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Juneau, Alaska
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^OL» 19 NO. 4 KODIAK, ALASKA, JANUARY 31, 1959 PRICE 10 CENTS
Suit Started By City Of Kodiak
Against Kodiak Cold Storage Co.
The City of Kodiak has filed
suit against the Kodiak Ice &
Cold Storage Company to recover
title to the plant which was par
tially erected on the city dock.
The City had signed a lease
option agreement with Wallis
George, October 8, 1947. George,
representing the defending com
pany at that time, entered into
an agreement whereby he was to
build a cold storage plant. Con
siderable work had been done but
the plant was never completed.
The lease provided for a $500
monthly rental to begin in 90 days.
It also stipulated that substantial
stock be sold within that period.
Stock was purchased by many in
Kodiak. One clause provided an
option to purchase the property,
but the option could not be exer
eiscd unless the plant was in
operation. It never was.
Original plans for the cold
storage plant called for five mil
lion pound capacity, with facilities
for adding a second unit at a later
date.
Over a period of years, follow
ing the initial construction, which
took place in 1949, but was never
completed, Wallis George has
assured stockholders and the City
that the plant would be completed.
The suit will allow George to show
reason why the plant was never
completed and will pave the way
for other interested firms seeking
to build here.
Egan Improves
Seattle UPi. Alaska Governor
William A. Egan, reported virtual
ly out of danger Thursday, has
made further gains in recovery
from his emergency abdominal
operation nine days ago.
In Thursday morning’s medical
bulletin, Egan’s condition is listed
“as best yet.” The 44-year-old
Democratic governor is able to in
crease the frequency of his walks
around the hospital room. His
temperature remained normal for
the second day and his pulse rate
dropped.
Egan suffered complete abdomi
nal paralysis from a bowel obstruc
tion before the operation, from
which his chances for recovery
were then considered less than 50
per cent.
Tight Government Spending, Speedy
Organization, Recommended By Wade
Juneau Ufi. Acting Governor
Hugh Wade Friday called for the
speedy organization of a State
government of 15 departments and
tight government spending, in a
message to the legislature.
He steered away from a discus
sion of a budget. That should wait
Until the State government is set
up, he said.
Wade suggested two steps in
creating the State’s executive
agencies. First, he said, he would
submit a bill with 15 departments
outlined. Then, upon passage of
the bill creating a “framework”
with which to assign duties, he
v?nld issue an executive order
for assignment of functions within
the statuatory framework.
Under the constitution, Wade
said, the legislature has 60 days
within which to approve or disap
prove the executive order.
Departments Wade suggested
were administration, law, revenue,
education, health and welfare,
labor, commerce, employment sec
urity, military affairs, public
works, public safety, local govern
ment, fish and game, licenses and
natural resources.
Wade urged the legislature to
withhold judicial function from
the first Supreme Court and let
it concentrate on setting up a
judicial code. The Federal Courts
would be called upon to continue
to furnish court services until a
code could .be established.
Although Wade declined to
favor either a long session of the
legislature or a split session, he
said the split session would have
the advantage of permitting Gov.
Egan to resume active leadership.
Wade expressed concern over
Federal administration moves to
speed up the 'time schedule in the
State’s assuming several costly
activities.
Armory Accepted
After Inspection
Inspection of the new armory
prior to it being turned over to
the National Guard was made
Wednesday and Thursday of this
week, by officials of the National
Guard and the Building Construc
tion Engineers of Alaska. Accept
ance followed.
McGillivry Bros., the contract
ing firm, will continue to work on
the building, mainly on the con
struction of steps and a sidewalk
leading to the road.
Built at a cost of approximately
$215,000, the armory has been
under construction since July of
last year. Resident superintendent
for McGillivry Bros., contracting
firm, is Homer Shoesmith. He and
the firm built the armory as a
joint venture.
Inspection party included Leon
ard Lowell, representing the En
gineers; Col. Burke of the
National Guard; Mr. James Barrie
of McGillivry Bros.; Bud Forrest,
architect; Cliff Hohn, of Hohn
Plumbing and Heating; and Mr.
Anderson of the City Electric.
The latter two firms were sub
contractors.
Bill Asks Repeal
Of Business Tax
Juneau UP). The first House bill
in the new State Legislative
session was introduced Thursday.
Rep. Richard Greuel (D-Fair
banks) introduced the measure,
calling for the repeal of the
Alaska business license tax levied
on gross receipts.
Greuel said the tax discrimh
nates against businesses that
operate on high volumes and low
profit margins. He said the tax
is not an important source of
revenue for Alaska.
Youth Leadership
Judges Selected
Judges for the “Youth Leader*
ship Contest” sponsored by the
B.P.O.E. No. 1772 of Kodiak were
announced this week* by committee
chairman, Norman Dinwiddie.
The three whp: will serve as
judges are Dr. Robert Johnson,;:
Rev. John Molletti, and Cmdr;
H.C. Sterling.
About twenty entries are ex
pected from local students, accords
ing to Dinwiddie. Deadline for
filing of applications is February
L The contest will be judged
February 11.
Winners of the local contest will
automatically become entries! in
the State contest. Deadline A for
State entries is February 15. A
list of the entxie& and winners will
be announced following the judg
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ing, Dinwiddie said.
