Miss Kellogg, I think that is a very pertinent question, and your letter will be included in the record. Mr. TAYLOR. Mr. R. A. Bauer asked to be heard concerning rural telephones. STATEMENT OF R. A. BAUER, CONSULTING ENGINEER, MATANUSKA TELEPHONE ASSOCIATION, PALMER, ALASKA Mr. BAUER. I just want to submit a short statement for record purposes of some information on the civilian aspects of the telephone situation in Alaska. Mr. O'BRIEN. Would you identify your connection? Mr. BAUER. I am consulting engineer to the Matanuska Telephone Association. I am R. A. Bauer. I have had numerous contacts with various people who are trying to improve civilian telephone communications. Of particular concern at this time, not related directly to Palmer, but to rural telephones, is the situation which I wish the committee could look into down in Sitka. The telephone company down there had some assurances from REA they could secure a loan to expand and improve, modernize their telephone company if the native-service switchboard at Japomski Island could be acquired by the company. I don't know just how familiar you are with the situation. It is a case where a Government agency has existing facilities which they feel is necessary for their own use, but they find, of course, it impossible to expand their facilities and serve adjacent civilian communities, which is the situation generally throughout Alaska where we have Government agencies. But the situation is occurring where they are unable to secure finances. For that purpose, if the committee can investigate further, I will appreciate it. Mr. O'BRIEN. I do not know, sir, how much power the committee may have to act, but I assure you we have very extensive power to ask questions, some of which are productive and some of which are not. Mr. BAUER. Thank you very much. Mr. TAYLOR. Does your telephone company here have any connection with Army Signal Corps? Mr. BAUER. It only is a connecting company. They provide the long-line service. Mr. BARTLETT. One question. Is there a maximum size of a city so far as loans from REA are concerned? Mr. BAUER. I believe I can answer that, inasmuch as I used to be connected with REA in Washington, to this effect: That REA's policy is restricted by law to cities with a population, I believe, of over 1,500, over 2,500, a figure in that vicinity. They can only extend beyond that in accordance with the terms of the enabling act when the outlying area expenditures are proportionately larger than the moneys they have expended. Mr. BARTLETT. Does the same rule apply to telephone loans? Mr. O'BRIEN. If there are no further questions, thank you very much, Mr. Bauer. Mr. TAYLOR. Mr. Shaw? Mr. MICK. Mr. Shaw is not here. Mr. TAYLOR. Mrs. Mick. Mrs. MICK. I will submit a statement here for the city of Palmer. Mr. O'BRIEN. Identify yourself for the record, Mrs. Mick. STATEMENT OF LUCILLE K. MICK, COUNCILWOMAN, CITY OF PALMER, VICE PRESIDENT, LEAGUE OF ALASKAN CITIES, PALMER, ALASKA Mrs. MICK. Lucille K. Mick, councilwoman from the city of Palmer. Since these questions and problems have been raised in previous testimony, I think I will just submit this for the record since they describe them merely as they apply to Palmer. Mr. O'BRIEN. Thank you very much. Without objection, the statement will be made a part of the record at this point. (The statement referred to follows:) STATEMENT BY LUCILLE K. MICK, COUNCILWOMAN, CITY OF PALMER; VICE PRESIDENT, LEAGUE OF ALASKAN CITIES Palmer's local government problems are probably similar to those of other Alaskan communities, particularly those which are new and relatively small. Our city was incorporated May 1, 1951. Our school district, embracing the city, was incorporated in July of 1949. Before that there was no organized local government here and no local taxes. NEED 30-YEAR AMORTIZATION ON APW LOANS One problem we have because of our present size and because of potentialities envisoned, not only by us who live here but also by professional planning engineers, is that of building public-service facilities which will serve the community for 2 or 3 generations. In the planning stage, the size of the city is projected over a 25- or 30-year period of anticipated growth. Take our water system, for example-it was designed for a population of 15,000 and it cost accordingly. Even though we are extremely proud of and grateful for this first deep-well system in Alaska and realize the economy of planning for the future, still it is difficult for 1,000 people to pay for a system designed for 15,000 over a 20-year period. Perhaps we will achieve that growth within 20 years, but amortization costs are highest over the first years because of the interest. Most people around here consider our present water rates too high; certainly the average cost per family is double what they paid before to a private supplier whose source of supply failed to keep up with the growth of the city. Still, what with maintenance and added capital costs that could not be included in the APW contract or loan, the remaining revenues are nowhere near enough to make the yearly payment under the present amortization plan. If we had the cost amortized over a 30-year period, we believe we could do it. However APW says that these loans are limited