Mr. CHENOWETH. What is the total value of the mining output of Alaska? Mr. GLOVER. I cannot give you that figure. Mr. CHENOWETH. Do you have any idea what it would be in recent years? Mr. GLOVER. I would guess somewhere around 20 million, and largely based on gold. Mr. CHENOWETH. Gold? Mr. GLOVER. Yes. That is practically the only thing produced in Alaska. There is no other base metal production substantial. There is a little tin. It is because these companies cannot see a profit in Alaska operations, which are roughly 30 percent higher than stateside. Mr. CHENOWETH. If the Gold Act should be amended so they can compete in the world market, would that increase the gold operations? Mr. GLOVER. Perhaps it would. For the future well-being of Alaska and the Nation, I would say the incentives must be across the board to encourage base metal mining-copper, lead, and so forth. Mr. CHENOWETH. I have gold operations in my district in the Cripple Creek region. So I know a little bit about the problems of the gold industry. Mr. GLOVER. I appreciate your interest in mining and I think you appreciate some of our problems. Mr. CHENOWETH. That is all. Mrs. PrOST. Do you have any lead-zinc operations in Alaska? Mr. GLOVER. We have no operations, ma'am, but we do have prospects, and they will remain prospects until some incentive to explore those and find out whether they might be mined. Mrs. Prost. We are looking for incentives in Idaho, too. We do have some lead-zinc operations there, however. In fact, I have introduced a mine incentives payment bill, but I was unable to get favorable action on it in the Congress. Mr. GLOVER. I believe there is nothing novel on these proposals of tax exemptions. The Mining Congress of the United States and every mining organization has been asking that for years. Mr. CHENOWETH. We heard something about this property tax which was levied in Alaska, which I understand was opposed by the mining industry. Could you tell us briefly about that? Mr. GLOVER. I am glad you raised that point, Mr. Chenoweth. One thing I hope you will consider-you say it was opposed by the mining industry. Mr. CHENOWETH. We heard that, among other groups. Mr. GLOVER. Was it opposed by the mining industry or was it opposed by the Alaska Miners Association, which frankly is an absentee group with offices in Seattle? It represents 3 or 4 main gold-placer producers in Alaska. It really doesn't represent the mining industry, although it is the voice. Mr. CHENOWETH. Do you feel that law was objectionable to large segments of your mining industry? Mr. GLOVER. I don't know which phase you are referring to. Mr. GLOVER. There were certain objectionable features in that, yes. Mr. CHENOWETH. Which the mining industry objects to? Mr. CHENOWETH. That is all. Mr. BARTLETT. What is your position with the department of mining? Mr. GLOVER. My title is engineer-assayer. I am a mineralogist and a little of everything. Mr. BARTLETT. And your local address? Mr. GLOVER. Ketchikan, box 1408. Mr. BARTLETT. Thank you very much. Mr. Evans, will you identify yourself? STATEMENT OF TOM EVANS, KETCHIKAN, ALASKA Mr. EVANS. Tom Evans. I am in the transportation business and have been a resident of Ketchikan for the last 2 years, although I have been in the Territory since 1943. I am primarily interested in transportation but would like to touch on fishing and elaborate a little bit on what has been said already. I have no facts myself. I can't give you facts. I have been in the transportation business hauling freight, no passengers, and I am held back. I have 2 boats that are capable of hauling approximately 70 tons apiece of freight, which I have to eliminate. I can't use the boats at all on account of the Coast Guard regulation saying any boat over 65 feet in keel length cannot haul freight for hire without marine inspection, certified crew, and such as that. All of these logging camps and mining camps at times will need supplies and stuff which could be serviced by any number of boats in this Territory which right now are stymied by the limit of length on the boat for hauling freight. All these logging camps need supplies. If I go out to a logging camp or any camp out in the woods that needs some supplies, if I put anything on my boat, because I am over 65 feet in length, I am in violation of regulation in hauling any freight out to them. That is when I do it for gain. I can do it for nothing. I would like to see something done about that so a man could operate in the Territory, which I think is a little different from other places in the country and maybe the regulations don't actually fit in up here. I think that should be amended so that any boat in this Territory could help out in transportation to outlying districts. I believe that some of the regulations that the Coast Guard has now are so strict that I would say they were not exactly feasible for this part of the country. I have been up against it several times. I have had fines levied against me, which I fortunately got off pretty easy on, but they didn't let me know I was in violation for things actually that could be ironed out. I mean if any commonsense were used at all. I would like to see something done about regulations for hauling freight up in this Territory. There are a lot of boats lying idle right now that can't be used for transportation because of some regulation that prohibits it. It isn't necessary at all. I think it should be changed. I think that is all I have to say. Mr. BARTLETT. Mrs. Pfost? Mrs. ProST. No questions. 