NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
63rd Year No. 106
NOME, ALASKA, FRIDAY, SFPTFMBFR 7, 1962
Per G>pv 1 5£
Action Started In Congress to Bolster
O
Nation’s Sagging Gold Mining Industry
WASHINGTON (/P> — A bi-par
tisan move was started in Congress
yesterday for possible action next
year to bolster the nation’s sag
ging gold mining industry.
Four congressmen — two Demo
crats and two Republicans — ap
peared before a House Interior
Subcommittee to support proposals
for a gold procurement and sales
agency in the Interior Department.
The deportment, after a survey,
would determine the price to be
paid for newly mined domestic
gold. It could not exceed $105 per
ounce.
Merrill Shoup of Colorado
Springs, president of the Golden
Cycle Corp., supported the pro
posal. He said it “is a positive ap
proach to a critical problem
confronting our entire nation.
“We are closed down because
of a government policy which re
fuses us the opportunity to mine
our ore profitably. We are forced
to bring what we dig from the
granite beneath the Rockies to the
Treasury of the United States and
accept a flat S35 an ounce for it.
“We are not allowed to offer
our product on an open market
and allow the law of supply and
demand to set a price which will
pay our costs and give us a rea
sonable profit. As long as the gov
ernment controls all sales and
purchases of gold, something must
be done to increase the price it
pays us for our product."
Chairman Ed Emondson, (D
Okla.), said after the session that
he feels the time schedule of Con
gress makes action impossible this
year but said the subcommittee
wanted to lay the groundwork for
1963 and to get statements of po
sition from both the Treasury and
Interior Departments.
Rep. Harold Johnson, (D-Cal.),
argued that the bill would bring
back and keep domestic gold pro
duction at the maximum, give a
World Series Will Get
Underway In National
League Park Oct. 3
NEW YORK U — The World
Series will start in the home park
of the National League pennant
winner on Wednesday, Oct. 3, Com
missioner Ford Frick said today.
The second game also will be play
ed there.
After an open date on Oct. 5
for travel, the third, fourth and
fifth games will be played in the
American League city. If further
play is necessary to determine a
winner in the best of seven series,
there will be another open date
on Tuesday, Oct. 9 with competi
tion resuming in the National
League park on Wednesday, Oct.
10. A seventh game would be
played there Thursday, Oct. 11,
if needed.
Frick’s announcement followed
an all-day meeting with delegates
representing the league leading
New York Yankees, Minnesota
Twins and Los Angeles Angels of
the American League and the Los
Angeles Dodgers, currently in first
place in the National League, the
San Francisco Giants, Cincinnati
Reds and Pittsburgh Pirates.
The commissioner also announced
an increase in ticket prices. Box
seats for the coming games will
cost $12 each, for reserved seats
$8, for open stand reserve seats
$4, bleachers $2 and standing room
$4.
just return to the miner, furnish
industrial users with gold at a
fair price and add to, rather than
deplete, the monetary reserves.
Rep. ,T. Edgar Chenoweth, <R
Colo.), said the time was long past
when Congress should take steps
to increase gold production. He
added:
“This can only be done by re
opening our gold mines which are
now closed for the reason they
cannot operate on $35 an ounce
for gold.”
Rep. E. Y. Berry, tR-S.D.>, said
the nation’s gold reserve face the
same disaster confronting the gold
mines.
Rep. Ralph Rivers noting that
gold mining rapidly is fading out
of the picture in his state, added:
“We’ve got to do something
about the situation.”
Salmon Pack Climbs Slowly
JUNEAU (J’l — Alaska’s 1962
salmon pack continues to climb
slowly as the season nears an end,
the State Department of Fish and
Game reported today.
The pack through Sept. 2 was
3,300,797 eases, compared with a
total pack of 3,113,555 cases
through Sept. 3 of last year.
The pack by specie, on a state
wide basis, was 43,600 cases of
kings, 756,035 cases of reds, 71,205
cases of cohos, 1,807,113 cases of
pinks and 631,844 cases of chums.
I Will Restore Territorial
l Dimensions to Fourth
Class Parcel Mail Matter
WASHINGTON UP) — Sen. Hi
ram Fong, (R-Hawaii', said today
the Senate Post Office Committee
has adopted his amendment to re
store the size and weight limita
tions of fourth class matter to and
from Hawaii and Alaska.
Fong said his amendment would
restore the fourth class rates that
applied before Hawaii and Alaska
became states.
As territories, Hawaii and Alas
ka had higher limits allowing for
the receipt and mailing of fourth
class parcels 100 inches in length
and girth combined, and weighing
a minimum of 70 pounds. State
hood brought them within regula
tions applying to the 48 other
states, thereby reducing size and
weight limitations to 70 inches
and 20 pounds, Fong said.
