Library & Museum
Juneau, Alaska
V' 5»-<» t
News of oAmencas Last Frontier”
VUL. ID 16
KODIAK, ALASKA, MARCH 31, 1956
PRICE 10 Cl5biTS
Federal Trade Commission Completes Hearing Here
Union Official,
Boat Owners,
Give Testimony
The Federal Trade Commission
hearings, which have been in ses
sion in Kodiak every day since
Monday, drew to a close Wednes
day afternoon after having called
numerous witnesses and officials
of respondent groups engaged.in
the King crab industry in the Ko
diak area, to which a complaint
had been issued by the Commis
sion for engaging in unlawful prac
tices contrary to the FTC Act.
William L. Pack of Washington,
D. C. conducted the hearings for
the Commision. Fletcher Cohn was
legal advisor for the FTC, and
Duane Vance acted- in behalf of
the respondents charged in the
complaint.
Respondents in the complaint
were as follows: United Fishermen
of Alaska, Elden Lester, individu
ally, as President of UFA, and as
representative of all members of
the Union; John Anderson, indi
vidually, as Vice-President of the
UFA; P. J. Kerrigan, individually,
as Sec.-Treas. of UFA, and as rep
resentative of all members of said
Union; Charles Warren, Russell
Attwood and Alfred Levine, indi
vmuaiiy, as members of the Execu
tive Board of. United Fishermen of
Alaska, and as representative of
all members of said Union; Kodiak
Fish Producers Association; W. A.
Cannon, Dal Valley, Barney Corga
telli, Jack Warren, A. J. Cichoski,
Ray Heinrichs and Thomas Clamp
ffer, individually, as Directors of
KFPA, and as representative of
all members of the Association;
Island Seafoods, Inc.; King Crab,
Inc., Walter Muller and Mildred D.
Muller, individually and as part
ners doing business under the
trade name of Kodiak Sea Foods
Packing Company.
The Commission charged the
above individuals, groups and
firms in the original complaint as
having violated Section 5 of the
Federal Trade Commission Act,
which reads in part: “Unfair meth
ods of competition in commerce,
and unfair or deceptive acts or
practices in commerce, are hereby
declared unlawful.”
The Commission specifically
charged the respondents with “fix
ing and maintaining, the minimum
prices at which all raw or fresh
King crab and King crab meat
caught are bought and sold.” The
Union was charged with entering
into “annual contracts with each
respondent canners wherein and
whereby were fixed, established,
and maintained minimum prices
which each of said Canners should
pay.” The complaint further charg
ed the Cooperative of employing
means, including intimidation and
threats of violence, to compel non
member fishermen not to sell to
any purchaser who will not pay
the price fixed by the agreement
of the Union and the Cooperative.
Blacklisting, it was charged, was a
means used to prevent fishermen
from working as cannery workers
in canneries not paying the mini
mum price.
The hearings, which were con
ducted in the Union hall evinced
considerable interest among the
fishermen. The complaint was is
sued June 27, 1955. Hearings were
scheduled for the following Sep
tember, but were postponed. When
the order to cease and desist was
issued, the canneries complied and
filed an answer, and thus were not
involved in the present hearing.
The hearings held in Seattle the
week prior to the session in Ko
diak, processed testimony of gov
ernment witnesses mainly. Lowell
and Howard Wakefield, Lloyd
Powell, Pete Deveau, Don Bing
ham and Kenny Woods testified
in Seattle.
Among witnesses heard here were
Alfred Nelson, Lefty and Jean Al
ho, Lloyd Cannon, Cory Kaldestad,
Pat Mullan, P. J. Kerrigan, A1
(Cowboy) Syling, Sue McAllister,
Hiram McAllister, Bruce Cole, El
don Lester, “Tiny’' Cichoski, A1
Levine, Ralph Jones and others.
Fletcher Cohn, Legal Advisor
for the Commission, sought to es
tablish collusion between officials
of the Cooperative and the Union
in establishing the price of crab.
He constantly interrupted testi
mony of witnesses as irrelevant
and immaterial. He objected to
testimony by respondent witnesses
as to conversations they had had
with government witnesses who
had appeared before the hearings
in Seattle.
P. J. Kerrigan, Secretary-Treas
urer of the Union, in his testimony
stated he has held that office for
more than 9 years. He testified as
to the authenticity of the minutes
submitted as exhibits. These min
utes dealt mainly with the sever
ng of relatons between the boat
owners in the Coop and the Union,
the resignations of boat owners as
officials in the Union, and the fill
ing of these offices with Union
members. He held that the Union
was in its right to carry on bargain
ing negotiations with Canneries. A
verbal tussel occurred, which be
came quite heated, between him
and Cohn when the latter voiced
seemingly derogatory comments as
to the minutes.
