Mr. SISK. I have a couple of questions I would like to ask Mr. Hope. Do you recommend that the fisheries be turned over to the Territory of Alaska? Mr. HOPE. Never could be worse than it is now. Mr. SISK. Couldn't be any worse? Mr. HOPE. No; I strongly recommend it. I believe you are chairman of the lands committee of the Native Brotherhood. Mr. HOPE. Yes. Mr. SISK. In general, what are your relations with the Alaska Native Service? Do you feel you are getting complete cooperation from them with reference to land problems? Mr. HOPE. They are doing what the law provides them to do, and I think they are doing all right. Mr. SISK. That is all. Mr. BARTLETT. Mrs. Pfost? Mr. BARTLETT. Judge Chenoweth? Mr. CHENOWETH. No questions. Mr. BARTLETT. Andrew, you understand I have to live with these people. Let me say, if you want to add to what you have said by way of written statement, we will be glad to receive it. Mr. SISK. I would like to commend Mr. Hope on a very sincere and what I felt to be speaking strictly from the heart. We always appreciate sincere statements. Mrs. ProST. I wish to join with my colleague, Mr. Sisk, in his statement. Mr. CHENOWETH. Make it unanimous. Mr. BARLETT. Are there any other witnesses to appear before the committee? Mr. KIDD. I would like to request before the hearing adjourns that the feasibility of establishment of a commissary at Mount Edgecumbe be explored by the committee. I ask that because there is a high state of confusion that is existing among our businessmen in Sitka. To illustrate what I mean, I ask Mr. William Olsen, the area director, whether there was going to be a commissary established there. He said, "I never heard about it. I know nothing about it. Approximately 5 minutes later Dr. Mankinen, officer in charge of the United States Public Health Service-I asked him the same question and he tells me the decision is pending. Now the two primary organizations, the right and left hand, seem not to know what is going So we are vitally concerned. on. If there were a commissary established, I can assure you it would be the death of the economic life in Sitka because that Mount Edgecumbe installation is by far the finest and best industry we have here. Fishing is second. And you have heard what Mr. Hope just said. Lumbering is probably third. At the moment our sawmill at Sitka has been shut down for 2 or 21⁄2 years. Mr. BARTLETT. Mr. Kidd, you are not unfamiliar with the fact that we do have this limitation as to time. With the consent of my colleagues, I would like to suggest that we give precisely 10 minutes to this subject and then give all parties an opportunity to supplement whatever they declare orally by way of written presentation. Mr. SISK. Is this the last witness? Mr. BARTLETT. This group of witnesses will be the last. Let me say in connection with that statement we realize many people have had the opportunity to come to the hearing. If they want to send in a written statement on matters pertinent to the jurisdiction of this committee at a later date, we will be glad to receive them. Mr. CHENOWETH. I was going to suggest, Mr. Chairman, you make the termination time at 1 o'clock. It is almost 1 now. Mr. BARTLETT. All right, we will do that. first. Identify yourself for the record. We will call Mr. Olsen STATEMENT OF WILLIAM OLSEN, AREA DIRECTOR, ALASKA NATIVE SERVICE Mr. OLSEN. William Olsen. I am area director of the Alaska Native Service. Mr. BARTLETT. Would you be good enough to tell us what you know about this problem? Mr. OLSEN. The first time I heard about it was last night when Mr. Kidd mentioned it. Mr. BARTLETT. I guess you are available for questions then. Mr. SISK. Under whose authority would a commissary be established, Mr. Olsen? Mr. OLSEN. The United States Public Health Service. Mr. SISK. And as director of the Alaska Native Service you would not be in a position to have anything particularly to do with that? Mr. OLSEN. That is correct. Mr. SISK. That is all. Mr. BARTLETT. If the Public Health Service established such a commissary, would the employees of the Alaska Native Service on Mount Edgecumbe be automatically privileged to purchase there? Mr. OLSEN. That