THE
NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
64th Year No. 9
NOME, ALASKA, MONDAY, JANUARY 21, 1963
Per Copy 150
Kennedy Says Cutting of Taxes
Is Best Way to Increase Tax Revenues
WASHINGTON m — President
Kennedy told Congress today that
cutting taxes, despite a huge de
ficit, is “the best way to open us
to increase tax revenues.”
Kennedy devoted the annual
economic report, last of his three
major messages to the new Con
gress, to allaying the fears of those
legislators who called his fiscal pro
gram—the heaviest spending and
biggest tax cut in history—“in
credible,” “a mistake,” and “too
big.” In the process he revealed
a few more details of the tax pro
gram he will send to Congress next
Thursday.
If the-country should slide into
recession this year through failure
to reduce taxes, the President said,
the prospective $11.9-billion deficit
would worsen and perhaps “break
all peacetime deficit records.’
By contrast, Kennedy predicted
the planned $13.5 billion tax re
duction will add $8.5 billion a year
to families income, boost output
of consumer items by $16 billion,
increase profits, and encourage
business investment.
He promised: “As economy re
turns to full employment, the
budget will return to constructive
balance.”
The message went on:
“I do not expect a fifth post
war recession to interrupt our pro
gress in 1D83.
“It is not the fear of recession
but the fact of five years of ex
cessive unemployment, unused
capacity and slack profits—and the
consequent hobbling of our growth
rate—that constitutes the urgent
case for tax reduction and reform.”
Doctors Restore
Man’s Severed Leg
BOSTON UPl — A strapping man
whose left leg was 90 per cent
severed and then re-attached to his
body continues to progress fairly
well, off cials at Peter Bent Bring
ham Hospital reported today.
William Hunt, 37, a sixt-foot,
200-pound father of seven, was
pinned against a garbage truck
by a car in Brookline.
Thirty doctors, nurses and tech
nicians took part in a six-hour
operation to restore the limb.
Doctors said circulation in the
leg is good and Hunt can move
his toes and has some feeling.
Philleo Nash Delayed,
Misses Nome Visit
Philleo Nash, Commisioner of the
Bureau of Indian Affairs, who was
to have been a guest of the Cham
ber of Commerce this noon while
visiting this area has been delayed,
according to a phone message re
ceived by Mr. R. D. Hollingsworth,
District Area Director, due to plane
trouble out of Detroit and re
turned to Washington.
Due to time limitations, Nome
will not be on the itinerary this
trip, but the commissioner stated
that on his next trip, Nome would
be the first stop.
Individual income tax liabilities
would be reduced by $6 billion a
year, most of which “would trans
late immediately into greater take
home pay” through lower tax with
holding on paychecks. More cuts
would come in 1964 and 1965, to
a total of well over $8 billion.
More than $7 million of this
would be poured into purchases of
new goods and services, Kennedy
said, and the spending stream
would be swollen as corporations—
also beneficiaries of tax relief—
increase dividend payments. The
rising demand would call for great
er output and more factory hiring
—and hence, he said, more income
and still more spending.
Special tax relief for small busi
nesses would be retroactive to
Jan. 1, 1963, he disclosed. This
would be a full year ahead of the
start of the basic corporate tax rate
reductions from 52 per cent to 47
per cent, a $2.5 billion cut.
Viet Cong Hopes
To Wrest Eventual
Victory in Viet Nam
SAIGON, South Viet Nam UP)—
A captured document indicates the
Communist hope to wrest eventual
victory in Viet Nam through what
the Reds call indecision in Wash
ington of the scale of American
intervention.
Authoritative sources here re
gard the document, dated Sept. 25,
1962, as genuine and of great im
portance of evaluating Red strate
gy. It apparently is a sort of Viet
Cong annual report.
America’s dilemma on the size
of forces it should commit, the
document says, “is the key weak
ness in U.S.South Vietnamese ef
forts against the Communists.”
The document says that the
United States is afraid of commit
ting large numbers of troops be
cause that would invite interven
tion by the Communist bloc of
nations and bring about a world
war.
