the homer keys
Alaska1s Largest Mimeograph Weekly
published every Thursday in Homer, Alaska
Bill Raver, Editor and Publisher
Dorothy Raver, Compositor
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WE’VE BEEN WORKING
ON THE RAILROAD •
Several months ago the general manager of the Alaska Ball
road, Frank Kalbaugh, told an Anchorage.audience that the ABR
made a prefit of $750,000 for the year ending June 30, 1954,
compared to $750,000 lost by the organization in the preced
ing twelve-month period* At tte time we felt that there
might be something wrong with the statement, especially after
we learned that Douglas McKay, Secretary of the Interior,
used it in stateside talks with obvious political motives.
In January we wrote to Delegate Bartlett and questioned
the profit statements* , In turn, ...the Delegate wrote to Wil
liam Strand, Director, Office of Territories, and requested
information that would answer our question*
All of the information is in and we were right in ques-'
tioning M-nager Kalbaugh*s original statement.
In the first place the Department of Interior figures show
that the ARB net income was only $719,524*65 for 1954. This
figure is $30,475.35 less than the $750,000 quoted by Kal
baugh. Perhaps to the general manager of the ABR this is a
trivial amount, but wouldn’t it have been just as easy for
him to have said that the railroad made "approximately
$720,000 in 1$54?
Secondly, Kalbaugh stated that the AHR had lost $750,.000
in 1953. According to the Department of Interior report that
we have, the ABB lost only $42,045.95 in 1953* In this case
the AJRR manager exage rated $707,954.05. Why? We think that
it was pure political propaganda and it was exploited to the
utmost by Kalbaugh here in Alaska and by the Secretary of the
Interior in public speeches in the States.
Our readers might be interested to know that in a summary
income statement of the ARB covering the years 1940^*1954, the
railroad showed losses -for only four years, 1946, 1949, 1952
and 1953. The remaining VO years of the statement indicate
that profits as high as $5,242,924.45 (less depreciation
Tfaich is running at approximately $1,500^000 per year. at .the,
present time) in 1944 have be?n made. In 1948 the AiSl had a
net profit of $2,326,855.85.
It might also interest our readers to. know that Gongress
has not made an appropriation for ARB since 1939, according
to a Strand report.
The President’s budget massage for the fiscal year 1956
contained the following regarding ABR:
"A net operating profit of $719,525 occurred in 1954. A
net operating profit of $1,974,000 is estimated for 1955, and
the same for 1956. It is anticipated that the total deficit
of $f3,373,386 as of January 30, 1954, will decrease to
$9,425,386 as of June 30, 1956."
According to Strand, $11,936,998 represents charges for
depreciation for the years prior to 1947. Until that, year,
Strand says, it was not the practice to consider depreciation
a part of operating costs, but upon adoption of the Inter
state Conanerce Commission system of accounts in 1947, provi
sion for depreciation was made in order to state more realis
tically the book values of properties* Since 1947 deprecia
tion has been charged currently. The balance of $1,436,388
represents operating deficit? for 1916-1954 not covered by
Congressional appropriations and non-fund adjustments. The
deficit will be reduced by retained earnings.
* In a note in one of Strand’s letters he adds the follow
ing sentence: "Due to the fact that prior to the authoriza
tion for the rehabilitation of the Railroad it was not pos
sible to maintain the road and track in keeping with accept
TRY THIS --
FOR COMFORT AND CONVENIENCE
OIL
FOR
HEATING
GAS
FOR
COOKING
able standards without incurring serious deficits, only min
imum maintenance requirements were met*”
3o the great Kulbaugh-McKny myth that the Republicans are
the only ones tfio ca.n make the ARR pay is dissolved# It will
be interesting to see whether or not the x-JFIR manages to show
a net profit of p.,974,000 a year for the next two years.
We have no argument in regard to the operation of the ARR
by Knlbattgh# His laying off of several hundred employees
was probably a sound move made by an experienced administra
tor. We hope that the money he saved in salaries is put back
into the railroad in the form of better equipment, roadbed,
etc# But in the future, we hope that the manager will get his
facts straight before making a public statement#
m?S JROM HALIBUT COVE
Jon Stenson of Halibut
Covo w?s a Horner visitor last
week and he reports that Carl
Berg, 83, of the Cove, suf
fered another stroke last
week and is in critical con
dition in the Seldovia hos
pital# A niece from Seattle
is with him. , ■ .
Stenson also reports that
Lee Steinberg and family are
expected to leave Afognak
about April 1 to live at the
Cove• • •
Alvin Teechner is putting
up another machine shop and
storage building in Halibut
Cove, according to Stenson#
WORKING IN ANCHORAGE .
Harry Hegdahl is working
in Anchorage for Jack Ander
son, according to Mrs*; Heg
dahl#
WORKING ON BUILDING
Jake McLey and John Kling
beil started woric this week,
erecting the walls on the Ken
Heath building next to the
Kachemak Bar*
t
LETTER TO THE EDITOR
Editor, Corner ^ews:
I just wonder which makes
the most noise,the laughs and
shouts of children at play or
the nasty crack of a rifle
that reminds you of war and
destruction.
The reason for my wonder
is the article in the Homer
News regarding a rifle range
on the fair grounds which is
near the new hdspital site.
Seems as though t heard some
one say the hospital couldn't
be built within a long dis
tance of the schoolhouse be
cause of the noise. Thatfe
why I wonder.
Sam Pratt
MOTE TRAILER IN
Mr. and Mrs.' ' Earl Day of
Anchorage have moved their
house trailer in on the Bower
property across -from the
schoolhouse. Mrs* Day is op
erating the' Hafler-Kenai Real
ty and will be commuting be
tween Anchorage and HOmer un
til school is out this Spring
CHECK FIRE HAZi'dRDS TODAY!
1
BAY CLOTHIERS SAYS.
DRESS UP FOR:
EASTER. . 'si
SPRING BONNETS
LITTLE GIRL
COAT L BONNET x
SETS
A
t
NYLON BONNETS
FOR INFANTS
L
COAT t HAT SETS
FOR BOYS
SPRING SHOES
FOR ALL THE FAMILY -
NICE ASSORTMENT OF COLORS
THESE ARE ONLY A Kfr/ OF THE
LOVELY EASTER THINGS j
YOU WILL FIND
AT ’ !
i
NEXT TO DARI-DELITE -
S/ )