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Mrs. ProST. You receive no Federal funds?

Mr. DANIELSON. We have received some aid under the provisions of Public Law 874 which provides money in reality in lieu of tax for Government installations in our community.

Mrs. ProST. You refer to the Coast Guard?

Mr. DANIELSON. The Coast Guard and the ACS and some of the employees of the post office.

Mrs. ProST. How many in number would there be from those Federal installations?

Mr. DANIELSON. Probably 125 to 150 students.

Mrs. PrOST. You mentioned spending $1,343,000 of public works money; did your area match funds by putting up $1,343,000 also? Mr. DANIELSON. Yes. And we also put up money in addition to that in order to provide certain equipment needed within the school

on our own.

Mrs. ProST. Which was in addition to the public works program? Mr. DANIELSON. Yes.

Mrs. PFOST. That is all.

Mr. BARTLETT. Mr. McFarland?

Mr. MCFARLAND. No questions.

Mr. BARTLETT. Dr. Taylor?

Mr. TAYLOR. One question. How many Indian students do you have in school?

Mr. DANIELSON. It depends upon your definition of e native. Mr. TAYLOR. How many students do you have that might be eligible for the Johnson-O'Malley contribution?

Mr. DANIELSON. Probably 150 to 200, a very rough guess.

Mr. TAYLOR. And how much do you collect from Johnson-O'Malley? Mr. DANIELSON. None.

Mr. TAYLOR. Because Mr. Olsen, area director of the Alaska Native Service, is in the room I wonder if he might give us an answer as to whether or not the Ketchikan School District would be eligible for assistance under the Johnson-O'Malley Act.

Mr. OLSEN. No; they are not.

Mr. TAYLOR. Why not?

Mr. OLSEN. I suppose it is Bureau policy that we are trying to get out of the school business and, of course, trying to get out of assistance to the native people where we can commensurate with the good of the native people. And I think it ought to be brought out— I am sure it is a fact here that many of these natives own nonrestricted titles and, of course, pay taxes to the city of Ketchikan and property taxes and many other taxes.

Mr. TAYLOR. Is there an Indian school in the close vicinity?
Mr. OLSEN. No.

Mr. TAYLOR. Thank you.

Mr. BARTLETT. Mr. Sisk?

Mr. SISK. I just have one other question, Mr. Danielson, that I had planned on exploring, and it had slipped my mind. Who plans or determines the type of construction of the schools in this ares? Mr. DANIELSON. You mean within our own school district?

Mr. SISK. Yes.

Mr. DANIELSON. The school board chiefly through cooperation with the department of health and the Territorial department of

education.

Mr. SISK. The reason that I ask that question--and this is not a criticism of the way it has been handled necessarily-for example, I was told that one of the school buildings in Alaska has a stage which is second only to Radio City Music Hall in New York. Now I am not the person who desires to see youngsters have second-rate facilities, certainly, but actually it has occurred to me, and I am wondering whether curtains that cost $72,000-maybe that $72,000 could have been put into some classrooms in needed areas.

As I say, this is not meaning to be critical, and yet I am wondering whether that type of elaborate construction is completely feasible for any area. I don't care whether this area, California, Oregon, or anywhere else. For that reason I was interested in who determined the amount of money spent on a single facility.

Mr. DANIELSON. You are referring to the Anchorage school?

Mr. SISK. Yes. I did not plan on mentioning the name, but since you have, that is right.

Mr. DANIELSON. I wanted to be sure you were not referring to Ketchikan.

I might add a word there insofar as Ketchikan is concerned. In our school building program we have added a gymnasium and auditorium, and they are very adequate. Our auditorium seats 1,200 and our gymnasium from 1,500 to 2,000.

There is one factor I hope you folks will consider especially in southeast Alaska. We have 17 feet of rain on the average each year. Not 17 inches, 17 feet. Therefore, whether we want to admit it or not, we are an indoor people. We have to play inside most of the year. And from that point of view the board felt in providing the auditorium and gymnasium they were providing badly needed community facilities as a part of our school system and which would be available for school use also.

Mr. SISK. As I say, this is not meant to be critical. I am very happy you have adequate facilities as you do. But I do feel that probably might receive some consideration in the future with reference to the putting out of Federal moneys.

For example, in one of the high schools in my hometown which has 3,000 students in high school alone, it is just 1 of 4 high schools in the city and does not have an auditorium even. I am just bringing out the fact. I don't want you to feel maybe we have spoiled you by an overabundance of Federal funds because, of course, we do want to see adequate facilities for education. I am concerned that it be ample. Yet I do feel there should be judgment used in the ways those funds are spent.

