m NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
64th Year No. 85
NOME, ALASKA, WEDNESDAY, JULY 17, 1963
Per Copy 150
Senators Told Gold Industry Will Die;
U.S. Will Be Dependent on Kremlin
Associated Press Special Service
WASHINGTON UP) — Senators
were told today that without help
the domestic gold mining industry
will die and the United States will
be dependent on supplies from the
Soviet Union and other foreign
countries.
Spokesmen for the industry
testified at a Senate Interior Sub
committee hearing that the price
of gold will have to be raised to
prevent destruction of domestic
mining and milling operations.
They recommended subsidies which
would be authorized by bills before
the subcommittee.
Opposition to the bills was
voiced by a spokesman for the
Kennedy administration, John M.
Kelly, Asst. Secretary of the In
terior for Mineral Resources.
Kelly said Interior is going along
with recommendations of the
Treasury Department against the
proposed subsidies, on grounds
they would damage the U.S. dollar
in the international market.
Donald McLaughlin of San
Francisco, representing the Home
stake Mining Co. and the American
Mining Congress, and George A.
Nugent of Reno, president of the
Paramount Mining & Milling Co.,
spoke for the industry.
McLaughlin said the Homestake
mine in South Dakota, largest sur
viving gold mine in this country,
is faced with the threat of closure
without help.
McLaughlin said Homestake’s
production in the last 20 years
has remained about the same but
its taxes and operating expenses
have more than doubled.
Without technical advances and
labor-saving devices, McLaughlin
said, Hometstakes could not have
survived.
The Treasury argument that a
change in the gold price would
hurt the free world’s monetary
system was called by Nugent “as
Soviets and Chinese
Resume Talks after Recess
MOSCOW (A — Chinese and So
viet negotiators resumed their talks
today amid reports that they were
preparing a communique to soften
the thunder of their split.
The talks resumed after a day’s
recess during which a rumor circu
lated that Premier Khrushchev
deliberately prolonging the talks
so he could point to his differences
with Communist China as an ar
gument for Western delegates at
the test ban negotiations not to
press him too hard.
It was exactly the same sort of
argument as the Western delegates
had to offer — that an unsatisfac
tory agreement never would be
approved by the U.S. Senate.
Red China's official Peking
People’s Daily accused the United
States today of making “increased
efforts to meddle in Chinese-Soviet
relations and to woo the Soviet
Union in opposition to China.’’ The
paper said the U.S. press is ener
getically inciting the Soviet Union
against China.
WEATHER OUTLOOK
Variable cloudiness with little
change in temperature.
In the last 24 hours: High of 53,
low of 39. Max. wind 26 mph from
NW. Sunrise at 2:15 a.m., sunset
at 9:58 p.m.
Temps, a year ago today: High
of 62, low of 45.
one of the biggest and most dam
aging big lies inherited from pre
vious administrations.”
“Western mining was killed by
U.S. Treasury policy,” he declared.
“Remove that curb and our in
dustry will be resumed in pro
portion to incentive designated.”
Kelly testified “the Department
of Interior has to recognize that
gold is unique — that it cannot be
considered as a commodity divorced
from its monetary implications.”
“The United States dollar, be
cause of our monetary policy,” he
said, “has become a standard
against which the currencies of
the world are measured.”
“The fixed-price relationships
between the dollar and gold is
much more important in our mone
tary system than is the supply of
gold as a commodity for industrial
use,” Kelly said.
Kelly said Interior has taken
positive steps to help the gold
industry. He mentioned a study
of reserves and exploration pro
gram.
Sen. Ernest Gruening asked:
“Isn’t this like giving a starving
man a bill of fare and telling him
to eat it?”
Sen. Karl Mundt, (R-S.D.), said
the United States has been follow
ing a “stupid, suicidal policy”
which threatens to make this coun
try the “victim of Russia which
wants to bury us ... I suppose
in an abandoned gold mine.”
FAA Discloses That
“Faith Is Not Enough”
. . . License Suspended
WASHINGTON UP) — Last win
ter an amateur bush pilot and a
girl from Brooklyn crashed in the
sub-zero wilds of Canada and sur
vived for 48 days on little more
than snow and faith.
To an amazed world, pilot Ralph
Flores became something of a
hero.
His 21-year-old passenger, Helen
Klaben, said Flores’ courage and
deep religious faith saved their
lives during the bleak, starvation
ordeal.
