OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
63rd Year No. 9
NOME, ALASKA, MONDAY, JANUARY 22, 1962
Per Copy 15^
JFK Reports U.S.
Met Recovery
Aims in 1961
WASHINGTON (/ft — President
Kennedy reported today the na
tion met its recovery aims in
1961, is making “another giant
stride” toward full employment
this year, and can attain a “stag
gering” $600-billion worth of pro
duction in 1963.
The time to erect a defense-in
depth against future recessions is
this prospering moment, Ken
nedy told Congress in his econo
mic report. It was the third and
last of the major White House
messages to the new session.
The anti-slump weapons need
ed, he said, are his twin plans—
sourly greeted toy most Republi
can Congress members — for
standby Presidential powers to
cut taxes temporarily and unleash
federal money for quick-acting
public works.
Kennedy urged Congress to let
him trigger up to $2 billion of
lending, spending and matching
funds into the works plan when
joblessness reaches danger points
which he defined.
He also spelled out for the first
time how much tax-cutting lee
way he wants — enough, he said,
to throw $5 billion of new buying
power into a faltering economy
in six months, or, if extended
with Congress’ assent, $10 billion
in a year.
The cuts proposed would be up
to <5 percentage points in each
income tax rate bracket. That
would mean a one-fourth tax
reduction for the lowest taxpayer]
group, but considerably less, in
proportion, for the higher-income
families.
The President pledged that this
recovery will not be nipped off
prematurely — as he said that of
1959 was — by a tight money
policy.
The outlook for stable living
/costs is favorable, he assured
Congress, if unions and industry
will show statesmanlike restraint
in pay settlements to avoid a
spiral of wage and price advances.
The President said the country
has achieved the immediate aims
he set a year ago — to “recover
not from one but from two re
cessions”—by starting the econ
omy uphill and reducing jobless
ness while keeping price stability.
“Confidence in the dollar has been
restored.”
IS
Kennedy disclosed he would
have asked a tax increase to cover
the steep rise in spending neces
sitated by last spring’s Berlin
crisis if the economy had been in
better shape.
For the first time since the Tru
man Administration, the annual
economic message specified goals
which, in the Presidents opinion,
would accomplish Ihe intent of the
Employment Act of 14H6. That law
committed the government to
policies which would maintain
"maximum employment produc
tion and purchasing power.”
Dept, of Welfare
Seeks $34 Million for
Various Alaska Projects
WASHINGTON (A — The De
partment of Welfare is seeking
some $34 million from Congress
for various Alaska projects in the
year starting next July il, the of
fice of Sen. E. L. Bartlett said to
day.
Some of the projects included
in this sum, said Bartlett’s office,
are:
A 12-bed hospital at Barrow,
$2,097,000; Health station, Gam
bell, $80,000; operation of the
Arctic Health Research Center,
Anchorage, $67-5,000; and $380,
000 for sanitation projects at
Unalakleet, Yakutat, Kotzebue and
six unnamed locations in the Nor
ton Sound and Hooper Bay areas.
HAT COSTS LIFE
JACKSONVILLE, Fla. UF» — A
hat cost Percy Fisher his life
Sunday.
Fisher was riding in a car when
it crossed a (bridge over a creek.
The wind blew his hat into the
creek. Fisher went in to retrieve
the hat and drowned.
Gavels Bang . . .
Senate and House
Open 2nd Session
JUINEAU iff) The rap of
gavels in the State Senate and
House of Representatives opened
the second session of the second
Alaska State Legislature at 10:05
a.m. today.
The upper chamber was called
to order by Senate President
Prank Peratrovich, OD-Klawock).
Speaker Warren Taylor rapped
I tiie House to order at the same
time.
The first formal action by the
House was unanimous confirma
tion by tile 'Republican minority
members of the appointment of
Mrs. Grace E. Johnson of Nome
to succeed her late husband, Rep.
Arthur D. Johnson, in the lower
chamber.
Mrs. Johnson, the mother of
four children, was sworn in and
seated following a standing ova
tion.
ine .Mouse men passea a reso
lution, HOR1, expressing its es
teem for Johnson and extending
its condolences to his family.
