THE NOME NUGGET
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post office at Nome. Alaska, under Act of March 3, 1879.
IF YOU Lir-T A CALF EVERY DAY
Senate Approves
Capital Relocation Study
JUNEAU UP> — Legislation pro
viding for the creation of an eight
man committee to study the capi
tal relocation question was ap
proved by the Senate Saturday,
12-5 and was sent to the House.
Specifically the measure would
establish a committee consisting
<rf eight senators who serve at
large from the state’s four major
senatorial districts to study the
appropriate site for the location
of principal state offices.
Before giving the bill its ap
proval, the Senate beat back, on
a voice vote, a move by Sen.
Nicholas Begich to increase the
committee to 12 by taking popu
lation as well as area into con
sideration.
Under Begich’s proposal, south
east Alaska would have received
three spots on the 12-man com
mittee, southcentral Alaska five,
central Alaska three and north
western Alaska one.
Voting for the bill were Sens.
Bradshaw, Bronson, Butrovich,
Coghill, Hall, Hansen, Harrison,
Hopson, McNealy, Nolan, Smith
and Peratrovich.
Voting against were Sens. Be
gich, Foster, Kilcher, Owen and
Vance Phillips.
Speaking for the bill as it came
before the Senate, Sen. John Cog
hill said it was a “good solution
to a knotty problem.”
“We’ve got to stop this capital
erosion,” Coghill said. “We can’t
work together to develop this
state until this capital relocation
question is settled.”
Sen. Yule Kilcher said the com
mittee formula which would set
up an eight-man group was “the
most conservative which could
have been followed.
“We need representation for
population as well as area.”
Sen. A1 Owen said he could see
■“nothing in this bill which is
going to quiet the capital reloca
tion issue.
“The entire study could better
be handled by the Department of
Economic Development and Plan
ning.”
.Joining Coghill in speaking for
the bill, after Begich’s amend
ment was knocked down, were
Sens. W. O. Smith and Lester
Bronson.
Rep. Rivers Seeks to
Compensate Tlingit
Indians for Their Land
U.S. Rep. Ralph Rivers has in
troduced a House joint resolution
calling upon the federal govern
ment to compensate the clans of
Tlingit Indians along the coastal
area of Alaska between Cape Fair
weather and the Copper River for
extinction of their Indian title or
aboriginal rights in that area.
Congressman Rivers stated that in
his opinion the issuance by the
federal government during the
last ten years of about 114 mil
lion acres of oil and gas leases in
this portion of Alaska outside the
boundary of the Tongass National
Forest has constituted a “com
pensable taking” and, in fact, ex
tinguished the Indian rights in
volved. He further stated that the
figure of $500,000 as the basis for
compensation roughly coincides
with the amount of money which
the federal government has real
ized in oil and gas leasing reve
nues in the area.
In concluding, Mr. Rivers said,
“this measure is supplemental to
the 1959 action of the Court of
Claims declaring that establish
ment of the Tongass National
Forest with subsequent timber
sales extinguished Indian titles
within the forest and constituted
a ‘compensable taking’.” Accord
ingly, a final decision will soon be
reached as to the amount the fed
eral government will pay the Haida
and Tlingit communities in south
eastern Alaska for extinction of
their Indian title within the Ton
gass National Forest. Thus, with
the passing of the Rivers resolu
tion the problem would be re
solved in the entire area involved
both within, and without the Ton
gass National Forest.
STRAUB
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■— i i 11 i
Propose Repeal
Of State Industrial
Tax Incentive Act
JUNEAU GP — Legislation pro
posing repeal of the state indus
trial tax incentive act, as of next
June 30, was submitted to the
House Commerce Committee Fri
day.
The bill, a substitute to a meas
ure introduced at the request of
the Legislative Council was pro
posed by Earl Hillstrand, (D
Anch.), who described it as a means
of “re-evaluating the entire mat
ter of tax incentives.”
Hillstrand’s original bill would
have required the approval of local
governments before the state could
grant an industrial tax incentive
involving local taxes to an indus
try planning to locate within the
boundaries of a local government
unit.
“We are not doing anything in
the incentive act to actually en
courage new, basic industries to
invest in Alaska,” Hillstrand, a
member of the committee, told the
group.
“The act is as phony as a three
dollar bill.”
Hillstrand said the substitute
measure was drawn up as a means
of bringing the entire matter be
fore the Commerce Committee,
and possibly before the legisla
ture.
“I want the committee, and per
haps the entire legislature, if the
committee sees fit to bring the
substitute out, to consider the
whole matter of encouraging in
vestments in Alaska.
“I don’t think, personally, that
the tax incentive act is in itself
enough encouragement for new
businesses to establish in Alaska.
