Oldest Newspaper in Alaska. Member of The Associated Press
DEVOTED TO THE BUILDING OF A BETTER NOME AND THE SECONI) DIVISION.
NOME IS THE STRATEGIC WORLD FLIGHT AIR BASE—ESPECIALLY ADAPTED FOR COMMERCIAL ANI) MILITARY AVIATION
THE NOME DAILY NUGGET
VOL. 36 NO. 55 NOME, ALASKA. FRIDAY, MARCH 8, 193. Her Copy Ten Cents
Huey Long Lambasts Hugh Johnson
ATHENIANS FEAR AERIAL BOMBING FLEE CITY
Federal Housing Administration To Help Nome Build
HOUSE GETS EVEN
WITH THE SENATE
—KILLS TWO BILLS
(By The Associated Press)
JUNEAU, March 8 — The senate passed the memorial
asking for the construction of the International Highway,
and also the House joint memorial asking for the immed
iate payment of the soldiers bonus, without mentioning
either the Vinson or Pattman Bills.
It indefinitely postponed the house memorial asking
Congress to give the Legislature the power to refer ques
tions to a vote of the people.
JUNEAU, March 8 — With the hope of confining the
limited fishing in Bristol Bay arear this season to resident
fishermen, Senator Campbell by unanimous consent intro
duced a resolution asking the Governor and Delegate to
make an effort to see that no outside fishermen were allow
ed to take part in the catch. Later in the day, Thursday,
the measure was passed, and the governor asked to wire the
request to Secretary Roper and Commissioner Bell.
The season was recently opened in Bristol Bay for a
limited pack of a quarter of a million cases.
The house killed the senate measure for a gasoline tax
aimed at airplanes and also its companion measure—the re
duction of the automobile license tax.
JUNEAU, March 8 — The senate approved the ten
thousand dollars for the school at Craig, and also the six
teen thousand dollar hospital for Kodiak, when the build
ing is constructed by federal grant.
Among the house bills killed by the senate wete the
following; for a welfare commission; the extension of terms
of mayors from one to two years; allowing for the removal
of fire hazards; a long list of harbor improvements; asking
for an icebreaker for Bering Sea; protesting against the con
ditions of certain Road Commission camps.
Walker by unanimous consent introduced in the house,
a bill which provides that prisoners serving sentences be
cause of their inability to pay fines, may take the paupers
oath and thus be freed of fines. The measure is in keeping
with the federal statutes.
Steamship Lines
And Employees
Reach Agreement
(By The Associated Press')
SEATTLE March 8 — Negotiators
announced the successful conclusion
of the hours and wage discussions
between steamship lines and employ
ees .over operations in Alaska. The
terms of the agreement will probab
ly be announced today or tomorrow.
Poughkeepsie
Regatta Fixed
For June 18th
(By The Associated Press)
NEW YORK, March 8 — The
Board of Stewards of the Intercol
legiate Rowing Association- fixed
June 18th as the date of the 1935
Poughkeepsie Regatta. 1
Sir Campbell
Makes A New
Auto Record
(By The Associated Press)
DAYTONA BEACH, Florida,
March 8 — Sir Malcolm Campbell
drove his huge "Blue Bird” racing
car at a speed of 267.816 miles an
hour, Thursday, which is a new
world's record, but still short of his
goal of three hundred miles an
hour. The past record was made by
Campbell two years ago and was
272.108 miles an hour.
Postmistress For
42 Years, Retires
(By The Associated Press)
MEDICAL LAKE. Wash., March
8 — Miss Theo Hall today retired
after being postmistress of this office
for forty-two consecutive years, a
record in the United States.
FEDERAL HOUSING ADMINSTR ATION
TO HELP RE-BUILD NOME
The following letter was receiv
ed by Aimer Rydeen. Clerk of the
Court for the Second Division, from
John E. Pcgues, Director of the Fed
eral Housing Administration, Jun
eau Alaska regarding the details of
the plan to help Alaskans improve
and renovate their homes. Follow-1
ing is the letter:
Juneau, February 14, 1935.
Aimer Rydeen, Nome Alaska.
Dear Sir:
Since you were one of those un
fortunate enough to lose their homes
in the recent fire which did so much
damage to Nome, it occurred to me
that it might be of interest to you
to learn how the National Hous
ing Act could be of assistance to you
in building a new home or repairing
your former residence, if it were
completely destroyed.
The National Housing Act is div
ided into two parts—-the first hav
ing to do primarily with improve
ment and repair of existent homes,
and the second providing a means
whereby persons of average income
may now quite easily obtain money
to construct new homes.
Money for these purposes comes
from private financial institutions,
but credit is much easier than here
tofore by reason of the fact that the
Federal Housing Administration un
dertakes to insure, and does insure,
such institutions against loss
Under Title 1 it is provided that
an owner of a home may apply to
an approved bank for a sum not in
excess of $2,000 and not less than
$100 for making repairs. This mon
ey is obtained on a promissory note,
and the Federal Housing Administ
ration does not require that there
be any endorsers on that note. Neith
er it is necessary for the borrower
to offer his home or any other pro
perty he may possess as security. In
other words, the bank approves or
disapproves the loan solely on the
credit rating of the applicant and,
of course, it follows that since the
Federal Housing Administration is
insuring the bank against loss, it
will now be able to make small
loans of this character where it
could not do so before.
Moreover, there is another provi
sion in this modernization program
that means much to the borrower.
He repays the loan over a period,
between one and five years, which
may be agreed upon, and you will
see the advantages that come to
him through that regulation. Pre
viously of course it was not possible
for banks to write promissory not
es for any extended period, but the
National Housing Act changed all
that with respect to this type of
loan.
