THE
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
NOME, ALASKA, FRIDAY, FEBRUARY 8, 1963
Per Copy 15t
64th Year No. 17
Egan Crosses Up
GOP, Nominating
White Instead of
McLean to Senate
JUNEAU UP) — Gov. William A.
Egan today nominated Albert
White of Juneau to fill a Republi
can vacancy in the Senate. It was
rejected within minutes by the
GOP members of the upper cham
ber.
Republican rejection of the nom
ination of White, a former chair
man of the State Republican Party,
was announced by Sen. Brad Phil
lips of Anchorage.
Phillips said the four Republi
can members of the Senate who
must approve any nomination
made by Egan, were unanimous in
their opinion that White would not
be acceptable.
“While the Republican Senate
members hold high regard for A1
White as a longtime party mem
ber, we feel that the law provides
a procedure and the Republican
Party rules outline how such va
cancies are to be filled.
“This procedure was followed by
the Republican party.
“Futhermore, Gov. Egan did not
have the courtesy to discuss his
appointment even when it con
flicted with the name submitted
by the Republican party.
“Therefore, we have taken this
action in unanimous support of our
party’s position.”
The other Republicans in the
Senate are Sens. John Butrovich
of Fairbanks, John Coghill of Ne
nana and Vance Phillips of Moun
tain View.
The appointment came as a sur
prise.
Southeast Republicans had sub
mitted only one name to Egan for
the vacancy, created last week by
the death of Sen. Elton Engstrom
of Juneau.
The name submitted by South
east Republicans was that of Jo
seph McLean, a Juneau attorney
and former member of the terri
torial House of Represenatives.
White’s name had not even been
submitted to the Republican or
ganization in the Panhandle for
consideration.
Under state law, Egan is not re
quired to follow the wishes of the
party in which a legislative va
cancy occurs, but only is required
to select a bona fide qualified
member of the party.
The law provides that the gov
ernor shall have 30 days in which
to make the appointment.
White, long active in GOP af
fairs and a resident of Juneau for
40 years, was a Republican nomi
nee for Delegate to Congress in
1938.
He is an attorney and is engaged
in the real estate business.
In submitting White’s name,
Egan said:
“In so doing, I have selected
the man from the late Sen. Eng
strom’s district who has held more
honors from his party than any
other living Alaskan and who to
this day is a tireless worker in be
half of his party.”
4-Mill Tax Provided For
Support of Public Schools
JUNEAU VPl — A four-mill tax
rate would be required under the
equal tax effort provision of the
Public School Foundation Act of
1962 under terms of a bill intro
duced in the Senate today.
The measure was introduced by
the Senate Rules Committee at the
request of Gov. Egan.
Measure Introduced To
Lower State Individual
And Corporation Taxes
JUNEAU — Bills reducing
state individual and corporation
income taxes and repealing the
state business license tax were in
troduced in the House today.
Sixteen Republican names were
on a bill cutting individual net
income taxes to 14 per cent of
what a person pays in federal in
come taxes and corporation taxes
to 16 per cent of the federal tax.
Under the present law, an in
dividual pays 16 per cent of his
federal income tax bill and cor
poration 18 per cent.
Republicans Disagree
With JFK’s Evaluation
Of Russians in Cuba
WASHINGTON W — President
Kennedy’s contention that 6,000
rocket - equipped Soviet combat
troops in Cuba do not represent a
military threat to the hemisphere
met with some dissent in Congress
today.
But there was general agreement
with his statement at yesterday’s
news conference that any Soviet
attempt to reactivate offensive
missiles on the island would “pro
duce the greatest crisis which the
world has faced in history.”
Sen. Kenneth Keating, who has
contended the Kennedy adminis
tration has failed to keep the peo
ple abreast of developments, stuck
to his position that the Soviet
buildup poses a threat directed
primarily toward Latin America.
“They may be used to maintain
some sort of control within Cuba,
but obviously they are not a force
that can be used externally.” he
said. “And in addition, Cuba can
not possibly launch any amphi
bious equipment and, quite ob
viously, our power in that area is
overwhelming.”
Keating said he agrees with the
President that the Soviet military
strength in Cuba does not repre
sent any threat of invasion of the
United States. But he added he
doesn’t agree with the distinction
made by the administration be
tween defensive and offensive
weapons.
Neither did Sen. Barry Gold
water, an Air Force Reserve major
general. Goldwater said that “If
the President can’t realize there
can be other threats than missiles,
he needs some new advisers.”
