Ubrary (y Museum
Juneau, Alaska
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m 18 NO. 43
KODIAK, ALASKA, OCTOBER 25, 1958
PRICE 10 CENT?
Kg Oil Revene is Predieted Here;
Forecast $26 Million for Alaska in 1963
Oil and gas leases revenues
reaching as high as 26% million
dollars in one year have been fore
cast for Alaska.
M.O. Allen, lands and mineral
officer for the Bureau of Land
Management at Juneau, told the
Alaska legislative council Satur
day that lease rentals in 1959 were
expected to be about 9% million
dollars.
The revenues, not including
royalties from any producing
wells, should increase to 13%
millron dollars in 1960 and be up
to 26% million in 1963, Allen said.
The new state, as the territory
has in the past, will receive 90
per cent of the rentals paid on
oil and gas leases on federal lands.
Since July of last year applica
tions have been filed for more
than 33% million acres of Alaska,
and about 16 million acrevs of
lenses have been processed.
Total Alaska receipts so far
from the leases, spurred by the
Bhthfield Oil Co. strike on the
Xenai Peninsula 15 months ago,
lave totaled about 4% million
dollars
Other witnesses appearing be
tore the council, indicated that
Alaska would need all the oil
revenue it can get.
. Budget Director Richard Freer
said Alaska agencies already have
saimitted appropriation requests
totaling $33,100,135 for the first
foil year of operation as a state.
The requests almost equal the
total appropriation for the 1857-59
biennium.
FVeer put anticipated revenue
tor the 1959-60 fiscal year, not in
cluding gas and oil receipts, at
$224X50,314, and said it appeared
there would be a 4*£ million
dollar surplus in the general fund
next June 30.
The end of the next fiscal year
m June will mark the close of
Alaska’s biennium budget opera
ASC Lowers Tariff
Or Crib Shipping
New tariffs, effective November
9, bring substantial savings to
skippers under Alaska Steamship
Company,s container program, it
was announced today.
“Reductions in terminal and
ocean charges of about $3.00 a
Ion are applicable on ‘unitized’
cargo, R. C. Rose, line traffic
manager said.
Savings on Seattle terminal
charges are about. $1.00 a ton for
freight N.O.S. and grocery items
shipped in Alaska Steamship
Company sealed cribs or strapped
on shippers pallets.
‘Together these, and reductions,
already allowed on unitized cargo
at certain Alaska ports, develop a
range of savings up to $2.20 a ton
«n terminal charges alone,” Rose
said.
The new ocean tariffs provide
it $2.00 a ton reduced rate on
(Continued to page 12)
tions. The first state Legislature,
scheduled to meet in January, will
make appropriations on an annual
basis.
Tax Commissioner Robert
Stevenson told the council new
revenue will be needed to replace
expected loss of about $337,000
that comes in annually from fish
trap license fees. He forecast possi
ble increases in gear licenses and
resident and non-resident fishing
licenses.
Traps, long controversial in
Alaska, seem destined for elimina
tion when the territory moves into
statehood next year.
Both major political parties
have promised all necessary action
to ban the traps, if possible even
before Alaska fully assumes con
trol of its fisheries from the U.S.
Fish and Wildlife Service.
Stevenson told members of the
Legislature’s interim study com
mittee the tax department was
seeking other revenue to replace
that lost when the traps go out.
The best bet, he said, would
appear to be in an increase in
gear license. Added revenue possi
bilities also appeared in a boost
in resident and non-resident
licenses, he said.
Two officials of a company hir
ed by the territory for studies on
government reorganization drew
the fire of council members.
The lawmakers asked Robert
Stover and Mike Morris, repre
sentatives of the Public Adminis
tration Service, for a report on the
firms progress.
Stover said PAS was working
on personnel classification and pay
plans, transitional problems in
volved in assuming federal func
tions, and retirement proposals
for state workers.
But he said the findings would
not be released until completed—
possibly in mid-December.
District Deputy
Party on Tonight
Russ Painter, District Deputy
Alaska West, B.P.O.E., was in
attendance at the lodge session of
the Elks here last night, and spoke
to the group assembled.
The Elks official is here on a
regular visitation. He is accom
panied by Mrs. Painter. Both are
from Seward.
A steak dinner and party after
wards is being staged at the Elks
tonight, in honor of the District
Deputy and his wife. Dinner will
be served from 6 to 9 p.m. Danc
ing will follow.
Eldon Lester, Exalted Ruler of
the lodge, called attention this
week to the annual roll call night
of the organization, which will be
held next Friday. He urged all
lodge members, whether visiting
members or affiliated with 1772, to
be on hand for the roll call or if
unable to attend, write in to the
secretary.
Nuclear Power
By Candlelight
City electrical failed late Sun
day during a meeting of the Alaska
Legislative Council.
The lawmakers resorted to
candle power to provide light for
the next witness, Dr. Wildon J,
Frank of the University of Cali
fornia Radiation Laboratory.
His topic: Nuclear Power in
Alaska.
Excavate Harbors
Dr. Frank told the interim com
mittee of the legislature that
nuclear power could be used for
excavating and constructing har
bors in Alaska.
The Atomic Energy Commission,
he said, was particularly interest
ed in Alaska because development
was needed and the new state
offered sparsely settled areas
where demonstrations could be
conducted.
A EC survey teams already have
made field inspections in Alaska.
The agency said it was planning
nuclear excavation of a harbor
north of the Bering Strait, with
the big blast probably being
scheduled for 1960.
POLIO CLINIC NEXT SAT.
A polio clinic will be conducted
at the Health Center next Satur
day morning Shots will be avail
able from 10 a.m. to 11 a.m.