The result may be that “the
enemy may get bogged down,” the
document continues. “Therefore
they may be compelled to nego
tiate and compromise. If negotia
tions and a temporary compromise
take place, we will have made an
important step toward victory.”
The document said that a settle
ment like the formula which neu
tralized Laos or like the Algerian
victory over the French would be
satisfactory to the Viet Cong.
$22,540 Is Nome’s Federal
Share of Sewage Project
JUNEAU UP) — The Depart
ment of Health, Education and
Welfare has approved a grant of
$22,540 as the federal share of
a sewage treatment facility at
Nome which will cost $806,870,
the Alaska congressional dele
gation said today.
Khrushchev
Agrees to Three
On-Site Inspections
WASHINGTON UP> — The United
States, Britain, and the Soviet
Union appeared today to be closer
to agreement on a nuclear weapons
test ban than they h'we been at
any time in almost two years.
Soviet Premier Khrushchev has
removed a major barrier to serious
negotiations by telling President
Kennedy that he would accept two
or three on-site inspections a year
in the Soviet Union as part of a
system to prevent cheating.
Reaction in the Senate, where a
test ban pact would have to be
approved, was heavily cautious.
But the general feeling was that
in accepting the principle of on
site inspection, Khrushchev’s move
was encouraging.
In an exchange of letters here
and in Moscow Sunday night, Ken
nedy told Khrushchev he was “en
couraged that you are prepared
to accept the principle on on-site
inspections.”
The State Department said the
United States now hopes that dis
cussions on the long deadlocked
test ban issue “can be continued
to a successful conclusions.”
U.S. officials said Khrushchev’s
policy reversal could lead to a
real breakthrough in the test ban
negotiations. Whether it does will
depend on whether Khrushchev is
willing to increase the number of
on-site inspections to double or
triple the total he told Kennedy
he would agree to at once—that
is, two or three a year. The United
States is asking for eight or ten.
Representatives of the three nu
clear powers will repoen negotia
tions in a meeting here Tuesday
afternoon.
I
Gromyko Says Only Three
MOSCOW (i*P> — Foreign Minister
Andrei Gromyko told correspond
ents tonight three on-site inspec
tions are all the Soviet Union can
agree to in a test ban agreement—
and insisted France must come in
too. ,
The Soviet Foreign Minister re
iterated to correspondents what
Premier Khrushchev said in his
exchange of letters with President
Kennedy.
Billy Welu and Joy Abel
Lead All-Star Bowling
KANSAS CITY W — Billy Welu
and Joy Abel turned in record
setting performances Sunday to
take the lead in the All-Star Bowl
ing Tournament.
Welu, former champion from St.
Louis, leads the 288-man field with
the best 16-game qualifying total
in the tournament’s 22-year-history,
3,673. He rolled a 975 four-game
series Sunday to boost his average
for the first four rounds to almost
230 per game.
Miss Abel, a petite redhead from
Chicago, soared to the top of the
women’s standings with a record
713 three-game series which in
creased her total for 12 games to
2,396. She opened her performance
Sunday with a 277, the best game
by a woman in the tournament.
$120,000 for Projects at
King Island and Unalakleet
JUNEAU (jF) — Accelerated Pub
lic Works funds totaling $544,500
have been allocated to the Bureau
of Indian Affairs for community
building projects in nine Alaska
villages, the BIA said today.
Robert Bennett, Area Director
for the agency, said $364,500 was
allocated for projects in Southeast
Alaska, at Klawock, Angoon, Met
lakatla, Saxman, Hydaburg and
Kake. Specific allocations by the
village have not been determined.
In the Anchorage District, $60,
000 was alocated for work at Ty
onek.
In the Nome District, the allo
cation was $120,000 for projects at
Unalakleet and at the King Island
village on the outskirts of nome.
Mr. R. D. Hollingsworth, Dis
trict Area Director, states that the
Unalakleet and Nome allocations
are planned for community halls
with facilities of several kinds to
operate as community centers for
the villages.
Fire Leaves 300 Homeless
SEOUL, South Korea OF) — A
three-hour blaze today destroyed
245 stores and 30 homes in a mar
ket area of Mokpo, a port city 200
miles south of here, press reports
said.