I don't know. I would assume so, but I really couldn't say. For your information, we don't control the central services on Mount Edgecumbe. We did up to July 1, but the Public Health Service was good enough to take them over. We are very happy they took them over. Mr. BARTLETT. Each service now has administrative autonomy; is that right? Mr. OLSEN. I don't understand what you mean. Mr. BARTLETT. There are two separate establishments there administratively now, yourself and the United States Public Health Service? Mr. OLSEN. I think what you mean is that administratively the Public Health Service controls the island. In other words, they are boss of the island. We are on the island in joint cooperation, you might say, with them, but they control the electricity, the heat, food, all the laundry, fire department. Mr. BARTLETT. They lay down the ground rules under which you operate? Mr. OLSEN. Yes. MI. BARTLETT. Thank you. Mr. Utt? Mr. UTT. No questions. Mr. BARTLETT. Judge Chenoweth? Mr. BARTLETT. Thank you very much. Who will appear for the Public Health Service? Dr. MANKINEN. I will. Mr. BARTLETT. Identify yourself for the record. STATEMENt of dr. cARL MANKINEN, UNITED STATES PUBLIC HEALTH SERVICE, MOUnt EdgecuMBE, ALASKA Dr. MANKINEN. Dr. Carl Mankinen. Mr. BARTLETT. Do you want any associates to appear with you? Dr. MANKINEN. I may call on them. Mr. BARTLETT. If so, you may have them come forward right now. Dr. MANKINEN. I didn't come with a prepared statement. This is simply a quarterly Alaskan food price survey which can be included in the record, prepared by the University of Alaska and, I think, strictly impartial. It includes a number of communities throughout Alaska. Mr. BARTLETT. Is there any material in here having reference to the particular situation? Dr. MANKINEN. It merely refers to price comparisons on foods. Mr. BARTLETT. As among the different communities? Dr. MANKINEN. As among the different communities. A committee wants to deal in facts. Mr. MCFARLAND. I might say I was not advised this information was available. It seems to me it might be beneficial to have this in the record, so the committee members would know at the various points in Alaska the prices for food. Mr. BARTLETT. I think so, too. But does this undertake to demon strate a higher cost in Sitka? Is that the general purpose? Dr. MANKINEN. That is right. Mr. BARTLETT. I haven't seen it before. Without objection, it will be accepted. (The document referred to follows:) QUARTERLY ALASKAN FOOD PRICE SURVEY Retail food prices have declined since June 1954 in each of the six Alaskan trade centers surveyed. Prices were also 1 to 5 cents lower per sales dollar in June, as compared to March of this year, in Ketchikan, Sitka, Juneau, and Palmer. A slight increase in Anchorage and Fairbanks during the quarter is more likely due to variance in reporting procedures than a change in price trends for these two cities. Lower prices of some foods more than offset higher prices of others. Apples, oranges, lemons, potatoes, carrots were higher in each of the six cities. Coffee, beef, bacon, and sugar declined. Milk and eggs are selling for lower prices in these cities now than during March or June a year ago. Fresh fruit and vegetable prices are likely to decline with the new crop season. Cocoa is expected to remain at present or higher prices. This is due to the fact that world population and consumption of cocoa products is increasing more rapidly than production. In general, Alaskan food prices are more likely to decline than to increase during the next few months. Comparisons with Seattle retail prices were possible for 25 of the 30 food items priced in Alaskan food stores. If comparable amounts of each of these 25 grocery items had been purchased at Seattle retail prices on May 15 of this year, they would have totaled $9.84 (table 1). This same basket of groceries would have retailed in Alaska on June 15 for $12.74 in Ketchikan. $13.46 in Sitka, $13.10 in Juneau. $14.10 in Anchorage, $13.58 in Palmer, and $16.01 in Fairbanks. Seattle retail food prices are normally a little higher than the Bureau of Labor Statistics averages for major cities in the