IS! NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
63rd Year No. 104
NOME, ALASKA, FRIDAY, AUGUST M, 1962
Per Cupv 15C
Senate Committee Wants
4 Steel Companies Cited
For Contempt of Congress
WASHINGTON — The Sen
ate Anti-trust Subcommittee rec
ommended today that four big steel
companies and nine of their top
executives be cited for contempt
of Congress.
The subcommittee’s action, taken
by a 5-2 vote, followed the fail
ure of the steel executives to ap
pear for a hearing earlier today in
response to subpoenas.
At issue in the dispute is weth
er the companies should be com
pelled to furnish detailed figures
on production costs — information
they contend is confidential and
cannot be disclosed without hurt
ing them competitively.
Sen. Estes Kefauver, <D-Tenn.>,
the subcommittee chairman, de
nounced the failure of the com
panies to appear as willful and pre
meditated contempt of Congress.
The four companies are Beth
lehem, Republic, National and
Armco.
Contempt citations would have
to be approved not only by Ke
fauver’s subcommittee, but by the
full Senate Judiciary Committee,
its parent body, and by the Senate
itself.
Then it would be up to the Jus
tice Department to decide wheth
er to submit the citation to a grand
jury.
In event of a grand jury indict
ment, the case would go to trial.
NOT MAKING MONEY
SEATTLE OP — The floating
ship Dominion Monarch is cutting
short its World’s Fair stay because
it isn’t making money.
Seattle financier E. A. Black said
yesterday the British liner leaves
Sept. 10. Black’s charter runs
through Oct. 21, when the Fair
ends.
He said the 682-foot vessel had
lost money, but he didn’t know
how much. He said the demand for
rooms wasn’t up to expectations.
All reservations beyond Sept.
10 will be taken over by Western
Hotels, which has operated the
ship for Black.
Shilton Hoir File's
Suit Against Munz
Northern Airlines
ANCHORAGE—The son of Rich
ard Dalton, who was killed Aug. 16
in the crash of a Munz-Northern
Airlines plane near Nome, has filed
a $200,000 suit against the airlines
and its owner, Richard Galleher.
In the suit which Selvy Dalton
has filed as special administrator
for his father’s estate, the son al
leges that the airplane was “oper
ated in a careless and negligent
manner” and that the “airplane
striking the ground and killing
Richard Dalton could only have
been caused by negligent opera
tion.”
Young Dalton has asked that the
case be tried by jury.
A carpenter, the senior Dalton
was working for the Bureau of
Indian Affairs in the Nome area
when he was killed. Another BIA
employe and the pilot also lost
their lives in the crash.
NOME AIRPORT WILL BE
CLOSED 8 lo 11:30 A.M. SUNDAY
Wien Airlines have announced
that on Sunday the Nome Airport
will be closed from 8 to 11:30 a.m.
for the Sky Shield III exercise.
The morning flight will leave
Fairbanks earlier than usual at
5.30 a.m. to be here before the
field closes and the evening flight
will be on schedule, stated sta
tion manager Pete Walsh.
On Sept. 5 both the evening
flights and the Polar Sea tours
will stop operation for the sea
son and after Sept. 14 the daily
schedule will be reduced to six
flights a week.
TEEN-AGE PICNIC TONIGHT
The teen - agers of town have
arranged a “goodbye picnic” to
night for all teen-agers leaving
to attend school. The place is at
Hastings; the assembling place is
in front of the N.C. Store; the time
is at 8 o’clock. All who attend are
asked to provide two things:
their own lunch and transporta
I tion.
60 Mph Winds Lash Kotzebue Area
FAIRBANKS UP — A strong
Arctic storm with 60 mile an hour
winds struck Kotzebue yesterday,
completely washing out Front St.,
destroying many small boats and
inundating the Kotzebue Airport.
There has been no report of in
jury. However, a state official in
the village, located on a peninsula
jutting into Kotzebue Sound, an
arm of the Arctic Ocean, said
several tents used as summer homes
by Eskimos were blown down,
leaving some families without
shelter.
In addition, one light plane was
said to have been overturned on
the airport runway, several busi
ness houses were flooded, and about
15 houses along Front St. were
undermined. Observers said an
other storm could topple the houses
into the water.
In addition, a floating cannery,
the first to be used in the Arctic,
which began operation this past
summer, was washed high and
dry on the Kotzebue beach. The
water, stirred by a southeast wind,
rare in that part of the state, was
said to be the highest in the mem
ory of local residents.
One said the water was up ten
feet. Most of the water had sub
sided by late last night.
Bob Baker, Mayor of the trad-1
ing community of approximately
1,000 inhabitants, declared: “We
will form a local committee to
assess damage. We are determined
to repair the town on our own,
and are not going to ask for state
disaster aid, except as a last re
sort.”