But Tuesday the Federal Avia
tion Agency disclosed it had re
voked his license for a year for,
in effect, relying too much on
faith.
It said he violated more than
a dozen rules in his attempted
flight south from Alaska, includ
ing failing to carry adequate pro
visions and emergency equipment
in his light plane.
The 42-year-old Flores, who was
working as a mechanic in Fair
banks, was flying home to San
Bruno, Calif., for a vacation. Miss
Klaben, an engineering student
working her way around the world,
went along because her expenses
were $25 less than the regular air
line fare.
In New York, Miss Klaben said
although she didn’t want to “hold
anything against” Flores, she
couldn’t “condone” any violation
of flight rules.
If the FAA charges are true,
she added, it indicates he never
should have taken off on the
flight.”
“We were just extremely lucky
—thank God,” she said.
Miss Klaben, who lost five toes
as a result of her ordeal, is now
completing a book on her ex
perience.
Disastrous Red
Salmon Season
Being Assessed
JUNEAU UP — The impact of
the disastrous red salmon season
in Bristol Bay on residents of the
area, and upon state finances, was
being assessed by state officials
today.
Walter Kirkness, State Commis
sioner of Fish and Game, was
making an on-the-scene evaluation
of the season, the worst in the
long history of the Bristol Bay red
fishery.
Ed Marvich, Deputy Commis
sioner of Fish and Game, was can
did in acknowledging that the
agency’s biologists had no answer
as to the cause of the poor run.
The Fish and Game Department
and the University of Washington’s
Fisheries Research Institute had
forecast jointly, based on high seas
research, that 15 million reds would
return to the bay this year, in
cluding the Japanese high seas
catch.
While the scope of the Japanese
take is not known, the American
catch in the bay was pegged at
2.5 million fish, with escapement
estimated at 3.2 million reds. The
catch of 2.5 million, was far below
the previous low catch of 2.9 mil
lion, in 1958.
“We just don’t have any answers
at this time,” Marvich said. “We’re
going through all of our statistics
now, trying to find out what went
wrong.
“We’ve been pretty close in our
forecasts in past years, but there
was a monkey wrench in there
someplace this year. We’re trying
to find it.”
The Bristol Bay red fishery will
produce only an estimated $181,900
in raw fish taxes this year com
pared with $330,000 in 1962.
There will also be losses in state
individual net income taxes, al
though the Department of Revenue
is reluctant to even make an esti
mate of how much might be in
voved.
Juvenile Crime
Wave Keeps Police
Department Alert
A juvenile crime wave has kept
the Police Department on the alert
for the past week with several
boys ranging from 9 to 13 years
being picked up and turned over
to the Youth and Adult Authority.
The trailer house, rented to Mil
ton Morgan, by the North Star
Hotel, was broken into and jewelry
and liquor was stolen. Most of
the jewelry has been recovered.
Mrs. Morgan stated that Nome
is fortunate to have such an alert
Police Department and also such
fine cooperation of the business
people in helping to recover the
stolen jewelry, part of which were
heirlooms and not replaceable .
The Nome bowling alleys were
broken into by the removal of a
lock on the back door and money,
cigarettes and pop stolen. Also
broken was the lock on the bowl
ing ball polishing machine. Some
of the items have been recovered.
The Assembly of God Church
was broken into but nothing was'
reported missing. Indications were
that the boys were looking for
money.
The home of Jerome Trigg was
broken into and $71.35 was taken
which has been returned.
Also broken into was the home
of Matilda Jones and the John
Walters fishhouse.
Racial Integration
Works with Great
Success In Sports
WASHINGTON W—Ford Frick,
Commissioner of Baseball, told the
Senate Commerce Committee to
day that racial integration has
worked with great success in base
ball because of “the example of
the players themselves.”
He conceded that the introduc
tion of Negro players into baseball
shortly after World War II was
approached with some fears but
declared “we had no reaction at
all, no incidents” based on race.
Top officials of professional
football also testified that their
sport has had only minor racial
problems.
The Commerce Committee is
considering legislation covering the
public accommodations portion of
President Kennedy’s general civil
rights program.
That section, aimed to open to
all races such businesses as hotels,
restaurants, theaters and sports
arenas, has been treated in con
gressional hearings so far as the
major item in the seven-point
program.
