THE
NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
63rd Year No. 10
NOME, ALASKA, WEDNESDAY, JANUARY 24, 1962
Per Copy 15^
Gov. Egan’s 1963
Budget Calls for
Over $70 Million
JUNEAU UP> — Gov. Wm. Egan
today presented the Legislature
with a proposed fiscal 1963 budget
calling for expenditures of state
funds in the amount of $70,408,815.
He also told the Legislature he
would submit supplemental ap
propriations amounting to
$7,940,233.
The fiscal 1963 budget proposed
by Egan is $14,674,775 above the
1961 Legislature’s appropriation
for fiscal 1962.
It is $6,834,542 above the fiscal
1962 appropriation plus the sup
plemental requests Egan said he
will submit to this Legislature.
Of the total amount of state
funds which Egan’s budget pro
poses be spent during fiscal 1963,
$57,780,570 would come from the
state’s basic general fund.
An additional $4,187,6$$ would
come from fuel tax account and
$2,407,000 would come from fed
eral transitional grants.
Egan said the state general fund
will have an estimated unobli
gated cash balance of $16,049,392
on next June 30.
estimated general fund reve
nues for fiscal 1963 were listed at
$52,226,522.
The estimated unobligated cash
balance on June 30, 1963, with
adoption of his budget as it is now
written, Egan said, will be
$2,736,334.
in his budget message to the
Legislature, delivered before a
joint meeting of the House and
Senate, Egan said:
“This is the year when most of
our transitional monies will be
exhausted. This is the year when
we assume full financial respon
sibility for our road program.
This is the year when we begin
paying general operating ex
penses for the new Alaska psy
chiatric institute near Anchorage
and the new marine highway
institute.”
Egan said the proposed budget
was in balance, “it calls for no
new increases in taxes. . .
“1 want to say, too, that this
budget has no fat. It is no pork
barrel. It represents in my opin
ion, the minimum program neces
sary to conduct a responsive gov
ernment. im '■. plK£& w
Egan dismissed suggestions tnat
a portion of the $15 millicm in
bonus money received at the Dec.
1$ oil and gas lease sale be used
to wipe away an $8,705,000 debt
to the federal Reed (unemploy
ment security) Fund.
“iLater in the session,” Egan
said, “I will submit a five-year
capital improvement program to
you recommending general obli
gation bond authorizations for
state-operated schools, additional
facilities at the University oi
Alaska, airport facilities, and other
much-needed public improve
ments.”
The Governor said that withoul
the $3.6 million in new taxei
>t«d last year, "I would todaj
prelecting fer you a revenue
year in
million, fortunate
not be necessary anc
conclude the fiscal
financial condition**
T. Sherard Welcomes
Investigation of Hwy. Div.
JUNEAU UP) — Thurman D.
Sherard, State Director of High
ways, said today he would wel
come an investigation of the Di
vision of Highways, such as that
authorized by the State Senate
yesterday on the motion of Sen.
R. J. McNealy.
“In asking for an investigation
of the Division of Highways, Sen.
McNealy has performed a great
service to the State of Alaska,”
Sherard said.
“The results of such an investi
gation, if it is a complete and
thorough one, which I sincerely
hope it will be, can do much
toward improving highway opera
tions and obtaining roads so
vitally needed.
“The investigating committee
may be assured of my whole
hearted suport and cooperation.”
"SKID CONTROL" . . .
CEDAR RAPIDS, Iowa —
Cedar Rapids policemen are try
ing to learn how to drive squad
cars on slippery streets by prac
ticing on an ice skating rink. Of
ficers spent two hours yesterday
in a “skid control” session on the
250-foot long Knollridge Park
rink where “intersections” are
marked out. Police Chief George
Matias said the training will con
tinue for two weeks and a public
demonstration may be scheduled.
! Secty. Hodges Says Tax
Cut Entirely Conceivable
WASHINGTON UP> — Secretary
of Commerce Luther Hodges says
a tax cut is “entirely conceivable”
if the United States can increase
its production by 4 per cent in
the next year.
Hodges was asked at a news
conference yesterday whether a
cut in the 52 per cent corporate
income tax would help the United
States maintain industrial leader
ship over the Soviet Union.