Kodiak’s Legislative Delegation
Seeks More Roads For Kodiak Area
Juneau (#). Kodiak’s three-man
legislative delegation, headed by
Sen. A1 Owen, has set out to get
more highways for the island.
With the first legislature Jess
than one week old, the three
Democrats from the Kodiak area
already have initiated efforts on
highway projects.
Owen, who has been in Juneau
since January 6 for pre-legislative
conferences with the State high
way department, says the outlook
is hopeful for funds next year for
the Ouzinkie route and improve
ments on the Afognak'road.
However, the highway depart
ment has not yet given a firm
answer on either projects.
At the same time, Owen has be
gun efforts'to have the State claim
title to a large section of land in
the Monashka Bay-Ouzihkie road
vicinity. Land now is held by the
Bureau of Land Management, but
may be open for claiming by State
Land Board.
Owen will be in a powerful
position to spark the needs of the
Kodiak area, which in the past has
been without full representation
in the territorial legislatures.
Owen, in first State Legislature,
heads the powerful Senate Finan
ces committee. :
Ren. Henry Haag, who has been
working with Owen : on the road
projects, said Kodiak has been
without any major road improve
ments since 1941', when he first
moved to the island city. Haag
will -be working on local govern
ment and State affairs committees
Bartlett Scores “Do Nothing” Policy
In Dealing With Foreign Nations
“This nation cannot afford a
government whose international
policy is to see nothing, hear noth
ing, and do nothing. Every Ameri
can military leader, every Ameri
can statesman of our generation,
acknowledges that—like it or not
—America is locked in a struggle
all over the globe with an enemy
that cannot be ignored.”
In a speech on “What Is
Security?”, that Sen. E.L. (Bob)
Bartlett will deliver before the
Women’s Forum on National
Security at Washington, D.€., to
day, he will analyse America’s
role in world policy. Bartlett
stressed the need for an informed
people on foreign policy. “The
people must think and talk foreign
policy,” he said.. “Even though
the president of the United States
is responsible for the conduct of
foreign affairs, and may not and
should not delegate his authority,”
the Senator said: “Out of the
people must come the guidelines
of policy; out of the people must
come the heart and the character
of our policy.”
Stating that we must face the
harsh realities of the world in
which we live, the Senator said
that in the eyes of some of the
people of other nations, America
seems incapable of doing the
desirable thing. “The Cubans, for
example, who protest today the
anguished interest of the American
people in the summary execution
of Cuban nationals and who tell
us that we are “interventionists,”
were, not long ago, attacking us
for our support by non-interven
tion of the regime of General
Batista. A month ago the rebels
in Cuba urged America to take a
stand against the policies of the
Cuban regime; today these same
rebels—now in power—tell us to
mind our own business.”
The spirit of idealism and faith,
as exemplified by Abraham
Lincoln, he said, is needed today.
“Our Communist foes have put on
the mantle of the crusade al
through, ironically, no world force
is more cynical and expedient than
international Communism.” He
said the only road for America to
follow is to stop trying to please
everybody all the time. “This
can’t be done,” he said. “We must
not forfeit our place in the hearts
of man by letting the Communist
imposter impersonate the cham
pion of humanity and characterize
Continued to page 4
in the legislature.
Rep. Peter Deveau. who planf
to concentrate on hopes’for a f erry
system serving the Kodiak area,
says the City has the third largest
number of automobiles license
registration in Alaska—but gets;
less than one per cent of the re
turns.
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Deveau said he would introduce
a bill for a ferry system to1 serve*
Kodiak, Bruin Bay on the penin
sula, and Eastward to Valdez amf*
Cordova. Such a \*ater route, her
predicted, would lower . freight
costs to Kodiak from $48 a ton f©
about $15 a ton.
He proposes he contraction of
ferry costing about $750,000 and
able to serve major communities
on the suggested. system, without
major dock rebuilding. t.,
He said he hoped to coordinate
the proposed Kodiak ferry with 0
similar system under consideration
for Southeastern Alaska- :
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Damage was susttffhed by sei-eraV .
vessels this past, week, -ttecesaijtai % ,
ing layups. Other activities includ
ed hauling of king' crate and
shrimp, r »V ' .,
The St. Mark, tender for PAF.
damaged her bottom and prop
when she reportedly, hit a rock at
King Cove, She wa$ loaded with
halibut from Port Williams.
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The 88 foot power skow, Baxweh
was put up on the grid at the wmal]
boat harbor. The barge apparently
hit a large submerged log as ii
was coming from Jute Bay, and
damaged the starboard prop. The
barge was skippered by John Eids,
and is from Seward. *
The Expansion came in after an
uneventful trip to the Westward.
Twenty-four hours late, the mail
boat had to lay in over night at
Belkofsky due to a prevail!®* 125
knot wind in that area.
The Expansion is on her way to
Seward, and will return her*
February 12.
&
The Tatalina is expected in
Wednesday, but may not unload
here until Thursday or Friday.
£
There’s been a little activity at
King Crab this week. Shrimp can
ning occupied two days, and crab
processing the rest of the week.
The Eldorado brought in crab,
the combined catch of three boats.
The other two were the Juno and
the Suzie Q. The Afognak brought
in crab from a number of boats
in the fishing area.
£
“Bumps’ Poland, business agent
for the ’United Fishermen of
Kodiak and the Cannery workers,
and also president pro tern eX the
. newly formed Alaska Filing
(Continued to page 5)