to 20 years by congressional action. STREETS AND ROADS; NEED FOR LOW INTEREST MONEY We are glad that you weren't here last Sunday; yet if you had, you might have been able to understand better our problem of city streets. Approaching the city from any direction, Palmer was buried from view by an opaque layer of dust above which only the high peaks of surrounding mountains could be seen. This is a health and safety problem as a business one. Our council felt obligated to take the one road maintenance man we can afford away from his never ending job of repairing and building up streets to watering them. Some paved streets would solve this problem, but not 1 nickel of the thousands of dollars collected here in gasoline taxes of 1 cent per gallon is returned for use of city streets. Our main street connects two so-called arterial highways. If the Alaska Road Commission could be authorized to blacktop this, it would help. I believe that through Delegate Bartlett's bill and assistance, Congress did authorize ARC to continue so-called arterial highways through cities, but Palmer was left out of the publicity listing cities that this authorization would assist. Also, we could do something for ourselves if we could borrow money economically. On such a small budget as ours, we hesitate even to authorize expenses for someone to go outside to seek buyers. Yet, over a period of 5, 10. or 15 years, we could afford to pay for a modest street-paving program. Last year the League of Alaskan Cities adopted a resolution petitioning Congress to provide a Federal insurance program "to fully and unconditionally guarantee legally qualified general obligation and revenue municipal bonds of Alaskan cities both as to principal and interest upon the cities' agreeing to pay an annual insurance premium not to exceed one-fourth of 1 percent of the bond principal involved from year to year." We are a member of the league, and we believe that these insured bonds could be sold even by us on a par with interest rates enjoyed by stateside cities. Such a plan might make it possible for us to make our city a decent place to live in, a place in which other people, businesses and industries would like to settle also. PAYMENT IN LIEU OF TAXES AND ASSESSMENT You are probably familiar with another League of Alaskan Cities resolution requesting Congress to authorize and require payment of special assessments and payment in lieu of taxes for municipal services provided Federal offices, facilities, and properties located within the cities of Alaska. Here in Palmer we have no property tax for city services-yet. We have a sales tax so our city support comes as much from Federal employees as anyone else. Still, whenever we plan improvements to the city which would be on an assessment basis, we feel frustrated from the start because of the huge percentage of street frontage occupied by Federal agencies. If these could not pay their fair share, the other properties would have to carry the additional burden. To date, we have not initiated a program calling for assessments, although we do have the preliminary engineering done on one of them. We have never approached any of the local Federal agencies to learn whether or not they could provide for their share. However, these Federal employees all live here, and we feel that they would be glad to go along with such an assessment program-if they could. As a city we believe in immediate statehood for Alaska because it would stabilize governmental operations and promote the development of Alaska and its cities. Mr. O'BRIEN. Since the lady suggests this had been covered and applies only to the situation as it is here in Palmer, I think she would probably be satisfied, and the committee would, if we skipped the questions at this point. Mr. TAYLOR. I understand also that Mr. Harold Dinkel, a farmer in the community, is here and would like to speak to the group. Mr. O'BRIEN. Would you come forward and identify yourself? STATEMENT OF HAROLD C. DINKEL, MATANUSKA VALLEY, ALASKA Mr. DINKEL. Harold C. Dinkel. Mr. O'BRIEN. And you are a farmer in this valley? Mr. DINKEL. Yes. Mr. O'BRIEN. Are you a homesteader, sir? Mr. DINKEL. I was a colonist and I am a homesteader. Mr. O'BRIEN. You came originally from where?" Mr. DINKEL. From Wyoming. Mr. O'BRIEN. How long have you been here? Mr. DINKEL. Nineteen years. Mr. O'BRIEN. What, in your opinion, would be the most beneficial step for the farmers in this area or in Alaska generally that the Government could take? What do you need most? Mr. DINKEL. We need cheap credit for one thing. Mr. O'BRIEN. Cheap credit? Mr. DINKEL. Yes. Mr. O'BRIEN. I think we all at times have that need. Mr. DINKEL. For land clearing mostly. Mr. DINKEL. 240 acres. Mr. O'BRIEN. 