THE NOME NUGGET
Published Monday, Wednesday and Friday by the
NOME PUBLISHING CO.
NOME, ALASKA
Telephone 443 - 2381 $1.50 PER MONTH
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E. P. BOUCHER . Managing Editor
CLINTON GRAY . Production Manager
Entered as second class matter October 14. 1943, at the
post office at Nome. Alaska, under Act of March S, 1879.
(Following is a statement by James A. Williams before the
subcommittee on Minerals, Materials and Fuels of the Senate
Interior and Insular Affairs Committee on Senate Joint Reso
lution 44, Washington, D.C., March 15, 1962)
TM^Y NAME IS James A. Williams. I am the Director of the
Division of Mines and Minerals, Department of Natural Re
sources, State of Alaska. I am a registered professional mining
engineer, and also presently chairman of the Western Governors
Mining Advisor}' Council, an advisory body on mining matters to
governors of the 13 western states. I have been directly connected
with mining in Alaska since 1939 except for a period of military
service. I speak for the administration of the State of Alaska and
the Alaskan mining industry.
We urge passage of Senate Joint Resolution 44. A $35 per
ounce subsidy to the gold miner will increase production, provide
a stimulus to exploration and discovery of new ore deposits, and
create an economic boost for the mining states, particularly Alaska.
The subsidy will increase Alaskan gold production after 1963 by
an estimated 150,000 ounces per year.
A peak production year for both the U.S. (4,870,000 ounces)
and Alaska (748,000 ounces) was 1940, with Alaska producing
15.3 per cent of the nation’s total. Estimated production for 1961
was 1,526,000 and 114,000 ounces respectively, showing Alaska
to be presently producing only 7.5 per*cent of the nation’s total
gold. This would seem to indicate that Alaskan gold mining has
been reduced more than that of the other states, but one should
remember that 37 per cent (in I960) of the nation’s gold comes
as a byproduct of base metal mining. Alaska’s production is pre
sently all from placer operations. Alaska produces more gold
from mines that are primarily for gold than any other state except
South Dakota, where production is practically all from one under
ground producer. With its small amount of basic industry, Alaska
has the most to gain — will receive the largest boost — percentage
wise, m its economy, trom a gold suDsiay.
A $35 subsidy will probably result in a doubling of the present
annual production. This will mean a production of more than
200,000 ounces per year in Alaska. The greatest effects will be in
the numerous small placer operations that will start almost im
mediately, and in the surge in prospecting and exploration that
should result in new discoveries. The importance of new dis
coveries should not be overlooked. New base metal ore bodies will
be discovered as well as gold. As noted above, base metal opera
tions produce substantial amounts of gold. Further developments
will also be seen in offshore mining. A sudden interest in offshore
gold mining in Alaska has resulted in the filing for many offshore
prospecting permits. The subsidy will help these expensive ventures.
Although the Fairbanks district dredges will probably not be
continued by the USSR & M Co. under even a $35 subsidy, it is
assumed that these and others will be available for new ventures
which may be started. This will reduce the capital outlay necessary
for at least some of the probable new operations. This will reduce
die capital outlay necessary for at least some of the probable new
operations. However, a labor value ratio study of 1958 census data
indicates that the capital expenditures in Alaskan gold mining
are higher per man hour, and the value of shipments lower, than
in gold mining in the other states. This will, of course, remain
true after the incentive bonus is added, and so will not attract in
dustry as much as might be expected. Even doubling the value per
labor unit will not place the industry substantially above other
Alaskan mining industries and will leave it substantially below
other mining in the U.S.
We estimate the increase in employment will be from the
1961 level of 790 workers (including prospectors) to more than
1,500 workers. Thus the impact within the industry will be a
doubling of present production, with a quadrupling of its dollar
value, plus a doubling of the working force.
To summarize: with the indicators that the effect of S. J.
Res. 44 will double Alaskan gold production, it is reasonable to
assume the nation’s production will also be doubled. This will
accomplish the desired results of strengthening the gold mining
industry and improving the position of the United States gold
deserve.
You’ve never seen laundry
SO CLEAN
yet finished so quickly!
All read? for yon to iron and
put away — including blanket*
and slipcovers!
NOME U-WASH
DIAL 2671
— MACHINES DO YOUR JOB!
Special Senate Committee Submits
Seven Pages of Recommndations
On New State Highway Department !
JUNEAU UP* — A seven-page re
port on its month-long series of
public hearings was submitted to
the Senate Saturday by the cham
ber’s special Highways Investigat
ing Committee.
Among other things, the com
mittee recommended the creation
of a State Department of Highways
and a complete examination of the
fiscal proceedings of the Highway
Division and related divisions.
