Communism... .
GROWING PAINS
I
' I
» » .c' t
pRDe> ^
/
Lifting The Lid i
At Juneau
(Continued from Page One)
cense fees of $50 for brokers and
$25 for salesmen. The House
knocked out the sestion which
would have allowed a proposed
commissioner to exempt those al
ready in business from taking ex
aminations.
Kay said the bill was asked by
Anchorage Real Estate Board to
“check fly by nighters” who could
move outside the city if the city
ccruncil tried to control them.
Monday, February 5. 1951
JUNEAU, {#)—A proposal for a
territorial bond issue to finance
^ school construction is likely to
come before the legislature that
is starting its third week today.
Senate president Gunnard Eng
ebreth (R-Anchorage), who voted
against a similar measure in the
1949 session, says he intends to
introduce a $15,000,000 bond issue
resolution in this session. He said
changing times have changed his
mind.
It has to be in the form of a
resolution to Congress, asking
permission for a bond issue. Un
der the Organic act, the legisla
ture can’t actually vote a bond is
sue without congressional sanc
tion. That’s one of the numerous
congressional apron strings to
which the territorial legislature
is tied.
Whether such a bond issue could
w i n the legislature’s approval,
even if Congress were willing, is
a moot question. While Engebreth
has changed his mind on the issue,
many of the senators are talking
firmly of sticking to a “pay as we
go” basis.
If the _ bonding proposal does
not win tjie necessary' territorial
and congressional approval, said
the Senate president, “then I see
no school construction program
for the next biennium unless we
do either of two things—1. In
crease taxes or, 2. Reduce other
government expenditures.”
“In the cities we bond for sew
ers, street improvements, and light
facilities, and I see no reason why
we shouldn’t do it to solve the
crying need for school facilities,”
he declared. “Some may argue we
should wait and build schools la
ter, but children don’t wait. They
grow.” (The Anchorage business
man and ex-teacher is the father
of six of them.)
Explaining his changed view
from 2 years ago, he commented:
Circumstances are different
now. Then we had just passed
three fundamental tax measures
and some minor ones. It appeared
unwise to request bonding since
we didn’t know what the revenue
I bills would produce and whether
i they would be held constitutional.
Major tax bills now have been
upheld in court and it is proper
| to consider further the problem
of adequate school buildings.
“Also two years ago, it appeared
that impending statehood action
in Congress might be affected ad
I versely by a bond issue request.”
Engebreth expressed the belief
that if federal aid is available,
the need would hot be as great as
j $15,000,000. But he added: “1 dbh’t
j want to aake the chance of Hitch
: ing the school prdbiem to the Un
certain federal possibility.
i% “We would better take the prob
lem in our own hands, borro# the
money and provide for repaying
over a 15-year period—a million
a year.
i “If the cigaret tax <Sc a pack)
i * _. _ _
were earmarked for payment of
such a bond issue, it could meet
the problem. That tax now brings
in nearly half a million a year
(earmarked for schools). Certain
i
ly another half million could be
made available annually from the
treasury for such a worthwhile
project.”
Engebreth said he does not fa
vor boosting the cigaret tax to 5c
a pack as some legislators have
proposed.
“The margin on tobacco is so
small that we couldn’t expect the
merchant to absorb all of an add
ed 2c tax,” he said. Some law
makers have expressed the opin
ion retailers would absorb such a
tax. They argue that the retailers
generally upped the price a nick
el a pack when the 3c tax was put
on.
Engebreth said the most acute
need for school buildings is out
side incorporated districts and his
own Third division “has grown
so rapidly that there is more need
than in any other part of the Ter
ritory.”
The Territorial Senate called
upon the nation’s leaders today to
ban Japanese fishing in Alaskan
or Canadian waters in the propos-:
ed peace treaty with Japan.
A resolution adopted unani
mously asks that the United States
Senate “refuse to ratify any peace
treaty with Japan that does not
have full and adequate provisions
for safeguarding fisheries in the
coastal water of Alaska and in
the northeastern Pacific Ocean ad- j
jacent theerto.”
The resolution was whipped
through three readings and final
passage in record time after in- j
rroduction this morning by Elton j
Engstrom, Juneau Republican. It!
was sent to the House for approv
al before forwarding to President
Truman, the secretary of state and
Congressional leaders.
