64rd Year No. 114
NOME, ALASKA, WEDNESDAY, Sf Pi M: 26, 196’
Per (. ipv 1 5C
Is There or Isn't There a Fund Balance?
Two GOPs Charge
State Has No Cash
Surplus In Treasury
ANCHORAGE UF> — Two Re
publican legislators today called
upon Gov. Wm. Egan to “correct
a widespread impression he has
given the people of Alaska that
this state has a cash surplus in its
treasury of more than $24 million.”
State Sen. John Coghill, of Ne
nana, and Rep. Bruce Kendall, of
Anchorage, the GOP minority lead
ers in the Senate and the House,
respectively, said in a .joint state
ment:
"This impression has gained ac
ceptance to a point where .readers
of one newspaper in Alaska have
been sending in suggestions as to
how this money should be spent.
"No cash surplus exists. We are
certain that Mr. Egan is aware
that no cash surplus exists, yet
he allows the impression to stand.
"The fact of the matter is that
the unobligated balance which
existed on June 30th, and to which
the governor referred in his re
port, actually existed for one day
only, on July 1st, this balance be
came a part of the money needed
to meet demands of Gov. Egan’s
huge $70 million budget for the
fiscal year 1962-63.
"This unobligated balance of
June 30th, of which the governor
was boasting, was estimated in his
budget message of last January,
and was appropriated by the leg
islature during its last session. The
appropriations became effective
July 1st.
“Alaska has no actual cash sur
plus in its treasury. The state has
been using up all of its income
from every possible source to
meet its annual budgets. Further
more, we have been forced to de
pend on unpredictable oil lease
income to make ends meet.
“We believe that Gov. Egan
owes the people of Alaska a clear
and undistorted report on our
state’s financial condition.”
Egan’s office announced on
Sept. 15 that it had received a fi
nancial report from Commissioner
Floyd Guertin of the Department
of Administration showing an un
obligated general fund balance on
last June 30 of $24,371,457.78.
Commissioner Guertin:
Financial Report Issued
Is True, Correct and Clear
JUNEAU — Floyd Guertin,
State Commissioner of Adminis
tration, said today a state financial
report issued by his office on Sept.
15 was a “true, correct and clear
statement.”
Guertin said:
“Any distortion of the facts is
in the interpretation which they
(Sen. Coghill and Rep. Kendall)
are attempting to make.
“The balance on June 30, 1962,
is projected to carry through to
June 30, 1963, giving consideration
to the normal revenues which will
accrue to the state during the cur
rent fiscal year.
“An indication of the fallacy
in their statement is the fact that
the state on Sept. 20 had on de
posit in Alaska banks a cash bal
ance of $38,154,500.”
Canada Ships lo Cuba
OTTAWA (J1)—Eight Canadian
owned ships have been carrying
cargo between the Soviet Union
and Cuba in the past 12 months,
a reliable informant says.
' Gov. Egan Says There
Is a General Fund Balance
ANCHORAGE W — Gov. Win.
Egan, reacting to Republican
! charges there is no unobligated
| $24.4 million balance in the
j state’s general fund, said here to
day that “the fact is” there was
i such a balance on June 30. 1062.
“We know that on June 30,
1963 there will be an unobligated
, balance in some similar amount,”
Egan said.
i The governor arrived here with
Interior Secretary Stewart Udall
yesterday afternoon and is travel
ing with him today to the Kenai
Peninsula.
The general fund balance is the
result of “the good financial man
agement that this administration
has exerted through all of our
difficult pi- 'blems,” Egan said.
He said he is “confident” there
will be some balance on June 30,
1964 but said it would be “pre
sumptions” of him to anticipate
the work of the legislature.
Even with a federal tax cut
there is “good reason to believe
there will be a favorable balance
in June 1964.”
With continued growth and
more revenue coming to the state
in the future “we will soon close
the gap with recurring funds tak
ing over the slack that came with
i the expiration of transitional
grants,” the governor said.
Egan emphasized the cash bal
ance should not be defined as a
surplus. “It insures that our pro
gram needs will be met.” Budgets
are based on anticipated revenues
and until a particular fiscal year
comes to an end actual revenues
cannot be determined, he said.
The Nome Fire Department
answered a fire call Monday eve
ning to the large Moonshine water
truck which was on Third Ave.
and had a short in the wiring.
There was no damage reported.
TOP GOP CANDIDATES
TO ATTEND RALLY
HERE SATURDAY
Local Republicans are complet
ing details of a GOP rally Satur
day evening at the Multipurpose
room of the School.
