NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
64th Year No. 6
NOME, ALASKA, MONDAY, JANUARY 14, 1963
Per Copy 15£
Struggle for Leadership
LOME, Togo UP> — A struggle
for leadership of this tiny West
African country appeared to be
developing today in the wake of
a sergeants’ revolt and the assas
sination of President Sylvanus
Olympio.
Gunned down on the street out
side the U.S. Embassy early Sun
day, Olympio apparently was the
only casualty of the fast-paced
revolt. Gunfire was heard in the
streets around 2 a.m. The 60-year
old president’s bullet-riddled body
was found outside the unlocked
embassy gate a dawn.
The body was taken into the
embassy.
Most of the other members of
his government were arrested. They
were reported unharmed and held
at a military camp outside Lome.
Police Raid French Quarter
NEW ORLEANS UP* — PoTce
squads swarmed through the
French Quarter early Saturday,
making at least 31 arrests in strip
joints and barrooms.
The widespread operation, plan
ned by Dist. Atty. Jim Garrison’s
office, rounded up 16 women and
15 men within 90 minutes.
All the women were booked with
the state act of relative to obscenity.
The men were booked with per
mitting an immoral or obscene act
on the premises.
r
De Gaulle Will Not Join
British-American Pact
PARIS W) — President Charles
De Gaulle said today France can
not join the British-American
agreement made at Nassau estab
lishing a multi-national Polaris
missile force.
De Gaulle, speaking to his first
news conference since last May,
responded to a question on whether
France might accept President Ken
nedy’s offer of Polaris missiles.:
“I do not believe that anyone
thinks that we can subscribe to
the accords of the Bahamas.”
Pioneers Will Hold Joint
Installation of Officers
The Pioneer Women of Alaska,
at their regular Friday meeting,
made plans for a joint installation
ceremony which they will sponsor
next Saturday evening for all
Pioneer of Alaska men and women
and theif families.
In charge of the supper, .which
will precede the installation and
the entertainment to follow, is
Barbara Martin, incoming presi
dent of the organization.
An interesting group of pictures
of early Nome, never before dis
played will be viewed by the Pio
neers for the first time. These
pictures were a gift to the Nome
Museum by the late Jim Gaffney.
1
Why We Need a Sewer and Water System
By Pearse M. Walsh
(Letter to the Editor)
One of Nome’s basic needs is a Sewer and Water system and on
Jan. 22 the people of Nome will decide the progress rate for Nome’s
development at this bond election and decide whether Nome’s
status will regress or whether this bond election will pass with a
good margin and give Nome its opportunity for progress. We all
know that there will be no new homes built in Nome unless the
sewer and water system is approved. It is sad to state that Nome
is probably one of the oldest cities in Alaska and by far the best
known in the history books for its has a magic name and has
attracted thousands of visitors. In 1962 some 5,000 tourists passed
through Nome and their first and last impressions of Nome were
the toilet facilities offered at the airport and in town. It is shocking
indeed to hear the reports of these people when confronted with
these facilities. Remember — it is these people who are selling our
state and our city and when they see a town such as Nome that
has produced hundreds of millions of dollars and has only these
deplorable facilities, you can well imagine what they are telling
their friends in the lower 49. These people are potential investors
in Alaska and I am sure we all realize this and it behooves all of
us as citizens of Nome to support this most worthy project one hun
dred per cent.
I am sure that the officers of Nome Telephone Co., when they
planned, programmed and installed the dial system for Nome, had
the utmost confidence in the future of our city. Had they not this
confidence, they would not have gone to the expense of the dial
system. This system is indeed a wonderful asset and a great im
provement and benefit for all. The officers are to be commended
for their efforts for such a system. I am reasonably certain that
the voters when they voted a franchise to the Nome Telephone
Co. had faith in the future of this city. I am further certain that
every citizen of Nome well realizes that this bond election must
be approved if we are to remain as a first-class city and make
any progress.
If this system would cover the school only, it would be worth
every d' liar expended. The health and sanitary conditions at our
school are deplorable because we do not have sewer and water.
Whatever the cost may be, it is essential to the price of progress
and our health.
Nome is fast approaching the 21st Century and communities
such as Nome cannot hope to continue to exist, even at the present
social and economic level, without an adequate modern utilities
system.