Mr. DANIELSON. Surely.

Mr. SISK. I appreciate your statement, Mr. Danielson.
Mr. BARTLETT. Mr. Danielson, what is the tobacco tax?

Mr. DANIELSON. Pardon me?

Mr. BARTLETT. The tobacco tax. What does the law do?

Mr. DANIELSON. The tobacco tax income, of course, comes from tax on tobacco within our Territory, and the funds are restricted for use for building construction or rehabilitation and can be used for no other purpose.

Mr. BARTLETT. Construction or rehabilitation of schools?

Mr. DANIELSON. Yes.

Mr. BARTLETT. And only schools?

71197-56-11

Mr. DANIELSON. Yes; it is limited to schools.

Mr. BARTLETT. That money is paid to the Territorial government? Mr. DANIELSON. It is paid to the Territory and then it is distributed to the schools of the Territory on the basis of a certain formula that has been set up.

Mr. BARTLETT. Can you recall offhand what that formula is?

Mr. DANIELSON. Yes. Generally speaking, it includes a flat rate to all of the schools of, I believe, $3,000 a year. That is the starting point.

Mr. BARTLETT. Within and without municipalities?

Mr. DANIELSON. No, that is the incorporated school district. First of all, I might say it separates the funds into two divisions: The rural school division, which is handled through the Territorial board of education, and then incorporated school district portion, which is handled according to the formula. And that formula includes a flat appropriation, I believe, of $3,000 a year to each of the schools in incorporated districts, and then the remainder is apportioned on the basis of school enrollment and classroom units. A classroom unit in reality is a teacher and so many students. So it is based on the number of teachers and also the number of students.

Mr. BARTLETT. Thank you, Mr. Danielson.

Have you traveled to many or any of the smaller communities in this part of Alaska or any other part?

Mr. DANIELSON. Southeast Alaska, yes.

Mr. BARTLETT. What would you have to say about the quality of these school buildings in the smaller places?

Mr. DANIELSON. Some of the outlying areas have buildings in rather pathetic condition. In some of the places like our neighboring towns it is average, I would say. We have some towns out on the west coast at the present time that have really no means of financing their portion of the cost of construction, and therefore their building facilities are very limited.

Mr. BARTLETT. Thank you.

Mr. CHENOWETH. I am curious about your athletic program in view of that fine gymnasium you have. I suppose you have a championship basketball team every year here.

Mr. DANIELSON. We don't emphasize that. When we get one we are happy.

Mr. CHENOWETH. I am wondering about your athletic program and relations with other schools. Do any of the Seattle schools compete here or is that a little too far?

Mr. DANIELSON. It is a little too far, and up to the present time it is a little too expensive.

Mr. CHENOWETH. With whom do you compete?

Mr. DANIELSON. We play the towns in southeast Alaska, chiefly Prince Rupert, Juneau, Petersburg, Wrangell, and other teams. Mr. CHENOWETH. You travel from town to town, do you? Mr. DANIELSON. We travel chiefly by air. In southeast Alaska the situation is somewhat different from what you have in the States. When I was back in Montana we had a town 100 miles away. We would drive over after school and play them and come back afterward. If we were to go by boat to Petersburg to play them, we would have to leave at 5 in the morning to get in at 7 o'clock at night, probably rest the next day, and take the same amount of time to come back.

So we have to conserve schooltime and go by air. That limits us to some extent. Of course, if you have small gymnasiums and can't accommodate the crowds that want to come, you have no finances for traveling by air. So we are somewhat limited.

Mr. CHENOWETH. I heard the claim made in Petersburg that they had the finest gymnasium in Alaska. Do you dispute that? Mr. DANIELSON. They have a fine gymnasium.

Mr. CHENOWETH. Most of these towns have good gymnasiums, do they?

Mr. DANIELSON. They do now thanks to Alaska public works.

Mr. CHENOWETH. In other words, you are carrying about the same type athletic program they do in the States as far as basketball is concerned?

Mr. DANIELSON. That is right.

Mr. CHENOWETH. I am very glad to hear that. Thank you.

Mr. UTT. Are there any school districts within Alaska that are not contiguous to or a part of an incorporated city?

Mr. DANIELSON. That would be hard to answer. I think that most: of them are the city is a part of the school district or the boundaries are the same.

Mr. UTT. The lack of facilities which you refer to on the coast, are they within incorporated limits or could they be independent school. districts?