Expected here for the rally are
Mike Stepovich, candidate for gov
ernor; Ted Stevens, candidate for
the U. S. Senate; Lowell Thomas
Jr., candidate for the U.S. House
of Representatives; and also can
didates for state offices: Tom Mar
tin and Wallace Mclver, for the
Senate, and Grace Johnson for the
House.
A potluck supper is to be en
joyed and also the showing of
Lowell Thomas Jr.’s new film,
“Alaska, the Brightest Star.” This
is believed to be the first public
viewing of the film here, which
was secured from the M & M
Bank.
The pri^e of admission to both
the supper and the film is $2.
Tickets may be obtained at the
door and they are on sale down
town by Chief Laws and Chuck
I Frazier and may also be obtained
from Mrs. A1 Doyle, Mrs. Arthur
Johnson, and Mrs. Harry Johnsen.
Gubernatorial candidate Stepo
vich is making the trip to Nome
especially for the rally while Ted
Stevens and Lowell Thomas Jr.,
are on a campaign trip to this
area and will be met at Unalakleet
by Grace Johnson. Thomas is
flying his own plane.
Negro Meredith
Bloeked 4th Time
At Ole Miss Gates
OXFORD, Miss. UP> — Missis- ;
sippi blocked Negro James Mere- !
dith at the gates of the University \
of Mississippi today, foiling for the
third time in less than a week
his plans to enroll at the all-white j
school.
Id. Gov. Paul Johnson, backed
by highway patrolmen, barred the*
29-year-old Negro’s path this time,
four times refusing Mi redith and
five cars of U.S. marshals at the 1
main entrance.
“We want to take him in,” said
John Dour, U.S. Justice Depart
ment attorney, the fourth time.
"I heard you,” snapped John
son.
Then a brief scuffle flared when
j marshals tried to walk through
! the line of patrolmen. Lt. Gov.
1 Johnson told Chief Marshal John
! McShane:
I “You are senseless in trying to
; show off in front of television
] cameras for the rest of the nation
to see.”
McShane replied: “I’m not show
; ing off but doing my job as order -
! cd.”
The brief physical contact be
tween state and federal officers
ended abruptly. Meredith and his
convoy of marshals headed back
to Oxford Airport and took off fh
a government plane for an unan
nounced destination.
At this moment, Gov. Ross Bar
nett — who twice before turned
down Meredith’s application for
admission to Ole Miss in defiance
of federal court orders — was 15
minutes away, speeding north by
car. Bad weather kept him from
flying to Oxford.
“Well,” Meredith shrugged to a
newsman at the airport, “at least
I’m getting a lot of flying time.”
He obviously was referring to
yesterday’s flight from New Or
leans. The adamant governor met
him at the door of the state college
board office and rejected him.
Four hours after Barnett openly
defied federal court orders and
turned Meredith down, the 5th
U.S. Circuit Court of Appeals at
New Orleans directed the 64-year
old governor to appear in New
Orleans Friday to face contempt
charges.
FREE CHEST X-RAYS
AT CITY HALL
The Alaska Dept, of Health’s
annual free chest X-ray program
is under way here with the arrival
of Rex Morrow and Jim Sullivan,
X-ray technicians.
The X-rays will be taken this
year at the City Hall, and the
schedule is as follows:
Thursday—1 to 5 p.m.
Friday—10 a.m. to 12 noon; 1 to
5 p.m., and 7 p.m. to 9 p.m.
Saturday—10 am. to 12 noon, and
1 to 3 p.m.
Mrs. Margaret Swanberg, the
Public Health Nurse, emphasized
that the X-rays are free and that
EVERYONE is asked to partici
pate in the program.
Flavored Stamps . . .
PARIS 0P> — Licking stamps may
become a pleasure in France.
Postal Minister Jasques Marette
said the new 100-franc — 20 cent
— Le Touquet stamp has a mint
flavor in the mucilage. Experi
ments are going ahead with
licorce, lemon and vanilla flavor
ings.
Cuba:
I .S. \\ ill K«<*j>
(Jose \\ atrh < hi
Port Construction
WASHINGTON (.T* — The State
Department declared today Soviet
construction of a fishing port in
Cuba will be watched closely by
the United States to see whether
it poses a threat to this nation's
safety.
The State Department implied
—but carefully avoided a specific
charge—that the project announced
at Havana yesterday may turn
out to be in fact construction of
a naval base. Increased Commu
nist power in Cuba would increase
the threat to U.S. security.
Some defense sources said the
port could be camouflage for a
naval base which could threaten
the Panama Canal. They said a
port equipped to overhaul, repair
and supply Russian and Cuban
trawlers could also serve as a
support base for submarines and
torpedo boats.