Ronald Cease Named
Director of Local Affairs
JUNEAU UP) — The appointment
of Professor Ronald C. Cease of
the University of Alaska as State
Director of Local Affairs was an
nounced Wednesday by Gov. Wm.
Egan.
Cease will succeed Rodger Pe
gues of Juneau, who leaves the
post Sept. 15. Pegues plans to ob
tain a law degree at the University
of Washington.
Cease has been an assistant pro
fessor of political science at Alaska
University since 1960. He holds
a bachelors degree in political sci
ence from Reed College and a
masters degree in public adminis
tration from Syracuse University.
Before coming to Alaska, he
served as a research assistant for
the University of Oregon’s Bureau
of Municipal Research and the
Central Lane County Planning
Commission at Eugene, Ore.
Fire Does Extensive
Damage to Juneau
Ferry Terminal Building
JUNEAU UPi — Fire touched off
by a piledriver boiler explosion
caused damage estimated unoffi
cially at some 8100,000 today to
equipment being used to construct
the Juneau ferry terminal transfer
building at nearby Auke Bay.
There were no serious injuries.
The boiler explosion started a
fire on the piledriver and quickly
spread to a barge laden with creo
soted planking which was to be
used in the transfer bridge.
The piledriver was destroyed
virtually to deck level. The barge
was cut loose and drifted ashore,
where its cargo was completely
destroyed by flames.
Piling already driven for the
ferry structure apparently escaped
damage.
‘Meteorite’ Which Landed
In Wisconsin Is Man-Made
CAMBRIDGE, Mass. UP> — The
Smithsonian Astrophysieal Obser
vatory said today that a metal
fragment found in Wisconsin on
Wednesday was man-made, but it
was unable to determine if it was
from a Soviet satellite.
The 20V£-pound piece of metal
could be a fragment of the 10,000
pound Soviet Sputnik IV that ap
parently broke up after 27 months
in orbit and disintegrated.
The North American Air Defense
Command reported the satellite
broke up in the earth’s atmo
sphere shortly after a fiery show
over Wisconsin’s skies. The frag
ment was found in Manitowoc and
sent to Smithsonian.
The observatory here reported
there were no markings on the
metal that would give any clue
as to what country it came from.
TRAFFIC DEATHS IN ALASKA
TAKE 29 LIVES THIS YEAR
JUNEAU (J*) — Public Safety
Commissioner Martin Underwood
said today 1962 traffic accidents
took the lives of 29 persons in
Alaska during the period ending
last Tuesday.
The traffic death count for the
same period a year ago was 20.
Fire fatalities during the period
ending Sept. 5 totaled 13, com
pared with 40 in 1961.
Rain Covers State
A small low pressure center lo
cated 150 miles southeast of Kodiak
brought rain to the Alaska Penin
sula, Cook Inlet, the Susitna Val
ley, the North Gulf Coast and the
Copper River Basin today.
Fair to partly cloudy skies were
common over the southeast Pan
handle and the Yukon-Kuskokwim
delta area.
Generally cloudy skies blanketed
the remainder of the state and a
few snow flurries were reported
along the western coastal region.
Early morning temperatures
ranged from a low of 28 at Bar
row and Barter Island to a high
of 48 at Annette Island and Cold
Bay. The high yesterday was 64
at Annette Island.
WEATHER OUTLOOK
Mostly cloudy with occasional
light rain and fog. Little change
in temperature. In the last 24
hours: High of 48, low of 45. Max.
wind 18 mph from SW. Sunrise at
5:03 a.m., sunset at 6:54 p.m.
Temps, a year ago today: High of
47, low of 40. Extremes on this
date since 1907: High of 56 in
1950, low of 27 in 1945.
Egan Doubts Stepovich
Will Agree to Debate
JUXF.AU — Gov. Win. Egan
said today he had accepted an in
vitation by the Ketchikan Central
Labor Council to sponsor one of
tiie debates proposed by Egan be
tween himself and Mike Stepovich,
Republican candidate for governor.
Egan said, however, he doubted
whether the Ketchikan or any
other debate would ever be held,
because of what he termed Stepo
vich’s "indecisive comments” on
whether Stepovich would take
part in the proposed public debates.
Plans arc Worked
Out to Keep Science
Pavilion Open at C21
SEATTLE i/P> — Most of the
details have been worked out to
allow the federal government and
a non-profit group to keep the U.S.
Science Pavilion open after the
World's Fair closes, the Pavilion
Commissioner said Thursday.
