Sen. Gruelling and Alaska Steam Have
Words Over Proposed Rate Increase
Sen. Gruening Says
Skinner Family Realize
Big Profits From Alaska
Associated Press Special Service
WASHINGTON iffi — Sen. Er
nest Gruening says the Alaska
Steamship Co. is again seeking
Alaskan freight rate increases al
though it has been making sub
stantial profits.
Gruening said in testimony be
fore the Senate Commerce Com
mittee that Alaska estimates the
shipping firm made between 14
and 15 per cent profit on its in
vestment for 1958 and 1959.
“The fact is,” Gruening said,
“that the Alaska Steamship Co.
is a family - owned corporation
which has widely diversified in
terests, many of which have been
financed, directly or indirectly
by the people of Alaska.
“During the 16 years (1944
1959) in which the Skinner fam
ily has controlled the company,
the rate payers of Alaska have
contributed in excess of $9 mil
lion in profits and gains to this
family.
“Further, under the benevolent
care of the Federal Maritime
Board, assets of this company—
paid for by Alaskans—have been
repeatedly used for additional
private gains.”
Gruening said that in the'
course of its investigation of the
current rate proceeding, counsel
for the state have found that per
sonal profits of $361,311 accrued
to David E. Skinner, president of
the company, and to Robert J.
Behnke, his brother-in-law, “from
an intricate maneuver which they
financed by funds borrowed from
a wholly owned subsidiary of the
corporation—the Alaska Termina
and Stevedoring Co."
“The exploitation of Alaska
rate payers has been going on
for a long time without challenge
by the Federal Maritime Board or
its predecessors,” Gruening said.
Japs Granted Permission to
Fly Into Soviet Territory
TOKYO W) — The Transporta
tion Ministry says the Soviet
Union has granted Japan per
mission to fly its first aircraft
into Soviet territory since World
War II. The plane will take 30
Japanese to Siberia next month
to visit graves of relatives killed
in the war.
Alaska Line Official
Contends GrueniBg Attack
Was Politically Inspired
SEATTLE UP> — An Alaska
Steamship Co. official contended
today that criticism of company
financial operations by Sen. Er
nest Gruening was politically in
spired.
R. J. Behnke, vice president,
issued a statement in absence of
company president, D.E. Skinner.
He replied to testimony by Sen.
Gruening before a Senate com
mittee.
“The recent remarks by the
junior senator from Alaska, con
cerning the Alaska Steamship Co.,
were part of an 11-page statement
some of which chairman Magnu
son permitted him to read at a
Senate Commerce Committee
hearing on July 19.
“These charges have been made
before and doubtless will appear
again, but the public is entitled
to know that these matters have
been fully disclosed by the com
pany and investigated by the Fed
eral Maritime Board.
“Those in Alaska who have
witnessed the conduct of this
man since he was imposed on
the people of Alaska as their non
resident governor have lived
with these tactics of ‘using’ an
office of public trust to forward
personal aim.
“The real purpose of these at
tacks should be obvious to all
fair-minded Alaskans. The junior
senator from Alaska must stand
for re-election in 1962. Any per
son, any business, any industry,
whether resident or non-resident
which can be used to make cam
paign fodder can expect to bear
the boot marks of his political
| conduct in his overwhelming de
sire for re-election. We do not ex
pect these attacks to diminish
either in frequency or intensity,
but we think it only appropriate
that the people of the area this
company has served for 65 years
should consider the source and
purpose of these querulous re
marks.”
Caps were first introduced into
the United States during the Civil
War, and were worn by Johnny
Reb as well as Yankee. Both sides
copied them from the French
military “Kepi.”
I GAMBELL
NEWS LETTER
!
By Clarence Irrigoo
Snow fell morning of July 4th, j
but no one seemed to be bothered I
with it. Games were carried out
in spite of the snow and low tem
perature. It was understood that
Savoonga postponed their cele
bration of Independence Day, be
cause they were getting their
boats and equipment ready for
the arrival of the North Star.
Ed Shepard of Alaska Fur Fac
tory from Anchorage is busy with
several men helping getting his
building and equipment ready for
a “Sewing Center” in Gambell.
Because his freight from Seat
tle took all the available space on ;
the North Star, only the fuel oil !
was shipped to Gambell and Sa
voonga Presbyterian churches.
Two years ago when Alaska Fur
Factory first requested permis
sion to set up a sewing center in
Gambell, permission was granted
by the Village Council on the
grounds that nothing else be set
up other than just a “sewing
center.”
