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Lillian Fas; $10,000,000.
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LINES OF GOVERNOR AND OF SECRETARY

L ike the first item is salaries of the Governor and of thor Birhen ne items total $15.600

Tas sir. This appropriation item provides for the R rmer and of the secretary of the Territory, which inted by Congress at rates of $10,000 and $5,600, 1 purimate of $15,600 for the fiscal year 1938 is,

tim sum required for the payment of these salaries. Therefore the matten sum required fort

This is the f i t as that appropriated for the fiscal voor m

o rtuis, of course, are controlled by law and, naturaliv

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TITTINGENT EXPENSES, OFFICE OF THE GOVERNOR

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Mr. SORU'ONAM. The next item is axperises of the offices of the

The next item is for incidental and contingent utices of the Governor and the secretary of the

Territory

The justification prepared on this item is as follows:

Mr. (London, The justification preno

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as wypropriation provides for de

of the Governor's office and for the ma The requested for these pure

W YT EXPENSES, TERRITORY OF ALASKA

vides for personal services and various contingent Solice and for the maintenance of the executive mansion.

for these purposes for the fiscal year 1938 is $14,810; the lated for this fiscal year was $15,890.

al year 1938 is $10,520 for personal

or the past several years, there are

ealed expenditure for the

14,290 for other expo

but five positions provided for in this estimate. They consist of a secretary to the Governor, at $3,500; a clerk to the secretary of the Territory, at $2,100; an accounting clerk, at $1,920; and a janitor and caretaker at $1,860 and $1,320, respectively. This accounting clerk, at $1,920, is to take charge of all local operations in connection with the disbursement of Federal appropriations coming under the jurisdiction of the Governor of Alaska not assumed by the disbursing officer of the Treasury Department. The consolidated disbursing officer hitherto carried on the staff of the Governor's office, at a salary of $3,000, was transferred to the Treasury Department.

The estimate for other expenses provides for all contingent needs of the Governor's office and includes maintenance items for the Governor's mansion. The major expenses are for supplies and materials, travel, heat, light, and power, equipment, and communication. Actual expenditures for these needs and other miscellaneous items in 1936 amounted to $5,889.

The contingent expenses are approximately those of the last appropriation and are based upon that figure. In our break-down there is no item that looms up particularly large. I shall be glad to take up any of them that you wish to discuss in detail.

Mr. SCRUGHAM. Apparently there is a decrease, from $15,890 to $14,810.

Mr. GORDON. Yes, sir.

Mr. SCRUGHAM. I think you have stated somewhere that the disbursing officer at $3,000 a year has been transferred to the Treasury Department; is that correct?

Mr. GORDON. That is correct.

Mr. SCRUGHAM. That would reduce that item to $12,890, would it not?

Mr. GORDON. No, sir; there is a small increase.
Mr. SCRUGHAM. What is that increase?

Mr. GORDON. There is an increase of $1,920, because of the addition of an accounting clerk in the Governor's office, to aid in the preparation of statements before they go to the disbursing officer.

Mr. SCRUGHAM. Are there any questions on that item?

LEGISLATIVE EXPENSES, TERRITORY OF ALASKA

Mr. SCRUGHAM. The next item is for legislative expenses.

Mr. GORDON. The justification that was prepared in support of this item is as follows:

The Legislature cf Alaska meets biennially. A session will be held this year and the next regular session will be held during the fiscal year 1939. No appropriation is required for the fiscal year 1938.

REINDEER SERVICE

Mr. ScrUGHAM. The next item, which is reindeer service, appears on page 492 of the subcommittee print of the bill.

Mr. GORDON. The justification which we have prepared in advance on this item is as follows:

REINDEER SERVICE

The purpose of this appropriation is to provide general supervision of the reindeer industry in Alaska, including the keeping of ownership records, instruction in care and management of reindeer as well as the conservation and utilization of grazing areas, and to provide to a limited extent for the establishment of new herds. Supervision covers some 600,000 reindeer, owned by approximately 3,500 persons and occupying range on the mainland from Point Barrow to Bristol Bay, as well as on several islands.

139751-37-pt. 1- 43

The estimate of $33,500 for the fiscal year 1938 is the same amount as the appropriation for the fiscal year 1937. This amount is necessary to cover the usual personnel charges of conducting this service; the expenditures for continuous travel over a large area, and incidental expenses for necessary supplies, materials, and equipment.

