Sen. Capehart Hints Probe of Loans To
U.S. Tin May Be Broadened To Cover
Entire Govt. Defense Loan Program
WASHINGTON, UP)—Sen. Cape-"
hart (R-Ind) hinted Thursday a
probe of government loans for an
Alaskan tin operation may be
broadened to cover the entire gov
ernment defense loan program.
Capehart is chairman of the
Senate-House committee on de
fense produotion, set up to keep
an eye on operations under the
Defense Production Act of 1950,
which also authorized the defense
loans to speed mobilization after
the Korean war started.
Charles W. Merrill, assistant
chief of the Minerals Division in
Ithe Bureau of Mines, told the
committee Wednesday an initial
$375,000 government-insured loan
to the U.S. Tin Corp. was granted
in 1951 despite a “very, very
sketchy” loan application. He
said it was based on an unsworn
certificate of the corporation’s
assets.
Capehart told newsmen in ad
vance of the session that “you
bet” there have been poorly
placed loans and “wrongdoing” in
operation of some two billion dol
lars worth of govei'nment-insured
and direct government loans to
stimulate defense production. He
did not elaborate.
The government - insured loan
of $375,000 to the U.S. Tin Corp.
has since been expanded to a
total of three million dollars, all
but the first $375,000 in direct
federal loans. So far, Capehart
said, nc considerable output has
been achieved from the U.S. Tin
operation.
Merrill told the committee that
he personally approved the first
$375,000 loan. He testified the
loan application was supported by
Kenneth Kadow, then attached to
Arctic Sanitary Service
Phone RED 181
the office of former Interior Sec
retary Oscar Chapman with re
sponsibility for checking all Alas
kan developments connected with
the Interior Department.
“Almost exactly the time the
application was recommended,”
Merrill said, Kadow left the gov
ernment to become a consultant
to and later president of U.S. Tin.
Commitee counsel Harold War
ren asked Merrill whether he was
“shocked” at Kadow’s switch. The
witness replied that would be the
correct word, but added that he
knew nothing illegal about Ka
dow’s resignation from the Inter
ior Department.
Sen. Capehart, chairman of the
joint committee, told newsmen in
advance of the hearing that there
have been reports that the Lost
River mine project, located 90
miles northwest of Nome, cost
far more than it is worth.
CHANCE FOR A BARBER
AT THE U. OF ALASKA
There’s an easy step for some
one from barber’s college to the
University of Alaska, Neil W.
Hosley, University dean, announ
ced recently.
He explained that the institu
tion needs a student barber due
to the recent death of Joseph
Hunt, junior student in education
and University barber.
The shop is on the lower floor
of the Eielson Memorial Building.
There is a barber chair in the
shop. Dean Hosley said Hunt’s es
tate is offering the other barber
equipment for sale.
Interested persons may contact
Dean Hosley, University of Al
aska, College, Alaska.
SCISSORS SQUEAK?
When your sewing scissors
squeak or bind, rub each blade
with the fingers. The natural oil
in your hands give the scissors
needed lubrication without risk
ing oil drops on your material.
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Food Costs Continue
To Rise In Alaska
Prices of 30 food items in 5
Alaskan cities increased sharply
during the 3 months March 15
June 15 according to a survey
just completed by Hugh A. John
son of the Alaska Experiment Sta
tion at Palmer, Alaska.
Greatest percentage rise occur
red in Palmer (1.8%) followed by
Anchorage (1.4%), Ketchikan with
(1.2%), Fairbanks (1.3%) and Ju
neau (0.6%). However, compared
to June 1953, Palmer food prices
increased 1.9%, Fairbanks 2.6%,
Anchorage 5.3% and Juneau 6.8%.
Coffee has continued the sky
rocketing upward spiral begun
earlier in the year. It has risen
40% at Ketchigan in 9 months
and 30% in Juneau, 29% in An
chorage, 27% in Palmer and 23%
in Fairbanks during the past 12
months.
The report seems to indicate
that another round of price rises
in most major food categories is
on the way.
• •
Here’s one place
where today’s dollar
goes further
In the fondly-remembered time of the nickel
trolley and the 25f$ T-bone, gasoline for dad’s
1925 model cost about 18^ a gallon (excluding
taxes). Sounds like a bargain—yet it really
cost more than today’s gasoline. The reason is
clear when you keep this fact in mind: You
fill your car’s tank with gasoline, but what
you’re actually buying is mileage. Naturally,
you’d rather pay $1 a gallon for gas that gave
you 100 miles a gallon than buy 10C gas that
delivered only 5 miles to the gallon. And that’s
why today’s gasoline costs less than motor
fuel of 1925 ... it gives you more miles to
the dollar. Research by companies such as
Standard Oil Company of California has im
proved gasoline spectacularly over the years.
This better motor fuel made more efficient
auto engines possible, and together they give
you up to 50% better mileage than motorists
got in the ’20’s. On top of that, competition
between oil companies has helped to hold down
gasoline prices. Since 1925, they’ve risen only
20% (excluding taxes) while food has gone up
70%, clothing 63%, and the cost of living 53 %.
Compared to practically anything else you
buy, gaspline is a bargain. Your money goes
further when it goes for today’s finer gasoline
that delivers more miles to the dollar.
STANDARD OIL COMPANY OF CALIFORNIA
5 ^€€i/lb c^/Uonniny a/tettd io betve you SeUet
• •