240 acres. That is a comparatively large farm, larger than the average? Mr. DINKEL. It is a little larger than the average, but I don't believe quite big enough. Mr. O'BRIEN. Would you like to expand your farm, but you find the cost of clearance or the unavailability of credit a handicap in that respect? Mr. DINKEL. Yes. We need a few more cash crops, too. Potatoes and milk are our main ones. We should be able to get more according to the experimental station. Mr. O'BRIEN. Do you think that would be made easier if the Extension Service was increased so that some of the knowledge which accumulates at the research center could be spread out among the farmers? Mr. DINKEL. I do, yes. Mr. O'BRIEN. In other words, you think the knowledge exists, it is simply a question of fieldmen getting it out? Mr. DINKEL. Not all of it, no. Mrs. PrOST. Mr. Chairman, I would like to ask, what interest rate do you pay on borrowed money now? Mr. DINKEL. I have been getting most of mine from the bank and pay 8 percent. Mrs. PrOST. Eight percent? Mr. DINKEL. Yes. Mrs. PrOST. What would be a reasonable rate, in your opinion, when you say cheap money? Mr. DINKEL. 4 percent, I believe. Mrs. Prost. Do you happen to know whether there are farmlands left in this valley for homesteading purposes, or is every acre taken? Mr. DINKEL. Right in the immediate valley, you mean? Mrs. ProST. Yes. Mr. DINKEL. Most of it is taken up. Of course, there is some back on the mountains. There is quite a little of it back there, but there is no road to it. It would be pretty expensive to go up in there. Mrs. ProST. Do you have grazing in the foothills around the valley? Mr. DINKEL. There would be grazing if it is possible to get to it. Mrs. PFOST. Thank you. That is all, Mr. Chairman. Mr. O'BRIEN. Any further questions? Mr. DAWSON. What part of Wyoming were you from? Mr. DINKEL. Lusk, Wyo. Mr. DAWSON. What kind of farming operation did you have there before you came up here? Mr. DINKEL. I was mostly in the beet business there. Mr. DAWSON. What do you figure the average value of your land is up here that you are operating? Mr. DINKEL. That is kind of-it is according to where it is. Mr. DAWSON. Your farm, for instance, how much an acre is it worth? Mr. DINKEL. I wouldn't have the least idea. Mr. DAWSON. The banker would have an idea, wouldn't he, when he loaned you money on security? Mr. DINKEL. I think they figure $125 to $200 an acre. That is cleared land, of course. Mrs. ProST. What type of crops do you grow on your particular farm? Mr. DINKEL. I have a little bit of everything, more or less diversified. I bought a new water system this summer, but I got it too late and figure on using it next year-a sprinkler system. (Discussion off the record.) Mr. O'BRIEN. Mr. Irwin has submitted a letter dated June 17, 1955, which he received from Clarence J. Rhode, regional director, Fish and Wildlife Service, on the moose problem. If there is no objection, it will be made a part of the record. (The letter referred to follows:) UNITED STATES DEPARTMENT OF THE INTERIOR, FISH AND WILDLIFE SERVICE, Mr. DON L. IRWIN, Director, Alaska Agricultural Experiment Station, DEAR MR. IRWIN: Thank you for your letter of June 9, 1955. Your observations on the moose during the past winter are interesting. Reports of extensive damage to ornamental tree and shrub planting have not previously been relayed to us. Your report of the number of dead moose found in the Palmer area does not appear to be consistent with the reports that have thus far been received from our field personnel. We will ask Mr. Scott, our biologist from Anchorage, to check with you in the field and secure a report of moose that have died during the winter. Many of the reports we receive are duplications and at best, we are unable to run down all of the incidents of mortality and determine possible causes. Your descriptions of the material that appeared in the paunches of the dead moose seem consistent with their normal feeding activity during the winter when they depend entirely on woody brows. We are, of course, fully aware of the extensive overbrowsing in many areas resulting in feeding on coarse, large stems having a small proportion of bark and cambium. The last paragraph of your letter is a "punchy one." We have been aware of the potential threat of large numbers of moose encroaching upon the Palmer area during the past 6 or 8 years. The Game Commission has discussed the matter at every meeting during this period and our biologists proposed a winter season several years ago. In order to avoid unlimited numbers of hunters "thrashing" the lanscape, a permit season was suggested. While we believe the permit season in late winter accomplishes certain objectives, there are, nevertheless, many objections. Generally, the moose are in poor condition and the hunters raised many objections. We are aware, of course, that taking bulls only will merely alleviate the problem. We suspect that the only solution would be to provide for a limited cow harvest to reduce the population to a more reasonable level in such localized areas as the Palmer area. The Alaska game law is an act of Congress, requiring congressional action for amendment. The present law does not provide for the legal taking of cow moose. We have proposed amendments to the Alaska game law to provide for the taking of cow moose as well as other changes. Thus far, we have had no advice as to the status of the amendments. When and if the amendments are made, you can be sure that the Alaska Game Commission will take whatever action seems best in the interests of all. Very truly yours, CLARENCE J. RHODE, Mr. O'BRIEN. The formal hearing will be adjourned at this point. (Whereupon, at 12: 50 p. m., the subcommittee adjourned to reconvene at the call of the Chair.) |