71197-56-19 Mr. BARTLETT. Mr. Sisk? Mr. SISK. No questions. I would like to see the gentleman spell it out in a written statement giving details of what the provisions are and those primarily objected to. Mr. EVANS. I will be glad to do that. Mr. BARTLETT. Mr. Chenoweth? Mr. CHENOWETH. As I understand it, your problem is altogether in the size of the boat. You would be all right if you had a smaller boat? Mr. EVANS. If I had a smaller boat, I would do it. If you have a boat under 5 tons you can do anything you like-powder, munitions, or anything. If you get over 5 tons, you cannot haul any powder on the boat unless you have a special magazine and a certified crew and Coast Guard inspection and all of that. It has to be done a lot of times around here and the restrictions are so terrific it is almost impossible to transport powder. Mr. CHENOWETH. How many certified carriers are there in here? Mr. EVANS. I am not informed enough on that to know. I am not certified. Mr. CHENOWETH. Are some certified? Mr. EVANS. Yes, I believe one or two. They have mail boat that has a small schedule going around some of these smaller towns, but they do not always touch at camps. Transportation has been the biggest problem with some people around here. I mean, when people want something, if there is a boat going that way, they should be allowed to carry it. Mr. CHENOWETH. Are there a number of others who own boats who would like to engage in transportation for hire? Mr. EVANS. It has been touched on before, but like the fishermen they all have boats and they are absolutely worthless if they can't use them in their business, and, as you know, fishing is pretty low right now. And a lot of the boys could use a little extra help in getting through the winter. Mr. CHENOWETH. Your boats are larger than the average fishing boats? Mr. EVANS. Yes, less than 100 feet but over 65-foot limit. Mr. CHENOWETH. The fishing boats are smaller, the seiners? Mr. EVANS. The seiners are limited to 50 feet on the keel. They can haul freight. That is all right there, but they wouldn't have enough in it to make a living at it, just something to help out when they do need it. I think I am up against it because I happen to be overtonnage or overlength. When I want to go out to some camps I am not allowed to carry anything on my boat. Mr. CHENOWETH. Who regulates that traffic? Mr. EVANS. The Coast Guard. Mr. CHENOWETH. Have you made any effort to get a certificate? Mr. EVANS. I have looked into it. If I tried to do those thingsI have to have boat inspection of my vessel every year, also a certified crew, which would take all of the profit out of it to begin with. If a man had to put what they require on a boat, 6 to 10 men, there wouldn't be enough in it to feed them, Mr. CHENOWETH. It is impossible to comply with present regulations and operate at a profit? Mr. EVANS. That is right. I think it should be flexible enough to help the Territory out. I am primarily interested in trying to help transportation. I think it is backward as it can be right now. Mr. CHENOWETH. I have only been up here a week, and it is my first trip to Alaska, and I would certainly agree that transportation is one of your main economic problems here in Alaska. I think anything that can be done to encourage transportation ought to be done. Mr. EVANS. I feel there has been a lot of discouragement in it. I don't believe anybody could be encouraged to come into the Territory to try to alleviate the situation. Where the pressure is coming from I wouldn't know. I know, I have hauled between the States and Alaska trying to get stuff up here. I have a 70-ton hold in one of my boats and I need weight in it, ballast, to keep from blowing myself to pieces out in the ocean. Mr. CHENOWETH. Can you bring merchandise in from Seattle? Mr. EVANS. That is what I have been doing a lot of. I am doing that now. I have been hauling logging equipment for lumber camps and building materials and things like that. (Discussion off the record.) Mr. BARTLETT. Thank you, Mr. Evans. The subcommittee hearings are about to conclude. It was almost exactly 3 weeks ago to the minute that the members arrived in Fairbanks, and this marks the end of the most extensive and intensive congressional inquiry in Alaska's history. I want to express my personal appreciation and personal thanks to each member of the subcommittee. I have never known a group of people who have worked so hard and who have devoted all of their time and energy to the pressing problems which were brought before them. I am sure that out of these hearings, which have gone on for 81%1⁄2 hours and which have brought before the subcommittee 234 witnesses, will come beneficial results to Alaska. Thank you all very much. The hearing at Ketchikan and the hearings in Alaska are adjourned. (Whereupon, at 12 noon, the subcommittee adjourned to reconvene at the call of the Chair.) |