He said if annual U.S. produc
tion rises by 4 per cent, instead
of the 2Vfe per cent average an
nual increase of recent years, “we
could cut taxes not only corpo
rate but personal.”
Resolution Calls for a Fur Seal
Processing Plant at Nome
JUNEAU UFI — A joint resolu
tion, HJR2, urging the Depart
ment of the Interior to study the
feasibility of establishing a fur
processing plant at Name was in
troduced in the House today by
Rep. Robert Blodgett.
MILK SERVED AT WHITE
HOUSE PRESS BRIEFING
WASHINGTON UP* — Everybody
had milk at the White House
press briefing today.
There were wisecracks, but the
reporters drank it.
! Even Pierre Salinger, President
• ial press secretary who set up
• the proceedings, downed a glass.
But first he hid a cup of coffee
k from photographers,
s It was all an aftermath of
r President Kennedy’s announce
s ment that milk is going to be
- served at every White House
i meal, as part of an effort to,an*
t courage greater eonsumfitioai
f throughout tteroung^^^
U.S. House
Passes Bill to
Raise Postal Rates
WASHINGTON (ff> — The House
passed today a bill to add one
cent to the cost of mailing a let
ter and raising postage rates for
magazines, newspapers and adver
tising material.
The bill, one of the administra
tion’s high priority measures, was
passed by voice vote. It now goes
to the Senate.
The House added $79.2 million
to a rate increase bill worked
out by the Kennedy Administra
tion and House Democratic lead
ers, producing a measure that
would bring in $700 million if
accepted by the Senate. There is
some doubt on that score, how
ever.
The bill raises first class and
air mail rates by a penny, to 5 and
8 cents,. for a total increase in
those categories of $455 million.
And magazines, $171 million more
in third-class rates — those used
mostly iby direct mail advertisers
— and about $20 million more in
miscellaneous increases.
All increases would be effective
next July' 1.
Soviet Defense Minister
Claims Red Rockets Could
Blast U.S. Political Centers
MOSCOW (£) — Defense Minis
ter Marshal Rodion Malinovsky
asserted today Soviet rockets
could blast all U.S. “industrial and
administrative - political centers"
into the heavens in a single blow.
He also called for better U.S.
Soviet relations.
Malinovsky coupled hard words
with soft in an interview with
the Communist party paper Prav
da in which he sharply assailed
U.S. Defense Secretary Robert S.
McNamara and New York Gov.
Nelson Rockefeller.
Malinovsky said McNamara’s
declaration before the Senate
Armed Services Committee that
the United States is capable of
destroying selected Soviet targets
was boastful and was “directed
not at the improvement of rela
tions (between the Soviet Union
and the United States, but at in
citing passions of war hysteria,
and in the final analysis stepping
up the arms race. And the arms
race has always been the road
that led mankind to war”
Malinovsky charged that Sec
retary McNamara and other U.S.
administration officials are whip
ping up war hysteria because they
hope that corporations for which
they once waked will make great
profits.
He said Rockefeller has been
“exploiting unscrupulously the
peoples’ fears" with a campaign
for the construction of nuclear
shelters.
‘“Tremendous sums are spent on
Inis which are transferred from
the pockets of taxpayers into the
safes of monopolies engaged in
this profitable business," Malin
ovsky said. "But every sober
minded person realizes that shel
ters against Atom and Hydrogen
Bombs are nothing but a coffin,
a grave prepared in advance."
Rep. Mark Jensen Takes
Swipe at Rep. Kendall for
Proposed Capitol Move
JUNEAU — A Southeast
Alaska lawmaker took one of his
Anchorage colleagues to task on
the floor of the House today for
his stand on the capitol reloca
tion issue.
Rising on a point of personal
privilege, Rep. Mark Jensen, (D
Douglas), berated Republican Mi
nority Leader Bruce Kendall, (R
Anchorage), for statements here
in which he backed the proposed
movement of the state capitol
from Juneau to westward Alaska, i
“I know it’s not good practice !
to get excited this early in the
session,” Jensen, who is also
Mayor of neighboring Douglas,
told the House.
“But I can’t help it when 1 feel
that not only this area but all of
Alaska is being hurt. We’re not
playing for marbles. Contracts are
being held up. Construction is
being held up.”