Only seven positions are provided for in this estimate, as in the case of the 2 past years, these consisting of a general supervisor of reindeer at $3,800; five unit managers at an average of $2,680, and a clerk-stenographer at $2,200, who is also required to perform the duties of a voucher clerk and bookkeeper.

The estimate of $14,280 for other expenses provides for supplies, materials, travel, rent, and miscellaneous expenses of the service, the major items being for supplies, travel, and equipment.

Mr. SCRIGHAM. What is your comment on that?

Mr. GORDON. The appropriation of $33,500 remains the same as that for last year. This is largely taken up by the salaries of the personnel, five unit managers, the general reindeer superintendent, and an office clerk.

Mr. SCRIGHAM. If I recall correctly, last year there was an item of $1,000 for the purchase and distribution of reindeer that was not in there previously. Is that correct?

Mr. GORDOx. That is correct. That item was not an increase in the appropriation. We simply allotted $1,000 of the appropriation to be used for that purpose.

Mr. Scrigham. That is a desirable thing to continue, in your opinion?

Mr. Gordon. Yes, sir; it is quite desirable to continue it.
Mr. SCRIGHAM. Are there any questions?

Your actual expenditures last year, instead of being $33,500, as given in the next to the last item, were $30,133, is that correct?

Mr. Gordon. That is correct.

Mr. ScreGHAM. What is the necessity of $33,500, if you got along with $30,133 last year?

Mr. Gordon. That saving is accounted for largely in lapses in salaries.

Mr. SCRIGHAM. Why did the salaries lapse?

Mr. Gordox. There was a vacancy for a brief time in the position of general superintendent, and also unit manager. It was not possible to fill it immediately because of transportation conditions.

Mr. SCRIGHAM. I see.
Mr. FITZPATRICK. Do you intend to fill it?
Mr. GORDON. Yes, sir.

Mr. SCRIGHAM. You require, therefore, the full amount for the next year?

Mr. GORDON. Yes, sir.
Mr. Rich. Is it absolutely necessary to fill it?
Mr. Gordox. In our opinion, it is; yes, sir.

Mr. Rich. If you do not make some effort in some way to cut down this bill in one department or another, and you just let it slide through, after a while it is going to become so burdensome that I do not know where we are going to get the money to be able to continue to supply funds from the Federal Treasury to carry it on. That is the reason I think you men in Alaska ought to try to develop something to cut down the Government's overhead, a territory that has so wonderfully fine resources today that I feel the Federal Government ought to be making money out of it, instead of its being an item of expense.

Mr. GORDON. I assume that you are talking now about this one particular item of reindeer service, $33,500. This item is largely & welfare item for the natives of Alaska for the care of their reindeer, and can be so considered. It is a small organization of seven people, five people in the various districts. They cover an area raching from Demarcation Point, about 100 miles inland, going all around this coast, all down here (indicating), to the town of Ugashik, or a distance which is almost equivalent to the distance between the Canadian and the Mexican borders, dealing with some 19,000 reindeer. So, in my opinion, it is rather an enormous task to place upon a force of seven people.

Mr. Rich. By spending this money for the benefit of the reindeer service, what will that in return give to the people of Alaska, or to the people of this country in value by the development of these herds?

Mr. GORDON. May I break down the answer into two parts: First of all, it conserves a native industry. It eliminates, undoubtedly, an appropriation of several million dollars for the aid of the natives of Alaska, by way of a dole.

In the second place, as the reindeer industry has been developed up to the present time, it cannot safely be said that it will increase the food products of the United States proper at all. The reason for this statement is based upon the difficulties in transportation, the seasonal difficulties, and problems of competition with the meat products of the States. However, should those difficulties be overcome, then the potential food supply from reindeer in Alaska is rather significant.

COMPARATIVE COST OF RAISING REINDEER MEAT IN ALASKA AND CATTLE IN THE

UNITED STATES

Mr. Rich. One further question: Is it as cheap to raise reindeer in Alaska as it is to raise cattle in the western part of our country?