The Senate passed its first bill
of the session designed to change
an existing law. Introduced by
Sen. Frank Barr, Fairbanks Demo
crat, it would give courts discre
tionary authority to sentence
youths under 19 to 20 years for
incestuous rape or rape of juven
iles. A life sentence now is man
datory regardless of age of of
fenders. The bill now goes to the
House.
The House postponed indefinite
ly, 14 to 10, a memorial to Con
gress asking a 20 per cent reduc
tion in the federal income tax for
Alaskans.
The motion to table Rep. Jack
Conright’s memorial was made by
Rep. Wendell P. Kay in the first
split in the solid Third Division
lineup, but on the final vote Kay
voted against his own motion and
restored the solid Division front.
Supporters of death by post- j
ponement argued they were op
posed because if Congress heeded
such a request it also would re
duce the Territorial income tax
take, which is 10 per cent of the
federal tax. Mrs. D^ris Barnes,
of Wrangell added:
“If we are to receive statehood
we had better show we are ready
and willing to bear our full share
Of tiie load.”
Rep. Stanley McCutcheon, An
chorage, argued for the memorial,
saying Alaskans already are pay
ing more than a fair share at fed
eral taxes because of higher liv
ing costs and wage scales make
Alaskans' income taxes 25 per
cent or more higher than stateside.
JUNEAU, </P)—The Territorial
House re-passed Saturday a bill
It concentrates its work upott the heavy industries and
those of a war character*.”
that was enacted into law during
the i949 special session.
It officially recognizes publish
ed annotated laws as the code of
Alaska.
Hep. Jack Conright (D.-Anchor
age) who introduced the bill, ex
plained that the re-passage was
considered advisable because of
the cloud of doubt over the legal
ity of the special session. The
House approved the measure
unanimously.
Most of the Saturday morning
and afternoon House sessions
were devoted to a hearing on bills
to increase unemployment com
pensation benefits.
John McLaughlin, unemploy
ment insurance director, testified
•he believed there was sufficient
money in the fund to care for in
creases adequately. Increase would
raise benefits to $30 weekly from
$25 and allow persons with de
pendents to draw up to 60 percent
more than a single person in a
benefit year.
Some criticism was leveled by
Fourth Division House members
at testimony that the fynd paid
out $3 last year for each $2 taken
in, and that 47 per cent of the
payments went outside the Terri
tory.
The bills were to reach the floor
for possible amendment attempts
oday. They were carried over to
head the Monday calendar.
Oil Development
Being Planned
Near Cordova
Continued from Page One)
discovered oil seepages near the
head of Katalla Slough in 1896.
According to U. S. Geological
Survey reports, 37 shallow wells
were drilled on two unpatented
mining claims between 1901 and
1932. Eighteen wells were placed
in production ranging in depth
from 366 feet to 1310 feet in
depth. Many of the early wells
were abandoned because of loss
of drilling tools before they reach
ed their objectives.
The 18 shallow wells placed in
production brought in approxim
ately 154,000 barrels of high grav
ity, paraffin base oil, ranging from
41Vfe degrees to 45 degrees Baume.
Most of the production wells and
some of the non-producing wells
yielded natural gas.
“The development of a produc
ing field in the Katalla-Yagataga
area can have a stimulating ef
fect on the progress of Alaska,”
Gellenbeck said.
“As a substantial part of the
whole project is in the hands of
Alaskan residents, a producing
field will bring hew wealth and
new capital to the Territory. It
can be the industrial ‘revolution*
Alaska needs to forge ahead.
Associated with the Northern
Development Company in the
proiect is Herb Hilscher of Fair
banks. Abstract work was done
by Cuddy and Kay, attorneys of
Anchorage.
Regarding Actual drilling for
large scale production, Gellen
beck said “Just as soon as we get
the green light ifrom the Land Of
fice, we Will talk ttirkey with the
producers. Thfe U.S. is 750,000
barrels of oil short per day, and
new fields are needed now as
never before.**
Hospital News
Discharged from the hospital on
Saturday, Mary Goff; Paul Carl
son on Sunday and Thomas Drake
today.