“Tiny” Cichoski's method of giv
ing testimony was also the subject
of a controversy in which Cohn at
tempted to have it given in the
usual question and answer manner.
The Examiner rulel in favor of
the witness. Cichoski’s opening
statement, "I believe in the inter
est of justice I should tell in my
own words what has happened in
the crab industry leading up to the
present hearing. He then gave an
account of its early beginnings,
the methods and gear used. He
stated he was one of the organizers
of the Coop. When the dispute
arose with Wakefield Cnneries he
stated he went to Port Wakefield
to talk to Howard Wakefield as a
personal friend, not as an official
Friendly relations he had previ
only had, he said broke down at
that meeting.
The testimony of Ralph Jones,
Production Manager for Wake
fields, was the final witness call
(Continued to Page 4)
Pla le Evacuates
2 Year Old Cnild
Despite darkness and snow, Ko
diak Airways answered a plea for
help ffom a remote Island village
Monday evening.
A call was received from Lar
sen’s Bay at seven p. m. requesting
a plane to pick up little Stella
June Aga for emergency medical
attention.
Ray Albrecht, pilot for the Ko
diak Airways, had just landed af
ter completing a flight, but took
off at 7:15. Andrew Chokwok, an
other Airways employee, accom
panied him.
Upon arrival of the plane at
Larsen’s Bay, Stella June, 2 year
old daughter of Charley and Al
berta Aga, was taken aboard im
mediately.
When they reached Kodiak, the
child was rushed to Griffin Mem
orial Hospital where she was giv
en treatment by Dr. A Holmes and
Dr. Bob Johnson.
Mr. Aga, who accompanied Stel
la June on the flight, told of the
parents worry and fright because
the baby’s high fever and nasal
hemorrhage. He reports her con
dition as good at present, although
she will be confined to the hospital
for at least a few more days.
Aga expressed his gratitude for
the prompt action taken by the
Kodiak Airways, and told of the
snow squalls encountered during
the trip.
REPUBLICANS MEET
A group of Republicans met at
the home of Mr. and Mrs. Jack
Hinckel last Wednesday evening.
No action was taken. A meeting
is planned in the near future for
the purpose of election of officers
and organizing.
SENATE BILL REMOVES TAX
Washington CAP). The Senate
passed a bill to remove the 10 per
cent travel tax to Alaska and it
now goes to conference. This bill
also removes the tax on travel to
the Caribbean area. Central Amer
ica, Hawaii, and many points in
Mexico and Canada. The House
passed a different version.
The Senate version provides that
the levy be removed from only
portions of the trip from last stop
ping point on the West Coast to
Alaska and Hawaii.
Juneau (AP). Judge Hodge dis
missed a suit by a taxpayer which
sought to prevent the territory
from spending public funds in the
transportation of pupils of non
public or sectarian schools.
The suit was filed by Woodrow
Reynolds, Douglas fisherman, “on
behalf of himself and all other tax
payers similarly situated.” Rey
nolds challenged the validity of
the territorial law, arguing that it
violated the Organic Act, and the
1st, 5th and 14th amendments of
the U. S. Constitution.
The Territory asked dismissal of
the suit on the grounds Reynolds
failed to show injury not suffered
in common with the general pub
lic.
NO DEFINITE DATE
TOR KEFAUVER VISIT
The Kodiak Democratic Club
held their regular meeting Tues
day March 28 at the Elk’s Hall
with about forty persons in attend
ance. It was announced that no
definite date had been announced
for the expected visit of Sen. Estes
Kefauver, but that he should ar
rive in Kodiak early in April.
Mr. Jules Radinsky brought up
for discussion whether Del. Rob
Bartlett could run for both dele
gate and senator under the Tenne
sse Plan. Jack Hinckel was asked
to clarify this question and stat
ed that his interpretation of the
matter was that Mr. Bartlett could
be both senator and delegate.
Following the meeting Alf Mad
sen showed movies of some of his
big game hunts.
Physio-Therapist
Administers Aid
Dave Morriss, Physio-Therapist,
arrived from Anchorage Tuesday,
and conducted a one-day clinic at
the Elks Club Wednesday. He ex
amined several patients while here.
He is a cerebral palsy specialist
and his visit was sponsored by the
Elks organization.