“We have to do more. We have
to assure business, by actions as
well as words, that this is the
place for them to do business.”
Rep. Forbes Baker, while not
committing himself on the substi
tute measure, said he felt industry,
before locating in Alaska, wanted
a stable tax and business regula
tion structure.
“Does a tax incentive outweigh
a good, stable tax situation?”
Baker asked. “We are constantly
playing with workmen’s compen
sation and employment security,
for instance.
“I don’t think this lends itself
to the stability new industries
find attractive.”
.Rep. Wm. Boardman said the
tax incentive act was the moti
vating factor in the establishment
of pulp mills at Ketchikan and
Sitka.
“The establishment of these two
plants,” Boardman said, “has had
a growing and healthy impact on
the entire state.”
Boardman said the committee, in
even considering Hillstrand’s sub
stitute bill, was “toying around
with something that is of far
reaching importance.”
Hillstrand said he did not want
to even hint he and Boardman did
not see eye to eye on the need and
importance of encouraging new
industries to settle in Alaska, but
he repeated that he did not feel
the tax incentive act was the
whole answer.
Hillstrand said this was one
field where labor and management
should be working hand in hand.
“One of the biggest mistakes
we’ve made in this program,”
Hillstrand said, “is not having
labor and commerce working to
gether in trying to get new basic
industry into the state.
“They are traveling down the
same road, but in different cars.”
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U.S. Brands British
“Brain Drain" of Scientists
As Absurd Allegations
WASHINGTON — Govern
ment officials Saturday branded
as absurd allegations by Britain’s
Minister of Science that the United
States is conducting a high-pres
sure recruiting campaign to lure
British scientists.
The American school system is
able to meet most of the United
States’ need for scientists and engi
neers, the officials said. Although
some foreigners are drawn to this
country, “greener pastures” and
not high-pressuring tactics are the
reason, they said.
The British Minister, Lord Hail
sham, told the House of Lords last
week that the American high
school system is unable to turn
out first-rate scientific talent. As
a result, he said, the United States
sends talent scouts to Britain to
buy British brains for service in
the United States, thus creating
a “brain drain.”
Officials of the National Science
Foundation, the National Academy
of Sciences, the National Aero
nautics and Space Administration
and others flatly denied the
charge.
Dr. Edward Wenk, assistant to
Dr. Jerome Wiesner, President
Kennedy’s science adviser, said:
“The facts indicate that the
total number of people coming
from the United Kingdom is very
small. In 1961, the United States
turned out 93,000 engineers and
scientists and there were 3,900
immigrants, only 4 per cent of the
total. Of the foreigners, 5 per
cent came from the United King
dom.
“These 575 who came from the
United Kingdom may represent a
sizable fraction of the English pro
duction but the facts suggest at
the present time that one should
not conclude that we depend in
any major way on the brain drain
of which Lord Hailsham spoke.”
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All Is Not New On
The “New Frontier”
WASHINGTON Ut> — All is not
new on the New Frontier. While
lunching with President Kennedy
a Tennessee newspaper editor idly
counted stars on the border of the
White House dinner plate. His
tally: 48.
A visiting New Yorker on a
tramp past the executive mansion
noticed that the flags flying in
honor of George Washington’s
birthday also carried only 48 stars.
As every school boy knows, the
nation’s emblem now blazes with
50 and the visitors’ reports were
relayed to the senators of the
union’s newest states — Alaska
and Hawaii — in case they wished
to lodge a protest.
However, the solution to the
missing stars is simple enough. In
case of the flags, it’s economy. Al
though the 50-star flags are official,
the government has ruled that the
old 48-star flags may wave until
worn out.
As for the plates: Presidential
families traditionally select their
own pattern. So far Mrs. Ken
nedy hasn’t chosen hers, and the
Tennessee editor was dining from
china used by former President
Franklin D. Roosevelt.
Guardsman Receives
Distinguished Promotion
Col. Fred Reger, Asst. Adjutant
General, Alaska Army National
Guard, announced, the selection of
M/Sgt. John Waghiyi, Co. A, 1st
Scout Bn., Savoonga, for promo
tion to First Sergeant E-8.
First Sgt. Waghiyi was one of
four selected for promotion from
a total of seven Guardsmen who
were qualified.
The selection was based on: time
in grade; years in present assign
ment; total years of service, in
dividual qualifications; past per
formance; recommendation of in
dividuals’ commanding officer; and
whether the assignment being held
required a higher rank.
Waghiyi has been a member of
the Alaska National Guard for
over 13 years and held his former
rank for 84 months. He assumed
his new rank effective Feb. 26.
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