$300,000 Worth of Jewels
Stolen In New York City
NEW YORK —A diamond of
exceptional quality, first identified
as the Tiffany Diamond, and other
jewels with an over-all value of
close to $300,000 were stolen dur
ing the night from the hotel apart
ment of Irene Selznick, theatrical
producer.
The large, emerald cut diamond,
displayed at the New York World
Fair in 1939, was set in a ring in
sured for $130,000.
Police called the theft an inside
job. They said the door in the
Hotel Pierre apartment apparently
had been opened with a celluloid
strip to press back the lock.
Mrs. Selznick, 54, is the former
Irene Gladys Mayer, daughter of
Louis B. Mayer, motion picture
magnate.
22 Lobbyists Register
JUNEAU W)—The State Depart
ment of Administration said today
that 22 lobbyists have registered
with the agency in connection with
the current legislative session.
Haze J. Bergeron of Juneau was
the first to register, as lobbyist for
the Alaska Education Assn.
JFK Gives Russia
Blunt Warning
BY FRANK CORMIER
WASHINGTON iM— President
Kennedy has bluntly warned the
Soviet Union that if it ever again
sets up offensive weapons in Cuba
the United States will know it and
will be prepared for history’s
greatest crisis.
The risks in such a situation
would be so alarming, Kennedy
told his news conference yesterday,
that he believes “the Soviet Union
will proceed with caution and
care.”
And the President said the same
goes for the United States, which
he said must not be stampeded into
rash action on the basis of rumor
and hearsay concerning Soviet
strength in Cuba.
Kennedy’s remarks, delivered
with obvious feeling, represented
a blast aimed at two targets:
1. At the Kremlin leaders who
continue to keep a formidable sup
ply of short-range arms in Cuba.
2. At administration critics, in
and out of Congress, who suggest
that U.S. intelligence may be over
looking ominous stocks of Soviet
missiles in Cuba.
Kennedy voiced full confidence
that such secret stockpiles do not
exist. But he readily conceded he
could be wrong. ,
He said, “We cannot prove that
there is not a missile in a cave or
that the Soviet Union isn’t goinj
to ship next week. We preparec
for that. But we will find then
when they do, and when they do
the Soviet Union and Cuba anc
the United States must all b<
aware that this will produce th<
gravest crisis which the world has
faced in its history.”
In his spirited defense of the
administration’s Cuban intelligence
program, Kennedy appeared angry
—even bitter—about the conduct
of certain critics in Congress.
While saying the government wel
comes reports of Soviet moves in
the Caribbean, the President de
clared:
“We have to move with hard in
telligence. We have to know what
we are talking about. We cannot
base the issue of war and peace
on a rumor or report which is not
substantiated, or which some mem
ber of Congress refuses to tell
where he heard it.”
Nevada Nuclear Tests Resumed
WASHINGTON UB — Under
ground nuclear tests were resumed
at the Nevada Proving Grounds
today.
The Atomic Energy Commission
described the shots as in the inter
mediate range, the explosive equi
valent of something between 20,000
and 1 million tons of TNT.
House Resolves to Direct
Study For Expanding
Legislative Chambers
JUNEAU (J1) — A request for a
study on the need for remodeling
or expanding the legislative cham
bers in the state capitol touched
off a minor flurry in the House
today.
The resolution directs the Legis
lative Council to conduct the study
and report on the “feasibility and
cost of any remodeling and expan
sion of existing facilities or of new
construction.”
It noted that the legislature is
now occupying space which “was
obviously inadequate 20 years
ago.”
The measure passed on a voice
vote after the House refused to
adopt an amendment which would
strike the words “new construc
tion.”
Space Exploration May
Lead to Drastic New
Methods of Gold Mining
DENVER UP)—Research associ
ated with space ventures may lead
to dramatic reductions in the costs
of mining gold, a resarcher told the
National Western Mining Confer
ence yesterday.
Donald Davenport of Stanford
Research Institute said the mining
industry may benefit from present
efforts to develop lunar satellite
instruments that can identify min
erals present when the space ve
hicle flies by the moon’s surface.
‘‘After NASA has perfected it for
lunar use,” Davenport said, “It
would be readily adaptable for
terrestrial applications — since
most of our requirement are not
nearly as severe.”
Davenport said by utilizing a
gold detector with high speed sort
ing techniques into the present
milling process “one could make
significant reductions in the cost
of milling.”
“Striking reductions in the cost
of gold mining” may be in the
offing, Davenport said. However,
a research and development pro
gram costing as much as $2 million
is needed.