Gov. Wm. Egan, by executive
order, made the Highways Division '
a full-fledged department Thurs
day and at the same time the ad
ministration requested $160,000 for
a study of the highways fiscal sys
tem.
The committee said it noted a
lack of communication and co
operation between the Division of
Highways, the Department of Pub
lic Works and the Department of
Administration, particularly on per
sonnel matters.
The report was signed by all
seven members of the Investigating
Committee, Chairman H. J. Mc
Nealy, John Coghill, Howard Brad
shaw, Lester Bronson, W. O.
Smith, Brad Phillips, and Vance
Phillips.
The committee said its hearings
“disclosed that the malfunction of
budgetary, fiscal and accounting
procedures spread throughout the
entire area” of the highway pro
gram.
Recommand Sound Budget
The committee recommended that
fiscal responsibility and sound bud
getary policies be established for
the highway program and that the
Department of Administration keep
the Highway Division currently in
formed on all highway balances.
The committee recommended
that “realistic qualification stand
ards” be adopted for highways per
sonnel and that pay classifications
be increased. It also urged that
the requirement of a high school j
education be eliminated for jobs '
in the lower engineer aide class. !
Noting that the right of way
section of the Highways Division
“is the cornerstone of our whole
highway program,” the committee
recommended that a training school
for appraisers and negotiators be
set up within the section.
Trainees would receive full pay
while receiving instruction.
The committee also recommend
ed that consideration be given to
i assigning full-time lawyers to the
section and employing lawyers in
the field of eminent domain on a
negotiated hourly basis in the
state’s principal cities.
Should Be Followed Closely
The committee said the provi
sions of House Joint Resolution 27
of the 1960 session should be fol
lowed closely. The resolution pro
vides legislative direction to the
Department of Public Works as to
the state road program.
The committee said the policy
of the reconstruction of sub-stand
ard highways should be equally
divided as to priority with that of
new construction on the secondary
road system.
Upon completion of the revision
of the five-year highway construc
tion program, the committee said,
projects removed or added should
be brought to the attention of the
people in the areas affected.
Attention to Maintenance
The committee urged full atten
tion to the state’s maintenance
program, including an adequate
maintenance equipment replacement
program, “to bring costs per mile
down and maintenance efficiency
up.”
The committee also said con
sideration should be given to the
maintenance of non-system and
school bus type roads on a local
CUBA SENDS U.S.
A PROTEST NOTE
HAVANA — Cuba has sent
the United States a protest note
accusing U S. military personnel of
stupidly hostile acts at the Guan
tanamo Naval Base,
The protest said deliberate pro
vocation proved that the base at
the southeastern end of the island
was being used as a launching site
for a “large-scale armed attack the
imperialist government of the
United States is organizing against
Cuba.”
The note, signed by Foreign
Minister Raul Soa, cited 12 al
leged incidents including charges
that Cuban guards outside the base
were fired upon.
Open New National Park
CHRISTIANSTED, St. Croix,
Virgin Islands iffi — Secretary of
Interior Stuart Udall and Gov.
Ralph Paiewonsky of the Virgin
Islands donned skin diving gear
Sunday to cut a submerged rib
bon opening an addition to Amer
ica’s newest national park.
The underwater trail, a 250-foot
circular route with 13 submerged
markers, is located off Buck Island,
about six miles from Christiansted.
contractual basis until a govern
ment unit is formed to take over
this function.
Vacancies within the Highways
Division should be filled by the pro
motion of persons employed by the
Division, the committee said, and
it urged great consideration to the
use of private engineering firms
for program roads and use federal
aid highways funds to the maxi
mum.
The committee said it found a
“serious lack of public relations
within the Department of Public
Works and the Division of High
ways. Careless, false or no dissemi
nation of highway information has
been given out to the public. The
denial of this information to Alas
kans has caused much misunder
standing and concern.”
The committee recommended a
strong program of public informa
tion on the state’s highway pro
gram.
Fault ol State
It also said it found, during the
hearings, that “cooperation between
the State of Alaska and Bureau of
Public Roads leaves something to
be desired and has been largely the
fault of the state. . .”
The report recommended that
differences be ironed out as quick
ly as possible.
The report did not mention
Thurman D. Sherard, who was
fired by Egan on the fourth day
of the current legislative session,
two days after the Senate voted
for the road probe.
Sherard was one of the key wit
nesses during the long hearing.
The concluding paragraph of the
committee report said:
“We, your Committee on High
ways, recognize the fact that poli
tics, personalities and tempers enter
any human element of public life,
and for this reason we have re
solved ourselves for the good of the
State and its highway program to
this unanimous report, which we
feel will shed much light on the
problems we have encountered.”
The
government
will give
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