Mr. DANIELSON. I think they are connected with small cities.

Mr. UTT. Is it within the law to create a school district independently of any city? And if so, who would be the governing body of such a school district?

Mr. DANIELSON. I believe Mr. Dafoe, commissioner of education, might answer that better than I. But I believe we do maybe have 1 or 2 school districts in the Territory which do not include cities. But I think the rest of them do.

Mr. UTT. One final question. As a rule what is your average cost of a classroom?

Mr. DANIELSON. For construction purposes?

Mr. UTT. Yes, sir.

Mr. DANIELSON. If you include merely the cost of the classroom without the gymnasium and auditorium

Mr. UTT. I am suggesting the addition of 10 classrooms to your plant.

Mr. DANIELSON. We have 6 classrooms, which we are estimating at a cost of $165,000.

Mr. UTT. A little less than $30,000.

Mr. DANIELSON. Yes.

Mr. UTT. That is all.

Mr. BARTLETT. Thank you, Mr. Danielson.

It would be my suggestion, Dr. Taylor be requested to write to the superintendent of schools at Anchorage, Mr. Morgan, and make inquiry as to the point brought up by Mr. Sisk as to the auditorium and the cost of the stage. It might be well to have a statement from him. Mr. SISK. I am not trying to indict the city of Anchorage or anyone else on that.

Mr. BARTLETT. I know that.

Mr. SISK. I feel it is something that might have to eventually come out, which might prove detrimental to Alaska. I think it probably would be advisable.

Mr. BARTLETT. That was my only purpose. I knew you were not trying to make an indictment, but I thought to clear the record we should have a statement from the superintendent there.

Mr. SISK. I think it would be excellent.

(Subsequently Mr. A. W. Morgan, superintendent, Anchorage Independent School District, submitted the following letter:)

Dr. J. L. TAYLOR,

ANCHORAGE INDEPENDENT SCHOOL DISTRICT,

Anchorage, Alaska, October 5, 1955.

Care of Mr. E. L. Bartlett, Fairbanks, Alaska.

DEAR DR. TAYLOR: I received your letter of inquiry Wednesday, October 5, 1955. You failed to state just where I should send my reply, and knowing that Mr. Bartlett may still be with your group I am taking the advantage of his services to see that this letter is delivered to you.

Construction costs are higher in Alaska than they are in the States, and as I told you as we traveled through our new high-school building our per-square-foot cost would have been higher had we not received some very fortunate bids. A similar building to this was built in Parma, Ohio, 2 years ago, and according to the article in the school board journal the cost was $21.19 per square foot. Our building cost was between $21 and $22 per square foot, so that certainly isn't out of line.

The cost of all stage equipment, including battens, counterbalances, light fixtures, drapes, front curtain-in fact everything on the stage was $55,000. The high bid for all of the stage equipment was $80,000. One newspaper here in Anchorage erroneously printed that the front curtain alone cost $80,000, and was gold. It is true the curtain is gold in color. I am happy to make this explanation and correct some erroneous stories, or hearsays.

We also enjoyed appearing before your group of the committee hearing.

Cordially,

A. W. MORGAN, Superintendent.

Mr. DANIELSON. May I add one thing more? I believe that building was built under a different program than the Alaska public works. I believe it comes under Public Law 815.

Mr. SISK. I appreciate that, Mr. Danielson. It was partially brought about through Federal impaction by the military.

Mr. DANIELSON. Yes.

Mr. BARTLETT. W. K. Boardman, manager of the Ketchikan Chamber of Commerce. Will you identify yourself for the record?

STATEMENT OF. W. K. BOARDMAN, MANAGER, KETCHIKAN CHAMBER OF COMMERCE, ALASKA

Mr. BOARDMAN. Mr. Chairman and members of the committee, my name is W. K. Boardman. I am manager of the Ketchikan Chamber of Commerce and also at this hearing will testify on behalf of the Bar Point Harbor Committee, which is a communitywide committee made up of segments of our fishing groups, union groups, and business interests on the specific project.

I would like to echo Mayor Beck's remarks this morning about how appreciative we are of your committee being in Alaska and taking 3 weeks off from your busy duties in your own congressional districts to listen to our problems. I know your first loyalties should lie and do lie with your own constituents, and I think it is very fine you take the time to spend 3 weeks up in our northern Territory going into our problems.

I have handed Mr. McFarland a written brief that the chamber has filed before this committee. I think each of you probably has a copy

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