United States. If Seattle retail prices of these groceries were to equal 100 percent, these same foods would have cost 129 percent in Ketchikan, 137 in Sitka, 133 in Juneau, 143 in Anchorage, 138 in Palmer, and 163 in Fairbanks on June 15 of this year. The quarterly retail food-price survey is a striking example of group cooperation. The basic price data is provided by 3 to 6 merchants in each city. This information is gathered from local stores on a voluntary basis. The personnel of a different Territorial or Federal agency in each of the six towns obtains the prices by visiting each store. The information is mailed to economists at the Alaska Agricultural Experiment Station for analysis and reporting. More than 200 copies of each quarterly release are mailed, on request, to individuals, firms, and agencies in Alaska and the States. This survey is the only cost-of-living study in Alaska conducted on regular year-to-year basis. It is also the first and only continuous basic research study of the consumption of agricultural products in Alaska. This study was initiated in 1949 and continued until this issue by Hugh A. Johnson of the experiment station staff at Palmer. JULY 28, 1955. H. P. GAZAWAY, Alaska Agricultural Experiment Station, Palmer, Alaska. TABLE 1.-Retail prices of 25 comparable food items in Alaskan cities and Seattle, 1 Based on May 15, 1955, Bureau of Labor Statistics, "Food Prices by Cities". Dr. MANKINEN. As I stated, the committee wants to deal in facts. Most of the discussion on the commissary at Mount Edgecumbe has been over here in Sitka. At present there are no plans, there are no plans being laid for a commissary there. We have the authority to do so. Mr. BARTLETT. Under what provision of law or regulation? Dr. MANKINEN. I think Mr. Borders could quote that. He is not here. Mr. BARTLETT. Go ahead. Dr. MANKINEN. We are permitted to sell subsistence items to the employees. Mr. BARTLETT. Which are what? Dr. MANKINEN. Foodstuffs. Mr. BARTLETT. Under this existing authority which you have not used? Dr. MANKINEN. Right. Mr. BARTLETT. But only subsistence items? Dr. MANKINEN. Right. Mr. UTT. I would like to ask the doctor, most of the employees of HEW are civil-service employees? Dr. MANKINEN. A great majority are. Mr. UTT. And they are here on a 25-percent out-of-country wage increase? Dr. MANKINEN. Correct, as other civil-service employees are. Mr. UTT. Yes, all civil-service employees and they do not have to pay Federal income tax on that additional 25 percent. Dr. MANKINEN. That is correct. Mr. UTT. And there is a case pending now as to whether they have to pay Territorial tax on that, I understand. Mr. MANKINEN. So I understand also. Mr. UTT. In Hawaii it was held they did not, and I assume it will be the result here. So in considering a commissary and the prices, isn't it very essential to take into consideration that situation of that 25-percent allowance, plus the fact that it is tax free? Dr. MANKINEN. It is taken into consideration. Mr. UTT. That is correct. That is all I wanted on the record. I might say, many of the questions we ask do not necessarily reflect our own opinion, but we do want to get certain information on the record and that is why these questions are asked. Mr. CHENOWETH. Has there been some discussion of the commissary Dr. MANKINEN. The first actual information I had about our putting one up was the question I was asked by the president of the chamber of commerce. Mr. BARTLETT. When Dr. MANKINEN. Either September 7 or 9. Mr. CHENOWETH. What is the housing situation? Dr. MANKINEN. We do not have housing for all the employees at Mount Edgecumbe. Mr. CHENOWETH. Where do they live? Dr. MANKINEN. Here in town. Mr. CHENOWETH. What about the rents here? Dr. MANKINEN. That has been an individual problem. I haven't dug into it. Mr. CHENOWETH. Is there any complaint over rents? Dr. MANKINEN. A good many ask for housing on Mount Edgecumbe because it is cheaper. Mr. CHENOWETH. How much cheaper are your rents there? Mr. CHENOWETH. Say for comparable housing. Dr. MANKINEN. I haven't gone into that. It is pretty difficult to compare some of the quarters with some of the houses over here. |