It is nothing short of a miracle that all the people of Nome
have not died with such a system we now are operating; it is grossly
unsanitary, and truly most deplorable. All one needs'to do is just
walk through the halls at the school at any given hour of the day
and the odor is extremely obnoxious and despicable. The health
of our children demand this be corrected immediately if we want
to keep up our health standards and the school in operation.
I sincerely ask that you go to the polls on Jan. 22 and vote YES
for the sewer and water system. This system of sewer and water
is a nucleus that will make Nome grow. Thank you.
Udall Favors
Japanese Fishing
In Bering Sea
WASHINGTON UP) — A recom
mendation that could lead to Japan
ese development of a halibut fish
ery in the Eastern Bering Sea was
supported today by Stewart Udall,
Secretary of the Interior.
Udall said the International
North Pacific Fisheries Commis
sion had no choice but to make
such a recommendation to the
President under terms of the In
ternational North Pacific Fisheries
Convention.
The secretary’s remarks were
made in reply to a letter from Gov.
Wm. Egan. The governor said if
the recommendation is carried out
it “will forever adversely affect
the opportunity of a growing Alas
ka to participate in a fishery ad
jacent to its shores.”
After a review of the commis
sion’s action, Udall said in his
letter of Jan. 11 made public to
day, “I do not find that this de
cision was arrived at in either a
hasty or a haphazard fashion.”
“I choose to align myself on the
side of honoring our international
commitments and protecting the
sound principle of abstention.”
He said the treaty among the
United States, Canada and Japan
provides that for a stock of fish
to qualify for abstention, it must
be shown that more intensive ex
ploitation will not provide a sub
stantial increase in yield which can
be sustained.
In order for the United States to
live up to its commitments, said
Udall, “the only course left, in the
face of the record, was to recog
nize that this proof was not avail
able for Bering Sea halibut and,
therefore, that these halibut no
longer qualify for abstention.”
“If the U.S. government,” said
Udall, “fails to accept the recom
mendations of the commission, we
may very quickly find ourselves
with no protection whatsoever for
the valuable resources now almost
fully reserved for the use of the
fishermen of the United States and
Canada.”
Tax Cut Assayed
By the Associated Press
An economist forecasts an $8,
000,000,000 tax cut effective next
April would produce full employ
ment by the fiscal year beginning
July 1, 1964.
The economist, Dr. Gerhard
Colm of the National Planning
Assn., says a $6,500,000,000 slash
in personal-income levies and a
$1,500,000,000 drop in corporate
taxes would send the gross national
product soaring to $650,000,000,000
in the same time span.
It is now running about $560,
000,000,000 a year, the value placed
on the total production of goods
and services.
Hasty Firemen . . .
PROVIDENCE, R.I. (tf> — Noth
inging stops a Providence fireman
rushing to a fire unless it’s another
fireman.
Firemen Joseph Favali and Ed
win Andrade leaped for the same
brass pole in a station Sunday.
They collided head-on. Favali had
to go to a hospital, where had five
stitches to close a cut on the eye
brow. Anrade was unscathed.
THE WEATHER
Continued cloudy with snow or
rain with gusty easterly winds 15
to 25 mph. In the last 24 hours:
High of 34, low of 30. Max. wind
32 mph from the east. Sunrise at
9:36 a m., sunset at 2:47 p.m.
Kennedy Calls On Congress for Speedy
Action to Spread $13.r Tav Cut
WASHINGTON (jW — President
Kennedy called on Congress today
for speedy action to spread a $13.5
billion tax cut over three years
and to achieve in time “a balanced
full - employment economy.” Pro
posed reforms would recover $3.5
billion of the lost revenue.
Greeted by a minute and a half
standing ovation when he appeared
before members in the jammed
House chamber, Kennedy began his
State of the Union message at
12:33 p.m. and told the lawmakers
—and the nation via television and
radio—that the State of the Union '
is good: “The recession is behind j
us.”
Noting “the seeds of internal dis
integration” within the Commu
nist camp, he said “steady progress
has been made in building a world
of order.”
But the President added solemn
ly:
“We cannot be satisfied to rest
here. This is the side of the hill,
not the top. The mere absence of
war is not peace. The mere ab
sence of recession is not growth.
