and to better the physical facilities. In addition, during the past year the sanitarium company has erected additions to the physical plant which will decrease a certain amount of overcrowding prevalent their prior to the building of these structures.

Mr. SCRUGHAM. Does this officer you have just mentioned take the place of the public-health officer that was previously in such position? Mr. GORDON. Yes, sir.

INVESTIGATION INTO PROPOSED CONSTRUCTION OF HOSPITAL FOR INSANE

Mr. SCRUGHAM. Do you recall that a year ago we discussed, and I think we suggested that your organization make an examination of the possibility of the Government building its own hospital, to see whether there would be any economy to the Government by such a procedure? Has such an investigation been made?

Mr. GORGON. We had made a preliminary investigation of that, and at the present time there is on the docket a bill introduced by Delegate Dimond on which we are preparing a report. The report is not yet available for release by the Department.

Mr. RICH. Are you getting some one to make a report to determine whether it is more feasible to handle those insane patients in Alaska than it is to ship them down to the States?

Mr. GORDON. We are in the process now of making the Department's report on Mr. Dimond's bill. In that report it will be covered. If you would like a separate report for this committee, we will prepare it.

Mr. RICH. Have you reached your conclusions on that?

Mr. GORDON. We have reached a conclusion which is a favorable report on the bill.

Mr. RICH. It is your conclusion that it is cheaper? If it is we had better consider that.

Mr. GORDON. The conclusion is that it will not, necessarily, save money. Our report will be based upon two things: First, we have a situation which is basically questionable, the farming out of helpless wards of the Government for the possibility of private gain. The second is, that under our full control and direction we can probably administer a better type of treatment, but I think that the figures will show that we will not save money thereby.

CONSTRUCTION AND MAINTENANCE OF ROADS, BRIDGES AND TRAILS IN

ALASKA

Mr. SCRUGHAM. The next item is for the repair and maintenance of roads, tramways, ferries, bridges, and trails.

Mr. GORDON. The justification for this item is as follows:

ALASKA ROAD COMMISSION – CONSTRUCTION AND MAINTENANCE OF ROADS, BRIDGES,

AND TRAILS, ALASKA

The road and trails system of the Territory of Alaska on July 11, 937, will consist of approximately 2,040 miles of road and tramroad; 1,600 miles of sied road, and 7,000 mies of mere trail. This mileage is irrespective of roads in Mount McKinley National Park, for which funds are provided under appropri ations of the National Park Service This appropriation of $535 000, which it is expected will be supplemented by $190,000 from territorial sources, will maar a total of $725,000 for expenditure From this amount it will be necemary to make repairs to the Juneau wharf, ineluding renewal of fender and bearing pues

and deck plank, and for annual cost of lights and water, amounting to $2,000, leaving $723,000 available for maintenance of the mileage listed above. This amount will provide maintenance at $318 per mile for roads, $20 per mile for sled roads, and $6 per mile for trails. It will be impossible to conduct acceptable maintenance at less than these rates per mile.

The increase of $10,000 over the appropriation for 1937 for the maintenance of these roads and trails is made absolutely necessary not only by the increased mileage of roads, but by the fact that appropriations in the past have been inadequate for their proper maintenance, including minor improvements in the system.

Mr. SCRUGHAM. In 1937 there was an appropriation of $525,000 for this purpose, and according to the data submitted this year, $10,000 additional is allowed by the Budget. What is the necessity for that increase of $10,000?

Mr. GORDON. There are two justifications for that; first of all, a slight increase in mileage, and the second is that we have never had enough money to properly maintain the roads as they should be maintained. We figure that in Alaska to maintain the roads under the jurisdiction of the Alaska Road Commission, we should have $350 a mile for roads, scaled down, of course, to lesser amounts on trails, and sub-standard roads, but we have never been able to attain that figure.

Mr. SCRUGHAM. The item of $10,000 increase was merely an arbitrary increase allowed by the Budget Bureau?

Mr. GORDON. Yes, sir.

Mr. SCRUGHAM. What roads are repaired under this item, and of what use and value are they?

Mr. GORDON. The Alaska Road Commission is the construction agency for all roads in Alaska outside of the national forests-Tongas National Forest and the Chugach National Forest. The Alaska Road Commission maintains the roads in this enormous territory. They have slightly over 2,000 miles of road constructed there 2,300, I believe. Most of those roads you would in the States consider substandard roads, but they are purposely made substandard, to start with, and then the standard is raised as the traffic and other conditions warrant.