Pointing an accusing finger at
the Anchorage lawmaker, Jen
sen said:
“When Kendall arrived in Ju
neau he stuck his finger in my
face and said, ‘if we don’t get you
this year, we’ll get you next year. I
And if we don’t get you next year,
we’ll get you at the Constitution
al Convention.’
“Then he has the nerve to get
. on the radio and tell the people
of Juneau that he is against sec
’ tionalism. I say it’s not section
f alism—it’s cannibalism.”
s Kendall sat quietly in his chaix
| while Jensen spoke. He made no
reply.
Asked for comment later, he
| said, “later.”
Here’s a Breakdown
On the Gov. Egan’s Budget
JTJNEAU Ufi — Here is a capsule
breakdown of Gov. Wm. Egan’s
proposed budget by governmental
function for fiscal 1963 as com
pared with fiscal 1962 appropri
ations, including supplemental re
quests, with 1962 figures in
parenthesis:
General government: $3,202,149
($3,178,486).
Courts and legal process: $2,
237,593 ($2,172,970).
Legislative: $710,799 ($741,159).
Education $23,657,142 ($18,295,
458).
'Health and welfare: $9,936,222
($7,260,806).
(Protection of life and property
and corrections: $4,100,749 ($3,
263,980).
Natural resources, development
and conservation: $7,105,781 ($6,
013,251).
Regulatory services: $892,049
($690,961).
Transportation facilities: $24,
744,065 ($15,029,588).
Debt service: $1,626,619 ($1,
146,384).
Total: $78,214,048 ($57,793,043).
WASHINGTON UP) — President
> Kennedy plans to spend the week
end with his convalescing father
in Palm Beach, Fla.
The White House, in announcing
■ the President’s plans, said Mrs.
i Kennedy and their two children,
, Caroline and John Jr., will ac
company him.
Gov. Egan Asks
$16 Million For
Aid to Education
JUNEAU (A — Gov. Wm. Egan
today asked the Legislature for
$16,635,539 for educating Alaska’s
fast growing school population in
fiscal 1962-63.
The figure was over $2 million
above that appropriated for the
current school year.
It included no increase in
teachers’ salaries.
The Governor said that the in
crease was linked directly with
increases in the school enroll
ment.
The only expanded programs
were in the fields of education for
exceptional children and vocation
al training.
A total of $11,272,590 was allo
cated for support of schools with
in incorporated districts, up about
$1.6 million from last year’s ap
propriation.
State schools outside of incor
porated districts were budgeted for
$2,406451
The Governor asked for a vo
I cational education appropriation
of $250,000 to step up training of
electronics technicians and prac
tical nurses for the state’s new
mental health facilities.
That would be about. double
last year’s appropriation.
He also budgeted $.106,730 tor
- special education to broaden tike
■ program for education of handi
capped children.
► SPECIAL COMMITTEE TO
/INVESTIGATE AVIATION DIV.
/ JTJNEAU UP — A motion calling
/ for the creation of a special com
Imittce to investigate the activities
and programming of the Division
of Aviation was approved by a
voice vote in the House of Repre
sentatives Monday.
Named to the committee were
Reps. Pete Deveau, John Nusung
inya, iDon Harris, Raymond Chris
tensen, and Frank Chapados.
The motion was made by Rep.
Robert Blodgett, who told the
House that much “displeasure'*
had been expressed about the ac
tivities of the Aviation Division.
Civilians Take Over KP Duties
HUNTSVILLE, Ala. UP — Kit
chen police is over for soldiers
at the Army Ordnance Guided
Missile School at Redstone Ar
senal.
Col. Wm. MacPherson, the
commandant of the school, said
KP duty was taking too much
time away from troops sent here
for technical work on mainte
nance of missiles.
In the future, he said, civilian
contractors will take over the
job of washing dishes and swab
bing floors.
WEATHER OUTLOOK
Continued fair and cold. Low
tonight -27, high tomorrow -.15.
In the last 24 horns: High of -1*5,
low of -25. (Max. wind 19 mph
from ENE. Sunrise at 9:09 am.,
sunset at 3*49 pm. Temps, a year
ago today: High of 38, low of 30.
Extremes on this date since 1907:
High of 38, in 1981, low of -40 in
1919.
zational Meeting
AT THE CITY HALL