We have made a beginning — but
we have only begun.
Congress gave generally cautious
approval to his proposal to pump
i new energy into the economy with
a $6-billion reduction in 1963 as
a beginning on the biggest aggre
gate tax cut in history. Of the
$13.5 billion, individuals would get
$11 billion and corporations the
remainder.
Everybody, it appeared, would
like to cut taxes. But how much
and by what method remained
questions to be decided.
Kennedy tailored his proposals
to soften conservative dissent to tax
cuts with out corresponding in ex
penditures.
He promised to hold spending on
domestic programs below current
levels on the $99-billion budget to
be submitted later.
About one-fourth of the resulting
revenue losses would be recouped
through tax reforms, Kennedy said.
This lifting of the wraps from
the long-awaited tax package was
the high spot of the 4,500-word
message, in which Kennedy also:
Implied the United States and
its allies are winning the cold
war at a time when Sino-Soviet
frictions reveal “the seeds of in
ternal disintegration” in the Com
munist camp.
Challenged the Soviet Union to
make a choice between continued
conflict with the West and “the
path to peace.” The United States
is ready for either eventuality,
he declared.
Revealed the bare bones of a
legislative program which, apart
Depressed Area Funds
Go to Work In Nome
Councilman John Reader stated
that the first phase of the special
work being done with Depressed
Area funds received recently, has
been completed with 8 men work
ing on moving the old FAA recre
ation building to its new location
back of the school.
During the cold spell the men
worked inside the Nome School
doing preparatory work to the im
provements to be made this winter.
Councilman Reader state that a
maximum of 15 to 20 men will be
used on the project before it is
finished, according to present work
planned.
from taxes, ranges from the pro
posed creation of a domest’c Peace
Corps to enactment of the medi
care plan.
Kennedy described his tax pack
age as “a fiscally responsible pro
gram — tv'e surest and soundest
way of achieving in time a balanced
budget in a balanced full employ
ment economy.”
Resides calling for gradual rate
cuts, to lessen the adverse impact
on federal finances, Kennedy ad
vanced two companion proposals
that would aim in the same direc
tion :
1. The enactment of tax reforms
recouping $3 5 billion of the reve
nues that would be lost through
lower rates. Reforms would begin
going into effect next year.
2. A plan to gradually speed
quarterly tax payments by large
corporations in order to boost reve
nues by $1.5 billion without chang
ing corporate tax liabilities.
Kennedy also emphasized a de
sire for haste in congressional con
sideration of tax legislation.
‘‘Now is the time to act,” he said.
“We cannot afford to be timid or
^ slow. For this is the most urgent
task confronting the Congress in
1963.”
The President did not specify
any particular date on which he
believes the initial rate cut should
take effect. He merely said the
first reductions should come this
year.
Kennedy’s new budget, for the
1964 fiscal year starting July 1,
wil go to Congress Thursday. It
is expected to call for spending ap
proaching $99 billion.
These were among other high
lights of the message:
The Stale of the Union is good;
“the recession is behind us.”
The State of the World is im
proving; “steady progress has been
made in building a world of order.’*
At Home, Kennedy wants aid to
education; help for unemployed
youths; an expanded health pro
gram; strengthened guarantees of
voting rights; increased competi
tion and decreased regulation in
transportation; a local mass transit
program; a new farm program;
more parks and recreation area.
Taxes At a Glance
WASHINGTON UP) — Here at
a glance are the highlights of
President Kennedy’s income tax
proposals, made today in his State
of the Union message;
Individual — Reduction in rates
from present 20 to 91 per cent to
14 to G4 per cent, resulting in $11
billion annual cut, spread over
three years beginning with a $6
billion slash this year.
Corporate Taxes — Reduction
from present 52 per cent to pre
Korean 47 per cent of corporate
profits, resulting in $2.5 billion an
nual tax cut.
Reform — To offset revenue
losses by $3.5 billion, reform of
present tax law to broaden the
tax base, effective in 1964.
DOG RACES SLATED
FOR MARCH 29 and 30
At the Arctic Club board meet
ing last week it was decided to
tentatively hold the annual dog
races on Friday and Saturday,
March 29 and 30. The carnival will
be held in conjunction on Saturday
night, the 30th.