Wycliffe Bible Translaters Rev.
and Mrs. David Shinen were in
Savoonga for three days last
week and for the first time un
veiled their work on Eskimo dia
lect, particularly for those of St.
Lawrence Island Eskimos. Both
spoke understandable Eskimo in
I front of people assembled to hear
them. In only two years time
much had been accomplished,
stated Mr. Shinen. When the as
sembly was asked for “any ques
tions,” there was none, however,
one said that the alphabet writ
ten on the blackboard did not
have the letters “b” and “d.”
Mr. Shinen explained that when
the work is completed, there will
be no need for the two missing
letters.
Who knows that the birds of
the air can hear what the law
makers are saying? I don’t, but
eider ducks are flying in flocks,
and flocks over the village of
Gambell than ever before ever
since they flew up from the south.
Why? Did someone tell them that
the natives will not shoot them
on St. Lawrence Island? If there
are any law-abiding citizens in
America, you find them among
the Eskimos in Alaska.
Another cold winter ahead.
Fuel oil delivered to the local
native store this summer is not
going to last through next spring
WHflT DIFFERENCE IS THERE
BETWEEN WHITE ^ND BLRCK
_PEPPER ?_
e e
mU/W/, < [WHITE,-4 BUoft
_. v 1 pepper! pepper!
THE AURQEsr hriu<3tome9 l j _ 1
KNOWN...# INCHES IN CIRCUM- >- Vi?PagflB» -<
FERENCE....FEU IN NEW SOUTH WHITE PEPPER 16 WEU
WPLES! (1B47) _| RIPENED BLACK PEPPER f I
I ARE GULLS USEFUL BIROS ? | WHT WPS MAINE 50-CALLED?I
-P-7—*■ -—
L_.__ __immmmig
VES! ThiV ABE HELPFUL AS
SCAVENGERS WHICH FOLLOWSHIPS kq,--—— ■> „ j
AT SEA! By EATING INSECTS THAT $£CAUS6 IN 1H6 CHARTS . ^..ANTPP j
RUIN CROPS, GULLS ARE FRIENDS BV CHARTS I IN IG3P, IT WAS
U OF FARMERS /_ SS^fSS&mSfi^P!
Hurricane Anna Roars
Into British Honduras
MIAMI, Fla. UPI — Hurricane
Anna roared into British Honduras
today, threatening the small Cen
tral American country with dan
gerous flash floods.
The center was estimated over
the mountains of the southern part
of the country. It moved inland in
the Mango Creek area about 75
miles south of Belize.
Highest winds were just barely
hurricane force at 75 miles an
hour in squalls over a small area
near the center. The big threat was
rain pouring out of the storm. The
Miami Weather Bureau said flash
floods were likely in hilly and
mountainous areas.
The year's first hurricane raked
the British Honduras coast with
high tides reaching seven to 10
feet. These were expected to sub
side late today.
again, stated one in the store. Last
winter oil was borrowed from the
National Guard, Air Force and
Public Health Clinic. With only
the National Guard oil returned,
and not the Air Force and the
Clinic, there is hardly enough oil
to last through next spring or
next July 1962!
One resident of Gambell tried
in vain to secure fuel oil from
Standard Oil Co. of Nome last
spring. The main reason the re
quest was turned down was be
cause, someone told the Standard
Iil that the North Star is going
to heavily stock Gambell Native
Store with fuel oil this summer.
Too bad there is not enough oi
everything again. Those of us
who listen to the “Music Coun
try Style” over KICY will no
much this winter “pull off ou:
•boots and mukluks” and “take i
easy.”
Fire Destroys Haines
Lumber Co. Sawmill
HAINES — Fire which broke
out late last night completely
destroyed the Haines Lumber Co.
Sawmill on Jones Point, this
southeast Alaska community’s only
major, year-round industry.
Unofficial estimates placed the
damage in excess of $200,000.
Firemen from Haines and neigh
boring Port Chilkoot were hamp
ered in their efforts to fight the
blaze by inability to pump water
from nearby Chilkat Inlet, be
cause of an outgoing tide.
The sawmill, which normally
employs approximately 30 men,
was temporarily closed while a
new gang mill was being installed.
| The new equipment was lost in
the fire.
The mill was preparing to start
work on a Japanese order for two
million board feet of lumber.
The blaze was believed started
by a short in electrical wiring.
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