“If our optimistic predictions
are correct,” he added, “this could
produce a ten-fold increase in our
production of gold.”
r Legislation Introduced
1 To Permit 19-Year
I Olds In Alaska
I To Buy Drinks
JUNEAU UPl — Since 19 is the
legal age of majority in Alaska,
19-year-olds should be permitted
to buy a drink, Rep. Warren Tay
lor of Fairbanks, said today.
Taylor is the author of a bill
which would lower the minimum
age for the purchase or consump
tion of alcoholic beverages from
21 to 19.
“Our constitution says that the
majority age is 19,” Taylor said.
“At that age, a person has the
right to vote and it is presumed
that he has reached the age of
maturity and should be entitled to
indulge in the same pursuits and
pleasures of any other person.
“In my experience I have found
that practically every day three or
four persons 19 and 20 years of
age get their names on criminal
dockets by reason of having liquor
in their possession or going into
a place where liquor is sold.
“In some instances, maybe their
only reason for entry is to use the
telephone, or to go to the men’s
room, or to meet a friend.
Beer is sold ireely on military
reservations to young men of 19 or
20 who are serving in the armed
forces, but as soon as they step
off the reservation, what they can
do legally on the post becomes an
illegal act off the post.”
Taylor said he felt enactment cf
his bill would actually decrease
drinking among young people in
the 19 to 21 age bracket.
At. Ft. Richardson, a spokesman
for the Army said regulations spe
cifically forbid serving alcoholic
beverages to anyone under 21. All
clubs and concessions on Army
posts that serve alcoholic beverages
must be sure their customers are
of legal age, he said.
However, the spokesmon stated,
most posts have beverage shops
which serve a beer of less than
3.2 per cent alcoholic content and
federal laws define an alcoholic
beverage as one with alcohol con
tent greater than 3.2 per cent.
Consulting Firm
Outlines Economic
Develoment Plans
For N.W. Alaska
JUNEAU W—Representatives of
an eastern consulting firm outlined
for members of the legislature’s Ice
Bloc plans for two economic devel
opment studies in the western por
tion of the state.
David Clinkenbeard, Warren
Seulowitz and Lloyd Gonyea of the
Arthur D. Little Co. told the ice
bloc at least one large Japanese
firm is interested in sea lion meat
which could be harvested in the
Aleutians.
The meat, Clinkenbeard said,
would be used for human con
sumption in Japan. He said there
is also interest in the animals as
a source of pet food.
Rep. Art Harris of Nikolski Vil
lage, said such a project would not
only result in payrolls for the Al
eution area but would also mean
reduction in numbers of an animal
which preys heavily upon the
state’s salmon and halibut re
sources.
The Arthur D. Little Co. is con
ducting the sea lion study and a
study of the economic possibilities
of the reindeer herds of North
western Alaska under a $98,000
contract with the BIA.
Coupled with the reindeer study,
Clinkenbeard told the ice bloc will
. be consideration of the economic
possibilities of markets for shee
fish.
“The reindeer study involves a
wide range of problems,” Clinken
beard said.
“We’ve got to know if people
will eat reindeer meat if it is avail
able to them in areas outside of
Alaska, as well as know if the*
native people of the northwest
really want to develop a reindeer
industry.”
Clinkenbeard said his company’s
study would cover every facet of
the problem, including questions
of transportation, distribution and
marketing.
Rep. Bob Blodgett said there
were some indications of price-fix
ing by the Bureau of Indian Af
fairs, which controls the reindeer
industry as it now exists in Alaska.
“I can get beef stew meat from
Seattle into my store at Teller,
with all of the high transportation
costs, at the same price reindeer
goes for, 45 cents a pound,” Blod
gett said.
He also said there was a great
need for a cooperative cannery in
which native workers could handle
seal oil, seal meat and native
caught fish as well as reindeer.
In response to a question from
Sen. Eben Hopson, Clinkenbeard
said the Arthur D. Little team will
also investigate the possibility of
attempting to restore the reindeer
herds in the Barrow area.
Congress will be Asked to
Raise National Debt
Limit to $320 Billion
WASHINGTON UP» — The ad
ministration will ask Congress to
raise the national debt limit to
about $320 billion, Secretary of the
Treasury Douglas Dillon said.
The present limit is $308 billion,
and will drop to $285 billion July
1 unless Congress acts before then.
The debt now is about $304 billion.
Dillon made the estimate under
questioning before the House
Ways and Means Committee in
connection with President Ken
nedy’s tax reduction and revision
program. He said the debt increase
will be asked later this year.