ROAD MILEAGE MAINTAINED

Mr. SCRUGHAM. What is the total mileage of roads maintained under this appropriation?

Mr. GORDON. Approximately 2,000 miles.

Mr. FITZPATRICK. This is just maintenance, not construction? Mr. GORDON. No, sir; there is no item in this appropriation for new construction.

Mr. SCRUGHAM. On the map there are some statistics included in the upper lefthand corner, which states the total roads included are 1,627.5 miles.

Mr. GORDON. The Bureau of Public Roads is the construction agency for the roads in these two areas, and its mileage added to the total figures, of course, would bring it up even greater than 1,600. However, I have given you the figure for the first-class roads. I can give you the exact figures in just one moment.

We had, on July 1, 1936, 2,037 miles of wagon road.

We had 1,630 miles of sled roads; we had 7,151 miles of trail, passable trail, and then of flaged trail, we had 314 miles, making a grand mileage total of 11,000 miles.

Mr. FITZPATRICK. Does it cost much to maintain the trails?

Mr. GORDON. The maintenance of the trails is not a considerable item; no, sir.

Mr. SCRUGHAM. Are there any further questions?

METHOD OF EXPENDING FUNDS FOR REPAIRS, ALTERATIONS, ETC., OF ROADS

Mr. RICH. I see the item here, no. 12, for repairs and alterations, you have $291,500 for the upkeep of the roads in this year. In the present fiscal year you have $197,450, or, practically $98,000 more for 1938. You are asking for quite a large increase in this item this year in comparison with that which you had last year.

Mr. GORDON. The difficulty there is this: Your second column, from which you secured the figure $197,000, is the expectancy figure during that fiscal year.

Mr. RICH. That is, this year?

Mr. GORDON. Yes, sir; and for this fiscal year, the complete year. You will also note that the appropriation carries an immediately available clause which means part of the appropriation last year was expended prior to July 1, 1936. So that an exact comparison of the figures in these two columns is impossible.

Mr. RICH. Why did you not average that, and only allow for the increase in mileage for that work? You are asking for the same amount of money you had last year with the exception of an additional $10,000. I do not quite understand this item in the next to the last column, this $200,000 that you had for 1937.

Mr. GORDON. That is what I was trying to explain. Let us suppose, for a moment, that the appropriation which we are now considering for 1938 were passed tonight, the Alaska Road Commission would immediately proceed to expend that fund, that they would not wait until July, use $200,000 in excess of the amount of money that was spent out of that appropriation, but outside of the fiscal year for which it was appropriated. So that adjustment must then be taken into consideration.

Mr. RICH. Do you make it a point to try to spend all of the money that you get on roads if it is appropriated?

Mr. GORDON. We make it a point to keep these roads up, and it does require money. Let us go back one step further to get the reason for this: In Alaska, in the territory in which the Alaska Road Commission constructs roads, the actual construction is not possible except in the 5 summer months of the year. So that it is necessary to make all preparations for materials, equipment, and so forth, before the break-up. If this appropriation were not available until July 1, then the time consumed in advertising for bids, and in awarding contracts, and in getting the materials located, would mean that no construction could be done this summer, and the construction on this annual appropriation would be limited to the few months before July 1 and next year. So, it is an administrative, a legal device for meeting the peculiar situation. The $200,000 is the total adjustment of that fund expended outside of the fiscal year, largely utilized prior to the opening of the fiscal year.

Mr. RICH. On the item of materials and supplies, the difference between the estimate for 1938, $115,250, and $45,000 for supplies and materials last year, there is a difference of $70,000.

Mr. GORDON. Yes, sir.

Mr. RICH. Is that same statement that you made as to repairs and alterations applicable there?

Mr. GORDON. Yes, sir.

WAGON ROADS, BRIDGES, TRAILS, AND AVIATION FIELDS IN ALASKA

Mr. SCRUGHAM. The next item is on page 498, for the construction, repair, and maintenance of roads, and so forth.

Mr. GORDON. The justification for this item is as follows:

WAGON ROads, bridges, and traILS, ALASKA

Under the Permanent Appropriations Repeal Act of 1934, it is necessary that an annual appropriation estimate be submitted under this title, all collections to the credit of this appropriation being deposited as miscellaneous receipts, and an annual appropriation equal to such receipts authorized for the same purposes as the indefinite appropriation. Receipts available for this appropriation consist of 65 percent of all moneys collected from occupation and trade licenses outside of incorporated towns in the Territory of Alaska, and expenditures therefrom are authorized for the construction and maintenance of wagon roads, bridges, and

trails in Alaska.