Some 300 persons were reported
homeless and damage was esti
mated at more than 100 million
won—$770,000. No casualties were
reported.
WEATHER OUTLOOK
Partly cloudy and colder. NF
winds 15 to 25 mph. Low tonight
15, high tomorrow 30. In the last
24 hours: High of 36, low of 28.
Max. wind 20 mph from the east.
Sunrise at 9:18 a.m., sunset at 3:09
p.m. Temps, a year ago today:
High of 32, low of 6.
U.N. Forces Enter
Kolwezi Peacefully
KOLWEZI. Katanga W — Unit
ed Nat;ons forces moved peacefully
into Kolwezi today and the military
action to reintegrate Katanga with
the rest of the Congo seemed virt
ually at an end
Operation “Grand Slam Two”
began at dawn. It was completed
about eight hours later.
Not a shot was fired and little
knots of civilians and unarmed
Katanga gendarmes waved cheer
ily as the U.N. column rumbled
past.
Kolwezi was the last stronghold
of Katanga’s secessionist forces.
The U.N. task force of 100
trucks, armored cars, troop car
riers and amphibious vehicles ren
dezvoused with an Katangan peace
delegation at the little village of
Pumpi, 45 miles from the center
of the this big mining and re
finery town.
Tshombe was expected at Pumpi
but did not show up.
Tshombe agreed last last week
to give the U.N. freedom of move
ment throughout Katanga but the
U.N. troops were prepared for
trouble anyway.
Council Holds Special Session
The Nome City Council met in
special session on Saturday to pass
Ordinance No. 209 which is to
increase the original project sum
mary for the school addition which
was built last summer.
The Council also met with the
> Nome Light and Power Utility
Board, concerning the needed
expansion of uitlities for anti
cipated needs.
The Council voted to apply to
the Housing and Home Finance
Agency for planning monies for the
proposed expansion.
I
What the People Are Saying
Mrs. Bob Emmons, teacher: “Our
home won’t be included in the
basic sewage system, but I’ll vote
YES. I’d rather have my chemistry
class learn about hydrogen sul
phide (rotten egg gas) in the labor
atory than smell it from the rotting
sewage under the school and from
open drains on main streets.”
Mrs. Don Lyle: “I’d vote all day,
if they’d let me, for water and
sewage.”
Joe Senungetuk (Nome Hard
ware): “I haven’t decided yet.”
Rev. Everett Bachelder: “We’re
not on the first part of the system,
but I am for it. It will be a wonder
ful, wonderful improvement. I was
glad to help with the survey last
summer.”
“I, Werner Borher, owner of the
Northern Metal Works, working in
sheet metal business, closely as
sociated with water and disposal
businesses, that is, in the manufac
ture of honey buckets, toilet hous
ings and water storage tanks and
retail sales of these items, will
vote ‘YES’ for water and sewage
for the City of Nome. Although I
will lose financially, I will definite
ly gain not only for myself but
for my many friends and all the
good people of Nome, a better way
of life.”
Mark Abolgalook: “YES, I want
it too!”
Edith Arnold: “Arctic Sanitary
Service wishes the people of Nome
to know that we believe in pro
gress. Even though the sewerage
and water system wil cut into our
business we are behind the project
100%. By voting YES in the coming
election we will make a better
Nome for all.”
Don Perkins: “As co-owner and
‘co-ower’ of a number of rental
units, I know that the cost of the
sewer and water project will be ex
pensive for me and other land
lords, but the advantages are in
our favor. We can’t afford to pass
up such an opportunity to get these
improvements which we should
have had long ago. Let’s not pass
it up now. I would have been in
favor if it even without matching
funds. If you have an questions
as to its needs, come and use a
school toilet facility!”
An old-timer who would rather
her name not be used: “I’ve lived
here 50 years without it and I
can get along a while longer.”
Pete Reader, Nome Telephone
Co.: “I am for the water and
sewage project, but believe every
one on the system should be re
quired to hookup.”
FOR THE
WATER & SEWER REVENUE BOND ISSUE
FROM 8:00 A.M. TO 6:00 P.M. TOMORROW