There has as yet been no esti
mate of the damage. A barge own
ed by the B & R Tug and Barge
Co. was said to have pounded the
dock along the waterfront during
the height of the storm.
Weather Bureau officials told
Kotzebue residents that the storm
was caused by the differential be
tween a high and low pressure
area, one lying on either side of
the coastline.
Partly cloudy with a few snow
flurries is the weather outlook
for the Kotzebue area today.
WEATHER OUTLOOK
Cloudy with showers tonight.
Partly cloudy tomorrow. Low to
night 40, high tomorrow 50. In
the last 24 hours: High of 43, low
of 32. Max. wind 46 mph from
the NW. Sunrise at 4:39 a.m., sun
set at 7:23 p.m. Temps, a year ago
today: High of 59, low of 41. Ex
tremes on this date since 1907:
High of 65 in 1923, low of 26 in
1919.
Dr. William Wood
Is Guest of Chamber
Dr. William Wood, president of
the University of Alaska, and Mrs. !
Wood and the staff of the Nome
School headed by Supt. Victor
Charles were guests of the Cham
ber at a special noon luncheon
yesterday, arrangements for which
were made by Mrs. Jean Durand
and Mrs. Charles Reader.
Over 80 guests were present, in
cluding Sen. Ernest Gruening and
his administrative assistant George
Sundborg.
Sen. Gruening keynoted the
meeting with the statement that
“education and democracy are in
divisable.” His remarks were am
plified bv Dr. Wood, who stated,
that for the first time in the his
tory of the world education is of
prime importance and is given
extraordinary prominance in the
world of today. It is also a grave
responsibility to the educational
leaders who must help make the
contribution for advance under
standing and knowledge.
Dr. Wood called attention to the
adult education classes offered by
the University of Alaska and hoped
that with the cooperation of the
Nome School some would be of
fered here this winter.
Alaska has the highest birth rate
in the 50 states as well as the high
est proportion of pre-school and
primary grade children and this
extraordinary resource is a prob
lem with which the Education De
partment of the state has to worl
out.
Dr. Wood envisioned Nome a:
a leading part of the big new stati
for the 22 new teachers and praisec
the caliber of the teaching stafi
present.
Rep. F. Walter Wants
FAA Administrator
Najeeb Halaby Fired
WASHINGTON UP — Rep. Fran
cis Walter, tD-Pad, called on Pres
ident Kennedy yesterday to dis
miss the Federal Aviation Admin
istrator Najeeb Halaby.
Walter told the House prompt
action is needed because the FAA
“has no intention of clearing up
the dirty mess that has prevailed
in the supplemental airline in
dustry’.”
He described Halaby’s handling
of fitness reports for non-scheduled
lines as “negligent or cynically
expedient or both."
Walter also demanded the dis
missal of George Prill, director
of the agency’s Flight Sandards
Service, for conduct which he said
“approaches malfeasance.”
Walter said Prill was employed
by the Non-Scheduled Assosciation
before joining F.AA and “continues
to be a non-sked apologist.”
Anchorage Jaycees
Will Moderate Debate
JUNEAU UP — Gov. Wm. Egan
said yesterday the Anchorage
Junior Chamber of Commerce had
offered to moderate a debate be
tween Egan and Mike Stepovich,
Republican candidate for governor.
Egan said he accepted the offer.
The governor proposed a series
of debates with Stepovich prior
to the Nov. 6 general election and
said Wednesday that Stepovich
apparently had accepted the chal
lenge.
The Anchorage invitation was
the fourth to be extended. Egan
had already accepted invitations
for sponsorship of debates at Fair
banks, Juneau and Sitka.
FBI Investigates
Desegregati on Proh! em
BURAS. La. ■.? The FBI to- |
day started to investigate the rocky
road to desegregation at the Our i
Lady of Good Harbor Catholic :
School “at the specific request of
the Attorney General of the United I
States.”
H. G. Maynor, special agent-in- i
charge of the New Orleans Office
of the Federal Bureau of Investi- '
gat ion, announced the inquiry.
As FBI agents began their probe,
the pastor of the school unex
pectedly called off classes for the
day, saying he feared violence. The |
action came only 20 minutes before j
the third day classes was to start.
The pastor, the Rev. Christopher
Schneider, apparently h o p e d
trouble might subside during the
long Labor Day weekend.
Willard Wirtz Will
Replace Arthur Goldberg
As Secretary of Labor
WASHINGTON UP) — President
Kennedy Thursday named Under
secretary of Labor Willard Wirtz
to succeed Supreme Court Justice
designate Arthur Goldberg at Sec
retary of Labor.