“Arthur Johnson was bora and
raised in the State of Alaska.”
Rep. Don Harris, (R-iMcGrath),
told the House. “He was well
aware of the challenges of the
northwest portion of Alaska—and
he met those challenges up until
the last minute.”
The House gave its unanimous
approval to a second resolution,
HGR2, expressing its sorrow over
the passing of Charles Fager
strom of Nome, former state and
territorial legislator. Fagerstrom
died of a heart ailment early this
month.
Both chambers then recessed
for the morning.
Gov. Wm. Egan is scheduled to
deliver his “State of the State"
message to a joint session of the
Legislature at 2 pm. tomorrow.
His budget message will follow
at 2 pm. on Wednesday.
Robert Bennett
Relates Policies,
Plans for Area
Robert Bennett, new Area Di
rector for the Bureau of Indian
Affairs, met with local people Fri
day at a meeting requested by
the Chamber of Commerce to dis
cuss matters relating to policies
and plans for this area.
On the Vocational School, for
which the state has asked the
BIA to furnish boarding facili
ties for native students who wish
to train under this plan, Mr.
Bennett stated that state and fed
i eral educational officials have
scheduled a conference in Wash
ington, D.C., on Feb. 28 to study
the overall picture of the educa
tional programs in effect and
planned by both the BIA and the
State of Alaska. From this meet
ing will come future planning
for educational programs as well
as needed changes in present pro
grams. At that time the board
ing school will be discussed.
On the subject of the re-loca
tion program, Mr. Bennett ex
plained some of tne reasons sup
porting the program, also stating
that the results of the program
cannot be assessed for many
years as it is estimated it takes
a generation er so to show up the
benefits.
Mr. Bennett showed much in
terest in the plans for Area Re
development, stating that his de
partment has funds for which
priority is given on projects oi
economic development as it is
through such projects that earn
ed income can be derived and
' employment furnished to further
such income.
Mr. Bennett, who has worked j
with the BIA since the thirties
on Indian reservations, found
many ways in which the Eskimo
problems compare with similar
problems of the Indians and has
had experience in solving some
of them.
He stated that this trip was a
quick get-acquainted trip and next
time he comes we will probably
stay a couple of weeks and really
get to understand each part of
the state and see what improve
ments can be made.
State Demos Move to
Prohibit Conventions from
Endorsing Candidates
JUNEAU to) — The State Demo
cratic Central Committee moved
yesterday to prohibit party pre
cinct, district and state conven
tions from endorsing primary
election candidates in the future.
In a weekend meeting, the Cen
tral Committee instructed its
Rules Committee to prepare a re
solution to that effect for pre
sentation to the Democratic State
Convention in Nome next April
21-22.
While the Central Committee
made no mention of it, the action
apparently was aimed at a reso
lution passed by tile Southeast
District Democratic Convention
Jan. 13 urging Gov. Wm. Egan to
run for re-election.
Gop Leaders Claim
Public Works’
Money Need Is Due
To Demo Failures
JUNEAU t'R — Legislative lead
ers of the Republican minority
party said today that the Depart
ment of Public Works’ need for
$4 million supplemental appropri
ation is the result of administra
tion failures.
In a joint statement issued fol
lowing a pre-session caucus, Sen
ate Minority Leader John Cog
hill, (R-Nenana), and House Mi
nority Leader Bruce Kendall, (R
Anchorage), said:
“It is apparent from informa
tion released to date that ele
ments in the $4,008,333 request
for a Public Works’ supplemental
appropriation for fiscal 1961-62
are the result of administration
failures to properly apprise and
check its commitments for a va
riety of construction and main
tenance items involved.
“Hie administration is directly
responsible for the -onfusion that
has ensued and the 1061 Legisla
ture cannot foe held responsible
for administration failures that its
own staff is just uncovering and
bringing to light.
“The desire for a strong state
executive, responsible for the cab
inet and departments he heads,
places the responsibility for the
current confusion squarely at the
feet of the governor.”
* -me statement added that the
' 11961 Legislature was not called
11 upon to act upon the items in
• volved, and had no knowledge!
of them.