The Federal Housing Administra
tion also establishes the interest rate
which the lending institution may
charge, and I think you would be
interested in knowing that Alaskans
do not have to pay any more than
residents of continental United Stat
es. It is provided that the financial
institution may not collect as inter
est and—or discount and—or fee of
any kind, a total charge in excess of
an amount equal to $5 discount per
$100 original face amount of a one
year notp to be paid in equal mon
thly installments. It is intended
that whenever possible these loans
shall be repaid in monthly install
ments since banking experiencej
shows that this is the surest way
to retire a small loan. There are,
however exceptional cases where
the income of the borrower is en
tirely on a seasonal basis, and it
would be difficult if not impossible
to make payments each month. Per
sons falling within this category
are taken care of by a regulation
which enables the bank to collect
on quarterly, semi-quarterly, semi
annually or even annual install
ments.
This type of loan you may care
to know, will be made on business
properties as well as homes.
There is another regulation with
reference to the modernization pro
gram which out to be especially ap
pealing to residents of Nome. That
is the one providing that if anyone
owns ground, or holds sufficient tit
le to it he may make a moderniza
tion lopn for the construction of a
new residence. It is quite conceiv
able that the $2,000 maximum loan
which can be made would be suffi
cient in some cases to erect the type
of home a small family might desire,
i or a loan might be obtained and the
money secured thereby added to
other funds already possessed or ob
tained elsewhere by the potential
builder in the erection of his now
home. ,
However, it is contemplated that
Title 2 can be of especial help to
Nome in view of the fact that so
much home building will occur there
within the next few months. Title
2 sets up a mutual mortgage insur
ance system. Under its terms it is
possible to borrow up to $10,000 for
a maximum period of 20 years for
construction of family dwellings,
housing from one to four families.
Approved institutions are empower
ed to lend up to 80'” of the apprais
ed value of the completed property
As security for the loan the banks
hold mortgages on the property
whch is constructed with the mon
ey thus obtained. For the use of
the money borrowed, the home
builder pays a basic simple inter
est charge of 5%, plus a possible
service charge to the bank of ■/•> of
1% and in addition xk of 1 % in
surance premium which goes to the
Federal Housing Administration. An
amortization schedule is set up in
each case so that the borrower pays
oil his mortgage at an agreed month
ly rate, which is the same for the
entire period during which the bank
holds the mortgage.
Doubtless the four outstanding
parts of this plan have already pre
sented themselves to you. First,
mortgages on homes may be written
for a period as long as twenty
years, which is much longer than
the practice has been up to this time.
Second, one may now obtain as
much as 80% of the money needed
for building instead of the 40% or
50%, or less which lending institu
tions had been in the practice of al
lowing on first mortgages. Third,
certain provision is made for the re
tirement of the mortgage by reason
of the fact that payments are made
monthly. Fourth, interest rates for
home construction will be on a
greatly lower level than ever before
in Alaska.
There is still another benefit
which ought to be cited. In all prob
ability the insurance premium paid
(Continued on Page Two)
HUEY LONG SAYS
THE WHITE HOUSE
IS AGAINST HIM
(By The Associated Press)
WASHINGTON, March 8 — Opening the floodgate of
invective. Senator Huey P. Long, Thursday night asserted
that the White House had “declared war on him, and that
the leadoff man had been Hugh S. Johnson under whom the
NRA became such a national scandal’; and that Roosevelt
had let Johnson slide out as the scapegoat.”
Long made his assertions in a radio address prepared
and delivered as an answer to the speech of Johnson’s last
Monday night, in which Johnson called the Louisianan and
Father Charles F. Coughlin, Detroit priest, “Mad Pied
Pipers,” who 'ver« appealing to the “luhati<* fringe:; ' of the
people.
Long termed Johnson as one of those satellites loaned
by Wall Street to run the government._
SAYS CLERGY HAS NO
RIGHT DISCUSS POL
ITICS FROM PI PIT
(By The Associated Press)
PROVIDENCE, R. I.. March 8 — General Hugh S.
Johnson said that the clergy had the right to discuss social
problems but no right to form political organizations by the
use of religion and emotion instead of exposition and argu
ment.
Although Father Charles E. Coughlin was not men
tioned by name, the Detroit prelate is considered to have
been censured for his recent attacks against the new deal.
Johnson spoke before the Rhode Island Bar Association
meeting, and predicted the ever widening field of federal
supervision over the nation’s commerce, sanctioned by the
nation’s courts.
Residents Of
Ancient Greece
Capital Flee
fI’.v The Associated Press)
ATHENS. March 8 — Residents,
alarmed at the prospect of a rebel
bombardment of Greece’s ancient
capital, flocked to the comparative
safety of outlying districts.
Every available piece of artillery
has been mounted on the ramparts
of Piraeus, to repel the expected at
tack, Apprehension approaching
terror gripped the populace.
From Sofia, Bulgaria came, re
ports of violent artillery fire, heard
at the Bulgarian frontier.
Mussolini, in the interest of Italy
has ordered three warships to the
Aegian Sea area.
The next regular session of dis
trict court will be held at Valdez,
only minor eases being taken up
A session will be held early in April
at Seward..
Subscribe Fur The Nugget
Up-Side - Down
Stomach \ietim
Needs Transfusion
(By The Associated Press)
FALL RIVER, Mass., March 8 —
A blood transfusion is considered
for Alyce Jane McHenry, to alev
iate her anemic condition, after her
operation for an upside down stom
ach condition, Otherwise her con
dition is “very satisfactory.”
Power Issue
Before Senate
WASHINGTON, March 8 — The
power issue was called to the at
tention of the senate today as they
met with the hope of reaching a
showdown before nightfall on the
work relief bill.
The American Liberty League
wanted them to find out if addi
tional government power projects
were planned, like those contem
plated under work relief legislation.