For the fiscal year 1938, it is estimated that receipts of $130,000 will be available, and the entire amount is requested for appropriation. This sum will be used entirely for maintenance of the existing road system, to supplement the regular annual appropriation for these purposes.

Estimated expenditures for 1938 and 1937, and actual expenditures for 1936, are as follows:

FUNDS CONTRIBUTED FOR IMPROVEMENT of roads, bridges, and traILS, ALASKA

(TRUST FUND)

In accordance with the provisions of the Permanent Appropriations Repeal Act, 1934, this fund is classified on the books of the Treasury as a trust fund, and all moneys accruing thereto are appropriated for disbursement in compliance with the terms of the trust.

Contributions in this fund are received mainly from the Territory, but occasionally contributions are received from private sources when the construction or improvement of a road is necessary to provide access to the property concerned. As the purpose for which contributions are to be used is generally specified by the Territory or other contributor, any estimate as to probable projects on which funds will be expended is no more than a conjecture. For the fiscal year 1938, it is anticipated that $60,000 in contributions will accrue to this fund from the Territory, and it is estimated that this sum will be available in its entirety for maintenance purposes. No other contributions are expected for either maintenance or construction of projects.

Mr. SCRUGHAM. This also includes aviation fields, which, apparently was not in the preceding estimates. This appropriation is required by the Permanent Appropriation Repeal Act of 1934?

Mr. GORDON. Yes, sir.

Mr. SCRUGHAM. This consists of 65 percent of all occupational and trade-license funds derived outside of incorporated towns?

Mr. GORDON. Yes, sir.

Mr. RICH. Why do you have on page 497 an item of $535,000, and on page 498 is an item of $130,000, and the wording is practically the same, for the repair and maintenance of roads?

Mr. GORDON. The explanation is, I believe, as follows: The item which we have just considered, namely, $535,000 is a direct appropriation by Congress for this purpose The item of $130,000 comes from special funds which will be turned into the Treasury. There is a fund that is known as the Alaskan fund. The Alaskan fund is derived from Federal taxes, Federal license taxes upon businesses and occupations in the Territory. That money is collected by the clerks of the courts, and turned in to the Treasury, and the act which created this fund with amendments specifies the use to which the funds should be put. We discussed a moment ago the 25 percent going to schools. We are now discussing 65 percent which, by law, is to be used for roads, bridges, and trails. This is a special fund in the Treasury of the United States. Prior to the repeal of the Permanent Appropriation Act of 1934. This fund was a continuous fund, and automatically reverted to the Alaska Road Commission, but because of the Permanent Appropriation Repeal Act, it is necessary for us each year to estimate the amount in this special fund, and by act of Congress to reappropriate it for the use specified by law.

Mr. RICH. Does not the government that you have set up in Alaska have access to the funds set up there for the purpose of doing the things that Alaska wants to do for its own benefit, or do you have to come to Congress and get permission to do things you want to do because your funds are so tied up you cannot use them?

Mr. GORDON. This particular fund or funds in general?

Mr. RICH. I am trying to get at the point now of what authority the government of Alaska has, the set-up that you have up there? Do we tie up those fellows so that they cannot do anything themselves. Do you have to ask permission of Congress every time you want to do anything?

Mr. GORDON. There are two jurisdictions in the Territory of Alaska, one is Federal, and the other is Territorial. The Territory was given legislative powers in 1912. It has its own Territorial Legislature. It is in session now. That Territorial Legislature goes through the usual legislative steps, within the enabling act. It goes ahead and levies taxes and appropriates its own funds for Territorial purposes, and expends them without reference to Congress, except, of course, with reference to the enabling act, which is similar to that of any Territory or any State.

Those funds, Territorial funds, expended by Territorial authorities and officers, have no connection with the funds that we are now discussing, and this fund of $130,000, made available for the Alaska Road Commission, although in theory and in practice a Territorial fund, since it is derived out of the Territory, you might say, is returned to a Federal agency for the use for which it was set up in the beginning. Mr. FITZPATRICK. You used the words "aviation fields" in there. Mr. GORDON. Yes, sir.

Mr. FITZPATRICK. What percentage of that $130,000 would be spent for aviation purposes?

Mr. GORDON. We do not have it segregated in that manner at the present time, and in all probability a small percentage of it.