At his regular (Monday morning
news conference, Gov. Wm. Egan
first declined comment on the 11
statement, then he said: I*
n an goes DacK to nscal i960
when the budget didn’t call for
enough money to carry on the
(program. That is where the trouble
began/’
Liner Carrying Bob Hope
Struck by Lightning
LOS ANGELES iSfi — A crowd
ed twin-engine airliner, carrying
comedian Bob Hope, actress Jane
Wyman and several dozen others,
was struck by lightning Sunday
over northern California, Hope
said today.
The lightning bolt evidently
disabled some of the craft’s in- (
struments, Hope said, and the ■
pilot turned around and landed
at San Francisco instead of con
tinuing to Los Angeles.
“We were about 15 minutes out
of Monterey,” Hope told the As
sociated Press. “I heard a thud
and saw a flash of ligit. I thought
the engine had backfired.
“The lightning hit the nose of
the plane. The pilot told us: *A
strange thing just happened,
ladies and gentlemen. We’ve been
hit by lightning and we’re still
flying.’
“I turned to Jane Wyman and
said: 'Is there an insurance ma
chine on this plane’?”
Hope, who had been at the
Crosby Golf Tournament at Peb
ble Beach, south of San Francis
co, flew home later on another
plane.
Beverly Minims,
Fairbanks, Named
Alaska Junior Miss
Beverly Mimms, high school
senior from Fairbanks is the 1962
Junior Miss candidate for the All
American contest in Mobile, Ala.
The choice was made by judges
selected from all parts of the state.
Frank Couch, manager of the
JN.C. Store at Nome; Kenneth
Lillie of the ANG at Juneau;
Judy Kerns, stewardess for Wien
Airlines; and Irene Baehr, stew
ardess for Alaska Airlines. Bev
| erly’s beautiful voice gave her
an outstanding talent, although all
the entries were charming, intel
ligent and well poised contest
ants.
Runner-up was Betty June
Weber of Anchorage and second
runner-up, Gail Mclver of Nome.
Betty June will receive a ten
piece wardrobe, courtesy of Bob
bie Brooks, Inc., and Gail a five
piece wardrobe, courtesy of the
Jaycees, sponsoring group of
Nome.
A clever skit of “Jaycee Beau
ties” was directed by Jim Blan
ning and acted out by Pete Hahn,
Barrow Morgan and Stan Molitor.
Sunday evening, after a no
host dinner in the Seaview Room,
the contestants, their chaperones,
and friends, were guests of Mr.
, and Mrs. Willis Brown at a
* theater party at the Nomerama
» Theater.
Republicans Want $3.6
Million Tax Increases /
I Scratched from the Books
JUNEAU (A*—Republican mem
bers of both the House and Sen
ate introduced legislation today
to wipe $3.€ million in tax in
creases adopted last year from
the books.
The GOP measures would cut
the individual net income tax to
14 per cent of what a person pays
in federal income taxes; trim the
motor vehicle license fees; drop
motor vehicle gas taxes by one
cent, to a total of seven cents a
gallon; cut excise taxes on whis
key and wine; and repeal the 3
cent additional tax on a pack of
cigarettes approved last year.
All seven Republican members
of the Senate signed each of the
five bills introduced in the upper
chamber.
In the House, all 18 Republi
cans signed the income tax and
motor vehicle license bills, except
that Rep. (Leo Rhode of Homer
did not sign the motor fuel tax
measure.
not sign the motor fuel tax mea
sure.
Reps. Grace Johnson of Nome;
Walter Kubley, Ketchikan, and
R. W. Stratton, Anchorage, did
not join in sponsoring either the
liquor tax bill or the cigarette
tax bill
NEW BILL
JUNEAU (N — A proposed bill
which would prohibit taxpayers
from deducting expenditures for
the advertising or sales promo
tion of intoxicating beverages in
computing income tax liability
was introduced in the Senate to
day by Sen. A1 Owen, Democrat
of Uganik Bay.
9iAtt aiuivuBrw nuuM — 7:00 P.M. TONIGHT
rce Banquet