Dr. Athelstan Spilhaus said the
government would continue to own
the building complex, but the pa
vilion would be managed by Pacific
Science Center, Inc.
Costs of maintaining the exhibit
reportedly would come from a
nominal admission charge from
industry and exhibitors.
Spilhaus said the building would
be ”a living science center, and
1 hope it will be the first of many
such centers in the United States.”
Marshall's Nomination Approved
! WASHINGTON W) — The Senate
I Judiciary Committee approved
I Thurgood Marshall’s nomination to
I be a federal judge by a vote of
11 to 4 today.
The four votes against recom
mending Senate confirmation of
the Negro attorney, former counsel
for the National Assn, for the Ad
vancement of Colored People, were
cast by southern Democrats.
Marshall’s nomination to be a
judge on the 2nd U.S. Circuit Court
of Appeals first was submitted by
President Kennedy a year ago
this month.
Nuclear Sub Sea Dragon Picks
Up Crew from Ditched Plane
PORT ANGELES, Wn. UPi — A
Navy patrol plane with 12 aboard
ditched in the ocean off northwest
ern Washington Thursday night
and its crew was rescued by the
nuclear submarine Sea Dragon.
The PV-5M Martin Marlin de
veloped mechanical difficulties, the
Coast Guard reported.
The Sea Dragon was enroute to
Pearl Harbor from Seattle after
celebrating its historic voyage un
der the Arctic ice cap last month.
LWY Center Pre-School
Groups Begin Sept. 17-21
The winter recreation program
of the Lavinia Wallace Young Com
munity Center will begin the week
of Sept. 17-21.
There will be children’s groups
for those who are or will be four
years of age not later than Nov. 1,
through grade 9 in public school.
Registration will be at at the first
meeting and no places will be re
served in advance. Children who
were in good standing will be
given first choice of membership
if they enroll on the first day. New
members will be accepted on a
first come, first taken basis.
To accept capacity enrollment
many volunteer adult and teen-age
teachers are need. If you can and
will help, please call or see Miss
McCoy.
Senate Passes
JFK’s (Ihouped-Up
Tax Revision Bill
WASHINGTON W — Toe Sen
ate passed President Kennedy’s
badly-mauled tax revision bill
Thursday preserving in it the bil
lion-dollar incentive tax cut for
companies to invest in new ma
chinery and equipment.
The provision, to encourage
American firms to modernize their
plants — so they can produce at
lower cost and compete better in
world trade — is regarded by the
administration as sufficient justi
fication for the measure along with
a number of loophole-closing pro
visions.
But the Senate version still is a
far cry from the bill which Ken
nedy proposed to Congress April
20, 1961.
Aside from the tax credit for
companies investing in new ma
chinery, the second most important
Kennedy proposal was tax with
holding on dividend and interest
income.
That was knocked out of the
bill by the Senate Finance Com
mittee, and its decision was sus
tained by the Senate. The House
had given Kennedy a victory by
keeping this in the measure.
A letter-writing blitz from hun
dreds of thousands of savers and
investors helped defeat it in the
Senate.
The administration had esti
mated that withholding would
bring into the Treasury about $780
million a year in taxes now evaded
or not paid through ignorance,
j With Senate action on the bill,
I a Senate-House Conference Com
j mittee will now undertake to ad
| just differences.
Rep. Wilbur Mills, (D-Ark.), who
will head the House delegation, has
said he will fight in the conference
to retain the withholding plan, but
most supporters of the plan think
the odds are slim.
As Kennedy originally proposed
the bill, it would have yielded
about $600 million more in reve
nue from loophole closers than the
investment credit would have cost.
The House cut out considerable
revenue but still passed a bill on
the plus side because it retained
withholding.
The Senate version will add to
the Treasury deficit. Estimates
range from a Treasury forecast of
a $210-million annual loss to a
$555-million red ink figure com
piled by congressional experts.
The measure is only a step
toward the broad revision of the
tax laws.
Kennedy has said that next year
he will propose a substantial
across-the-board income tax cut
effective as of Jan. 1, 1963.
The Senate bill contains many
loophole-closing sections asked by
tin administration but in watered
down form.
They would pick up an esti
mated $675 million in annual reve
nue bv some tightening of the
rules on business entertainment
and travel deductions; by boosting
levies on mutual savings banks,
savings and loan associations,
mutual fire and casualty com
panies, by taxing earnings of
movie stars and others who have
established permanent residence
abroad and in other ways.
Mrs. Muriel Crumrin of Pilot
Rock, Ore., arrived to teach the
commercial subjects in Nome High
School, making a full staff of
teachers for the opening of school.