The therapist is employed by the
Terirtorial Elks Association out of
funds raised in the Cerebral Palsy
drive. He administers treatment to
victims of cerebral palsy in the 3rd
and 4th divisions, in the Fairbanks,
Anchorage and Kodiak areas.
Treatment is arranged for vic
tims of cerebral palsy by the Alas
ka Department of Health and at
the suggestion of local physicians.
Morris is expected back here in
about two weeks time and he plans
every two weeks thereafter, if
there is a necessity.
1956 TO BE BIG YEAR
IN DEFENSE CONSTRUCTION
The Alaska District Corps of
Engineers estimates $110,060,000
will be placed in defense construc
tion work for the U. S. Army and
Air Force in widely scattered
sites throughout the Territory dur
ing the calender year of 1956. This
includes work on contracts now in
progress and others to be awarded.
More than $80,000,000 is schedul
ed for the Air Force. The balance
is for the Army. Some sites are
not listed for security reasons.
Broken down by locations, the
proposed placement for the Air
Air Force includes remote instal
lations as well as major Air Force
Bases: Elmendorf, $20,141,00; Eiel
son, $6,352,000; Ladd $9,105,000;
Galena, $7,220,00; King Salmon,
$4,983,000; Bethel, $5,139,000;
Chiniak, $2,391,000; Fort Yukon,
$3,291,000; Gulkana $3,291,000;
Homer, $2,249,000; Indian Moun
tain, $1,573,000; Kotzebue, $3,862,
000; Middleton Island $549,000;
Sitkinak, $5,497,000; Sparrevohn,
$1,902,000; Unalakleet, $4,600,000;
Aircraft Control & Warning sta
tions, $460,000; other Air Force,
$419,000. Total $80,310,000.
Along The
Waterfront
This was a busy week for boat
owners and fishermen. Water traf
fic was light generally, with the
intermittent snow flurries and bad
weather holding many of them •
back. But the three day hearing
of the Federal Trade Commission
held here kept some of them busy /
answering questions, anyway. 1
Pete Deveau of the Island Sen
foods reports little activity. Coogan •
Peterson at the helm of the Oran'- |
us brought in 16,00 pounds of crab. ’
We reported the Suzie Q oh her
way in last week. She arrived Sat
urday with 23,000 pounds.
The Eldordo came in yesterday i
with a load totaling 28,000 pounds :
Louie Wick is the skipper. The
Reliance is said to be due in today
with an estimated load of 30,000
pounds.
We have it from Charlie Christ I
offerson of Halferty’s Cannery, the ’
company boat, the Yarsh, left Se- -1
attle March 28 with supplies for
the local cannery. George Howland
is the skipper. Frank McConaghy,
general manager, expects to leave
for Kodiak Tuesday. Nick Spano ;
vitch is reported to be accompany- i
ing him. {
Sunshine and good weather js
making Pete Olsen eager to get t*,
the crab fishing grounds. He has'
his boat the Parks No. 11 at A3- f
vine and Gibson for repair, anil
Stan and the crew are doing afl j
they can to get her in the water.'
Alf Madsen wasn’t so sure if be
was going to get his boat painted
in time for the hunting season, bul
it looks like he has an even chance
now. The work on the Explorer is
completed, and she is back in the
water. The Polaris is up out of the
water, and with a little break i»
the weather should be completed
soon.
Bill (blue-eyed) Anderson, nam
ed as such to distinguish him from
the several other Bill Andersens
in the vicinity, suffered consider
able loss when his boat the Sunset
caught fire following an explosion.,
as reported elsewhere. The othei
crew member, who was not men
tioned in the article, was George
Torgramson.
King Crab, Inc. reports consider
able activity, with some nice cateb
es brought in. One boat even
brought in two loads. The Left
Cape with Sergie Pestrikoff had
a small load totaling 216 crab for
a total of 2677 pounds.
A fine load of crab was brought
in by Cory Karlestadt this week
He docked his Totem and unloaded
4700 crab weighing 44,714 pounds
Ernest Graves with the Lois had
3341 crab weighing 21,614 pounds.
John Ketelikoff was perhaps the
low man on the mast this week
His Seamount brought in 99 crab
for a total weight of 982 pounds
The Roxanna Dawn with Pat Mul
len s skipper had 1246 crab weigh
ing 16,192 pounds. Mike Mullens
docked his Tonki Cape with 814
crab weighing 10,582 pounds. A
(Continued on Page 12) 1