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. SCRUGHAM. 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. SCRUGHAM. 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. GORDON. 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. SCRUGHAM. That is a desirable thing to continue, in your opinion? Mr. GORDON. Yes, sir; it is quite desirable to continue it. Mr. SCRUGHAM. 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. SCRUGHAM. 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. SCRUGHAM. Why did the salaries lapse? Mr. GORDON. 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. SCRUGHAM. I see. Mr. FITZPATRICK. Do you intend to fill it? Mr. GORDON. Yes, sir. Mr. SCRUGHAM. You require, therefore, the full amount for the next year? Mr. GORDON. Yes, sir. Mr. RICH. Is it absolutely necessary to fill it? Mr. GORDON. 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. Ar. GORDON. I assume that you are talking now about this one ticular item of reindeer service, $33,500. This item is largely a fare item for the natives of Alaska for the care of their reindeer, I can be so considered. It is a small organization of seven people, › people in the various districts. They cover an area raching from marcation Point, about 100 miles inland, going all around this st, all down here [indicating], to the town of Ugashik, or a distance ich is almost equivalent to the distance between the Canadian and › Mexican borders, dealing with some 19,000 reindeer. So, in my inion, it is rather an enormous task to place upon a force of seven ople. Mr. RICH. By spending this money for the benefit of the reindeer rvice, what will that in return give to the people of Alaska, or to e people of this country in value by the development of these herds? Mr. GORDON. May I break down the answer into two parts: First all, it conserves a native industry. It eliminates, undoubtedly, an propriation of several million dollars for the aid of the natives of laska, by way of a dole. In the second place, as the reindeer industry has been developed p to the present time, it cannot safely be said that it will increase the od products of the United States proper at all. The reason for this batement is based upon the difficulties in transportation, the seasonal ifficulties, and problems of competition with the meat products of he States. However, should those difficulties be overcome, then the otential 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 thereafter 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 $47,566.02. 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 together with the unexpended portion of the balance of the special fund carried forward from June 30, 1935, was made available for expendit..re. The unexpended balance amounted to $38,355.12, making the total availai le $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 essentially Territory funds, which it is considered should be returned to the Territory by means of this appropriation for the purposes intended by the basic act, particularly since the Territory is in need of all the educational facilities which this appropriation affords. In addition, the educational budget for the next year approved by the last session of the Territorial Legislature included estimated receipts for 1938 in the amount requested for appropriation. Under section 161 of United States Code, title 48, the Governor of Alaska is ex-officio superintendent of public instruction in the Territory. Schools in incorporated towns are under the immediate supervision of school boards who make selections of the teachers, janitors, or other employees. Schools outside of incorporated towns; selections of teachers and employées 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 Treasury, These are Federal taxes collected in Alaska and converted into the Federal Treasury. Mr. SCRUGHAM. Is that the occupational trade license tax? 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. GORDON 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 $50,000 the Territory of Alaska secures by annual appropriation, which, in the last appropriation of 1935, amounted to $1,014,000, so that the $50,000 is only a part of the total expense. Mr. FITZPATRICK. I thought $50,000 was a very small amount. That was my reason for asking that question. Mr. RICH. You think $50,000 is a very small amount? Mr. FITZPATRICK. For the education of the children up there, yes. CARE AND CUSTODY OF INSANE IN ALASKA Mr. SCRUGHAM. The next item is Insane of Alaska. Mr. GORDON. The justification which we have prepared on this item is as follows: CARE AND CUSTODY OF INSANE, ALASKA Expenditure from this appropriation covers the care and treatment of the legally adjudged insane committed from the Territory of Alaska. The contract with the present contractor, the Sanitarium Co., Portland, Oreg., is dated June 8, 1935, and is for a 1-year period, beginning January 16, 1936, at the rate of $600 per patient, per annum. This contract will expire on January 15, 1937, at which time another contract dated July 17, 1936, with this contractor will become effective, and continue for 1 year from that date at the rate of $600 per patient per annum. > The appropriation of $161,600 for the 1935 fiscal year was based upon a monthly average of 271 patients, but this amount was insufficient as the number of patients had increased to 304 at the beginning of that fiscal year. It was therefore found necessary to secure a deficiency appropriation of $15,900 from Congress, making the total appropriation for that year $177,500. The amount appropriated for 1936 was $179,000, but this amount, although based upon an average of 300 patients per month, was not sufficient, as an unexpected increase in the number of patients to 311 during a portion of the year made it necessary to secure a deficiency appropriation of $1,250, increasing the amount for that year to $180,250. The total sum of $190,672 was estimated as necessary for the fiscal year 1937, this amount being based upon a monthly average of 304 patients then under care, and $190,600 was appropriated for the year. In view of the fact that the number of these patients on July 1, 1936, was 311, and the cost of their maintenance during the first half of the 1938 fiscal year will continue at $600 per patient per annum, with the rate for the remainder of that year unknown at this time, the estimate for 1938 is submitted for the total sum of $190,600. This is the same amount appropriated for 1937. The number of patients received in the Morningside Hospital, fiscal years 192035, inclusive, and from July 1 to September 30, 1936, together with the number of patients released (through discharges, deaths, deportations, transfers, etc.) and the average monthly number of patients under case during that period, etc., are shown by the following tables: Statement showing Alaskan insane patients received, discharged, eloped, deceased, etc., July 1, 1934, to and including Sept. 30, 1936 Insane patients under care June 30, 1934. Received during July 1934. Discharged 2. 1 287 2 |