Mr. GORDON. I cannot inform you on the cost of raising cattle in the western part of the United States, but my impression is it is cheaper to raise a pound of reindeer meat than it is to raise a pound of beef; but to put it on the market in the States requires an additional $20 a ton for transportation, and an additional amount for cold storage, to hold it from one open season to another. However, we do have in the reindeer industry, a food supply that is useful within the Territory of Alaska.

Mr. Rich. One other question: How do you compare the quality of the meat of a reindeer with that of a western steer? Mr. GORDON. I can give you only my personal likes and dislikes. Mr. Rich. That is what I want, your personal opinion. Mr. GORDON. In my opinion, reindeer meat properly killed and properly cooked has few equals.

ESTABLISHMENT AND MAINTENANCE OF PUBLIC SCHOOLS IN ALASKA

Mr. SCRUGHAM. The next item is on page 494, for the establishment and maintenance of public schools.

The amount of your estimate is $50,000. That item has been the same for a great many years, and I assume is required by the Permanent Appropriation Repeal Act of 1934.

Mr. GORDON. Yes, sir.

The justification for this item is as follows:

PUBLIC SCHOOLS-ALASKA Prior to the fiscal year 1936, this appropriation item was a special fund consisting of 25 percent of all moneys collected as occupation and trade licenses outside of incorporated towns in Alaska, which were authorized for expenditures for the construction and maintenance of schools in Alaska. Section 4 of the Permanent Appropriation Repeal Act approved June 26, 1934, transferred the special fund to a general fund of the Treasury, and authorized annual appropriations there after in amount equal to the receipts which otherwise would have been available as permanent appropriations, and for the same purposes previously authorized.

There remained an available and unexpended balance in the special fund on June 30, 1935, amounting to $48,687.16. Receipts credited to the Treasury for this appropriation during the fiscal year 1936 amounted to $17,566.02. Withdrawals during the fiscal year 1936 from the appropriation amounted to $56,636.06.

It was estimated that receipts for the fiscal year 1937 would amount to $50,000 and this sum toge her with the unexpended portion of the balance of the special fund carried forward from June 30, 1935, was made available for expenditure. The unexpended balance amounted to $38,355.12, making the total availalle $88,355.12, contingent upon receipts of $50,000 being deposited in the Treasury during the fiscal year.

For the fiscal year 1938 it is also estimated that receipts will amount to $50,000 and the entire amount of the estimate is requested for appropriation. Although the receipts are now deposited in the general fund of the Treasury, they are (s. sentially Territory funds, which it is considered should be returned to the Terri. tory by means of this appropriation for the purposes intended by the basie act, particularly since the Territory is in need of all the educational facilities which this appropriation aflords. In addition, the educational budget for the next vrar approved by the last session of the Territorial Legislature included estimated receipts for 1938 in the amount requested for appropriation.

('nder section 161 of l'nited States Code, title 48, the Governor of Alaska is ex-officio superintendent of public instruction in the Territory. Schools in incor porated towns are under the immediate supervision of school boards who make selections of the teachers, janitors, or other employees. Schools outside of incor porated towns; selections of teachers and employees are made by the Governor, or the territorial commissioner of education under his direction. Requisitions are made by the Governor for necessary funds for schools outside of incorporated towns, the funds being placed to the credit of the treasurers of the school districts and expended under their general supervision. This department has no duty to perform other than to consider and approve the requisitions of the governor, the examination and adjustment of the school accounts being made in the Treasure.

These are Federal taxes collected in Alaska and converted into the Federal Treasury.

Mr. SCRIGHAM. Is that the occupational trade license tax?
Mr. GORDON. It is, sir.
Mr. FITZPATRICK. Has that increased in the last couple of years?

Mr. GORDON. The total income from that source averages from year to year about $200,000, of which 25 percent is transferred for this purpose

Mr. FitzPATRICK. What I mean by that is, do you find it necessary to spend more money for education than you did 2 years ago?

Mr. Gordox. Possibly I should have clarified the situation by saying that within the Territory of Alaska we have two school systems, one of which is maintained and managed by the Federal Government for the natives of Alaska under the Bureau of Indian Affairs.

The other system is maintained by the Territory of Alaska, and it is toward the support of that system that this $50,000 is to be applied. Now, in addition to the $30,000 the Territory of Alaska secures by annual appropriation, which, in the last appropriation of 19.33, amounted to $1,014,000, so that the $30,000 is only a part of the total expense.

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