Landlords Seek
Equal Allowance
A case for the private rental
landlord in Kodiak was presented
before the Legislative Council in
it ssession Monday, by Carl Huer,
president of the Residential Prop
erty Owners Association
Huer outlined the difficulties of
owners in Kodiak in meeting what
he termed “unfair competition”
from the government-owned Aleu
tan Homes. He pointed out a $3.70
per day allowance is given service
personnel who live in a project
home. $1.25 is allowed those who
live in privately owned homes.
He said his organization sought
an equal allowance.
Cmdr. L. O. Lynch, legal officer
on the Naval Station, was called in
to present the other side of the
story. He stated the schedule of
allowances was set up in Wash
ington, D. C. by an Armed Ser
vices Board, from information
compiled here in a yearly survey.
The allowances, he said, are based
on costs to the serviceman, out
lined in the annual questionnaire.
The questionnaire reflects higher
utilities and other costs for per
sonnel living in the project homes.
When a council member sug
gested that stirring up the issue
might impose unfavorable reac
tions among the Armed Services,
Huer replied: “I’m going bank
rupt anyway, as it is, unless some
thing is done about it.”
Protect Investors, Say SEC Officials;
"Blue Sky’ Legislation Needed
Two officials of the Securities
Exchange Commission warned that
Alaska offered ripe ground for
unscrupulous stock promoters
seeking a financial harvest from
interest that has developed in
the 49th state.
The testimony was given the
Alaska legislative council by
James E. Newton, regional ad
ministrator of the SEC, and Forbes
Webber, an attorney for the
agency.
The two SEC officials from
Washington advised the interim
committee of the Alaska Legisla
ture to seek creation of a state
securities commissioner and at
torney to control stock promotions
in the new state.
Louis Loss, a Harvard University
law student professor and author
of “Blue Sky” legislation for
states, urged enactment of mea
sures to protect investors—both
inside and outside of Alaska—on
promotions dealing with Alaska
ventures.
Death Comes to
Pryce Harriman
Pryce Bunnell Harriman, a resi
dent of Kodiak for the past eight
years, died Thursday morning, fol
lowing a short illness.
Harriman was a pianist of ex
ceptional calibre, and came here
for an engagement at the Town
Club in 1946. He has since played
at the Montmartre, the Casino and
the Mecca Lounge and elsewhere.
Harriman was born April 6,
1920. His father and mother re
side in Port Angeles, Wash. The
elder Harriman is a retired cus
toms agent. His sister, Mrs. Ar
dythe La Belle is also of Port
Angeles. An uncle, John N. Hand
man, a vice admiral (retired),
lives in Suthersville, Maryland. A
daughter, Faune, lives in the
States.
Plan Paving Job
For Next Summer
The Bureau of Public Roads is
seeking the lease of the Navy pav
ing plant, in a plan to pave the
new Base-Town road next year.
This was learned in a report of a
meeting of the Base-Town com
mittee, at the Chamber of Com
merce meeting Thursday.
Navy officials suggested the
proposed paving in Kodiak be
worked out so the two projects
could be completed about the same
time, without tying up the equip
ment for too long a period of
time.
Other matters to come before
the committee were that of a com
plaint that liquor was being sold
(Continued to page 12)
Along The
Waterfront
The heavy winds which prevail
ed for a number of days over the
weekend, took their toll as usuas.
An inkling of the force of th*
gusts was seen when about 6 a.n,
Saturday morning, a huge section
of the roo' of Halferty’s Cannery
was carried away in one piece
fortunately out into the channel
Tiny Ciehoski’s boat was damaged
when $ timber went through the
decking..
The winds which blew about 6t
m.p.h. most of the time, were bad
enough, but quite frequent gust
of more than 100 m.p.h. did the
damage. A skiff tied up ta a
float in the small boat harbor wa,‘
picked up,, outboard and all, and
hurled across to the other side
of the float
City Manager Poland described
the action of the wind in the bar
bor as resembling a williwa. Criti
cism of the small boat harbor is
unjustifed, he said, as the harbor
was not designed with the idee
of such winds in mind. The poles,
he said, that suffered the damage,
were placed properly and ac
cording to specifications.
NO CLASH AT MEETING
INTERNX. FISHERIES COM.
TOKYO CW—Executive Director
Roy Jackson of the Internationa}
North Pacific Fisheries Commis
sion denied any likelhood of a
clash between Japan and thi
North Aiherican fishing interests
over Hhe location of the salmon
boundary, He said: “There is no
concern -on the subject at all.”
The Japanese press had report
ed sharp disagreement, claiming
the West wants the border push
ed Westward. The commissions
biology and research committee
is holding closed sessions.
The 11-man biology and re
search committee is one of the
commission’s four committees that
will hold sessions before the open
iag of tinrplenary sessions Nov. 4'
at Tokyo
The committee win receive
U. S., Canadian and Japanese re
suite of research during the past
year. This research material, a
commission offical said, consists
of “scientifc evidence on the dis
tribution and continental origin of
salmon on the high seas and in
formation on the movement of sal
mon schools on the high seas.”
U. S. and Canada claim that the
Asiatic and North American sal
mon can he distinguished, but the
Japanese claim research had fail
ed to produce any such conclu
sion.
&
FWS SEEKS REGISTRATION
OF CRAB, SHRIMP FISHERMEN
The Bureau of Commercial
Fisheries office in Kodiak re
quests that all crab and shrimp
fishermen have their gear regis
tered 'toy Friday, November 14,
1958.
They point out that Sec. 102.2
of the 1958 ”Laws and Regulations v
for Protecting of the Commercial
Fisheries of Alaska” requires all
(Continued to page 12)