On the other side of the capital
the House Civil Rights Subcom
mittee working on the whole Ken
nedy package, heard from AFL
CIO President George Meany that
“time has run out on long-run
solutions” to the problem of dis
crimination against Negroes.
Meany urged speedy enactment
of the administration bill and call
ed for even stronger measures in
some areas.
Those hearings were only two
of a wide array of civil rights
fronts in the capital.
Miss U.S.A. Will
Be Selected Tonight
MIAMI BEACH, Fla. UP) — Miss
U.S.A. 1963 will be chosen tonight
from 15 beautiful young women
selected from a field so outstanding
the judges required extra time to
handle their balloting.
The 15 will go on stage at Miami
Beach Convention Hall at 8 p.m.
while 58 foreign contestants relax
on the sidelines waiting for Thurs
day’s opening of Miss Universe
judging.
The crowning of Miss Universe
Saturday night will cap two weeks
of festivities highlighting this re
sort area’s summer season.
Miss Florida, Linda Egland,
didn't make the finals but her cos
tume was judged best. She char
acterized the space age in Florida
by wearing a $7,000 pressurized
space suit.
Two who traveled the farthest,
Miss Alaska and Miss Hawaii, al
so failed to reach the finals. But
Miss Nina Whaley’s silvery gown
representing the Alaskan salmon
was judged first runner-up. Miss
Susan Milian’s island costume was
another runner-up.
Russian Trawler Spotted
Off Washington Coastline
SEATTLE ifP — A Russian fish
ing vessel was sighted about 30
miles off the Washington coast
Tuesday the Coast Guard said.
The 125-foot trawler was spotted
south of Vancouver Island. It was
not known if the vessel carried any
special electronic equipment.
The Coast Guard did not take
any action because the trawler was
outside the three-mile coastal limit.
It was not known whether it
was the first time a Russian trawl
er had approached so near the
coast.
DANGER..
Direct Viewing
Of Eclipse Can
Cause Blindness
Never look directly at an eclipse
of the sun. You may cause serious
damage to your vision, warns the
National Society for the Preven
tion of Blindness, Inc.
During the afternoon of Satur
day, July 20, the eclipse of the
sun will cause complete darkness,
in parts of Alaska and ther areas
of the continent.
This eclipse means a serious
threat to the eyesight of every per
son, both adults and children, who
watch it directly. Children are par
ticularly susceptible to vision
damage. There is no safe way to
look directly at the eclipse! Smoked
glass, exposed photographic film,
and dark glasses are not adequate
protection for watching the eclipse.
Many who have tried them in past
eclipses have suffered eye injuries.
After a partial eclipse of the
sun three years ago, widespread
reports of damaged vision resulted
in western states, especially among
school children. The state of Utah
counted 31 definite cases of eye
burns after the September 1960
eclipse; all but five of the victims
were children. An estimated 75
children suffered retinal burns in
the state of Washington during
the same eclipse.
During an eclipse, even though
the dazzling visible rays of the
sun are blocked, dangerous infra
red rays are nevertheless emitted.
These rays, when focused on the
! delicate retina of the eye, can cause
harmful burns much the same as
a magnifying glass can focus the
sun’s rays on a piece of paper and
burn it. Because the retina is not
sensitive to pain, the victim never
realizes he has been harmed until
too late. Such retinal burns are
incurable, and the victim has a
blank spot in his field of vision
where the burn scar remains in
the retina.
In Australia, 170 persons, mostly
children, are reported to have suf
fered retinal burns during a 1959
eclipse.
One method of indirect viewing
is to let the image of the sun be
projected through a hole in a
piece of cardboard onto white
paper. The viewer keeps his back
to the sun.
REMEMBER, there is no safe
way to look directly at an eclipse
of the Sun !
Progress Made for
Treaty Banning Tests
MOSCOW i/P) — The Soviet Un
ion, Britain and the United States
announced today they had “made
progress in drafting some of the
provisions” for a treaty banning
nuclear tests in the atmosphere,
outer space and under water.
The communique, issued after
three days of negotiations here,
was the first official word that the
treaty excluded underground tests
and that the formal drafting stage
had been reached.
It intended to confirm diplo
matic reports that things were
going smoothly.
The communique also said:
“Views were exchanged on other
matters of mutual interest.”
Possibly these included a non
agression pact between East and
West.