State Department officials told
newsmen the Soviet fishing fleet
operating in the western North
Atlantic numbers about 600 trawl
ers. They said concentration of
Soviet fishing boats in the Carib
bean area could injure the com
petitive position of countries which
'Continued on Page 3'
THE WEATHER
Continued cloudy with light rail
and fog. Southeast winds 15-2:
mph. Low tonight 35. high tomor
row 40. In the last 24 hours: High
of 41, low of 36. Max. wind 16
mph from the east. Sunrise at
4:27 a.m., sunset at 7:37 p.m. Temp,
a year ago today: High of 47. low
of 42. Extremes on this date since
1907: High of 66 in 1940, low of
29 in 1913.
<j|v SKrthico
Land and Property
M valuations
Board of Equalization meetings
were hold Monday evening follow
ing the Council meeting, and also
on Tuesday evening.
On Monday certain corrections
were presented by Merrill Chitty,
the assessor, to various properties
where errors had been made, and
the corrections were approved. On
the remainder of the petitions, no
recommendations were made by
the assessor.
The council, in view of the tax
payers' opinion presented, cut the
•plus factor' of 40 percent over
the base rate, to a plus factor of
12 per cent, thereby reducing the
valuation on structures and im
provements by 20 per cent from
the valuation set last month.
On Tuesday the board took up
the matter of land evaluation,
changing different areas through
out the city:
The south side of Front Street
from B to Steadman was reduced
from $400 a front foot to $240 per
front foot; Block A to $100: Block
A to the ANG to $70. and the
south, side of Block A to the ANG
to $50 per front foot;
Front and Metier Way to the
seawall, and from Campbell to the
ANG, the rate was changed to 28
cents a square foot; seawall to the
city limits, on the south side, 10
cents per sq. ft; Campbell to Pearl
' Street, 15 cents, and Pearl to city
i j limits 10 cents.
' I Belmont Point was reciuced to
i 10 cents per sq. ft.. Block 21 was
j reduced from 50 cents to 35 cents,
i and Block 22 to 28 cents.
All these changes were ap
I proved by the couticil and another
i meeting was scheduled for Satur
day noon, at 12:30, for the new
. total at which time the tax rate
i can be set.
Liston Is New Champion; Dethrones
Patterson In 2:06 of First Round
CHICAGO UP — New heavy
weight champion Charles <Sonny* j
Liston said today he would give ,
Floyd Patterson his entitled re
match and after that, “I’ll fight
them as they list them.”
At a noon press conference, Lis
ton calmly picked off questions
of several hundred writers as easily
as he did Patterson’s few punches
in his 2:06 knockout of the champ j
in Comiskev Park last night.
Somebody asked Liston how he
rated Ingemar Johansson, who'
knocked out. Patterson in their first
fight and briefly reigned as world
champ.
‘■If he is No. 1, I'll be glad to;
take him on, he's a good fighter," j
said Liston. “Or if Eddie Machen j
is No. 1, he’s next on tire list.”
Jack Nilon, Liston's purported j
manager, said the new champion |
would have to fight Patterson |
again, “because there is a million j
dollar penalty clause in the con
tract. We haven’t got that kind of ;
money and we want to fight him ;
again anyway.”
Liston drew a big laugh from
the press corps when, speaking I
of his hopes of being a “good :
champion.” he said “I hope you |
fellows give me a chance to com- !
plete my re . . ., my . . .’’
He turned to Nilon and said, I
“mv re . . ., you finish it.” He
meant “rehabilitation.”
Just before the news conference
started, a mild commotion devel
oped when Norman Mailer, who
authored "The Naked and the
Dead,” and exported at the fight
for a magazine 'Esquire', insisted
on sitting at the head table.
Mailer said he wanted to pre
(Continued on Page 3'
Gene Tunney Tabs
Fight as “Terrible Hoax”
SEATTLE UP — Gene Tunney
today labeled the Sonny Liston
Floyd Patterson fight “a terrible
hoax.”
The former world champion,
visiting Seattle on business, view
ed the title fight last night on
closed-circuit television.
“The people who paid were
burglarized.” Tunney asserted.
"When you put on a fight and
expect people to pay for it you
must have some sort of guarantee
they will see a show.
"It is shows like this that are
rapidly killing boxing.”
Tunney said he believed Patter
son went into the ring a frighten
ed man.
“He was so frightened he didn’t
even box,” said the man who re
tired an undefeated champion in
the late 1920s.
“Can anyone imagine the cham
pion holding on in his first
clinch?”
“And if they ever meet again
the same thing will happen.”