The President said Wirtz, 50,
has served with distinction as Un
dersecretary since the beginning
of his administration.
He added that he is confident
Wirtz will carry on what he called
the very fine tradition set by Gold
berg in the field of labor-manage
ment relations.
Wirtz has had long experience
. in the labor-management field.
In 1946, he was chairman of the
Wage Stabilization Board.
He also taught law at North
i western University and at the Uni
j versitv of Iowa.
Kennedy said he made the an
nouncement “with great pleasure.”
He described Wirtz as an able
lawyer with long experience in
labor-management relations.
Wirtz has served as an arbitra
tor in many labor-management dis
putes.
Goldberg has relied heavily upon
him for mediation and negotiations
in many disputes.
Wirtz is a one-time law partner
of Adali E. Stevenson, now US.
Ambassador to the United Nations.
The labor post became vacant
Wednesday when Kennedy select
ed Goldberg to succeed the retiring
Felix Frankfurter on the Supreme
Court.
QUAKE ROCKS UTAH
LOGAN, Utah UPi — Some ap
prehensive feelings remained after
Thursday’s earthquake shook this
northern Utah community.
The tremors also rumbled
through sections of Wyoming, Mon
tana, Nevada, Idaho and Colora
do. There were no injuries.
Several small tremors followed
the initial shock. Residents were
warned larger aftershocks are pos
sible.
Scientists estimated the shock at
5.7 on the Richter Scale. The San
Francisco quake in 1906 was 8.25,
ALASKA CRUISE SHIP
VANCOUVER, B.C. OP) — Alaska
Cruise Lines Ltd., announced to
day it will have a $4 million pas
senger cruise ship built for the
Alaska trade.
Charles West, president of Alas
ka Cruise, said Victoria Machinery
Depot of Victoria, B.C. will build
the vessel in time for the 1964
season.
West said the ship will be 295
feet in length with a beam of 60
feet and accommodations for 238
passengers.
Plane Crash
.Sea?' Sel<lo\ ia
Takes Five laves
ANCHORAGE d* — Only one of
the four per.-oris injured yesterday
in a plane crash near Seldovia
still was unconscious today. Five
others were killed.
Robert Olson, 18, of Seattle, re
mained unconscious and in a criti
cal condition at Providence Hos
pital here, where the injured were
flown from the crash scene.
Young Olson, a former basket
ball star at Ballard High School,
was a cannery worker this summer,
as were most of the others. His
father, Harold Olson, arrived last
night to be at his son’s bedside.
The boy suffered a head injury
and possible internal injuries.
Tore Hoven, 18. Seattle, was re
moved from the critical list. Hos
pital attendants said he had re
gained consciousness but was not
yet oriented. He has a fractured
right leg, multiple bruises and
lacerations.
The condition of the pilot, Bill
de Creeft of Homer, Alaska, was
listed as fair. The former Mont
clair. Calif., man has a dislocated
left hip, bruises and lacerations.
Florentine Mug. Honolulu, was
in satisfactory condition with
bruises and lacerations. He was a
cannery foreman who had been
coming to Alaska each summer for
15 seasons.
The twin-engined plane was en
route from Seldovia to Homer to
' connect with a flight to Seattle.
The cause of the crash was not
determined.
| BAIL SET AT $52,500 FOR
| ATTEMPTED MURDER ASSAULT
SAN JOSE, Calif, id* — Charges
of attempted murder, mayhem and
assault with acid were filed today
against Hungarian refugee Dr.
Geza de Klapanv in jail here for
maiming his bride of five weeks.
Bail was set at $52,500.
The acid-burned Hnnja de Kla
pany, former beauty, was report
ed out of danger today.
•‘Her face will not look as it
used to, but there is good chance
she will be quite presentable," her
physician said.
16 Coal Cars Derailed
On Alaska Railroad
FAIRBANKS — Sixteen coal
ears of an extra 1830 northbound
train were derailed 27 miles south
of here Wednesday night, apparent
ly due to a washed out culvert, ac
cording to Alaska Railroad offi
cials.
Two of the coal cars plunged
into a creek. The others are scat
tered along the track at Mile 443.
The engine and six cars passed
through the washout safely but
the 16 cars of coal were then de
railed and ditched, according to
Larry Buckley, Fairbanks traffic
manager.
No one was injured.
Crews are working in the muck
in an effort to lift the big cars
back on the track.
Buckley said the two submerged
coal cars are acting as a dam
which presents an additional prob
lem.
He estimated that approximately
700 tons of coal spilled during the
derailment.
The train has been northbound
from Healy to Fairbanks.
It’s hard to realize these days
that this country was founded
partly to avoid taxation.