the war, our population mushroomed and many of our statistics have been lost. However, the number of airplanes operating from our municipal airport has likewise mushroomed, and we believe when the time comes that the population of the city is known and the number of planes based here is known, we will again be in a position to substantiate our claim that we are truly the most air-minded city under the American flag.

This city is well aware of the importance of aviation in Alaska to Alaskans and the Nation. It is ready and willing to do its full share in the development of proper airport facilities. It just happens, however, that the needs of Anchorage are far beyond the capacities of this city to meet.

The city of Anchorage has a population generally estimated at approximately 10,000, with an additional 2,500 or more residing outside the corporate city limits. In the population figures of 1940, the city had 3,488 persons. Late last summer a reappraisal of all real property in the city, conducted under the auspices of the common council, resulted in a valuation of $15,324,973. Personal property added $3,007,600 to this valuation, making the total assessed valuation of the city $18,332,573.

This, we believe, represents a fair value of the property of Anchorage as of a year ago. It appears possible that upon completion of construction now under way several hundred of thousands of dollars will be added to this total taxable assessment this fall. Under the organic act of Congress, which serves as Alaska's constitution, the city is permitted to levy not more than 20 mills per dollar of assessment valuation annually for municipal operation. The city is experiencing great difficulty in operating upon this limited revenue despite the fact that it also has additional revenues derived from the sale of electric power, telephone service, and other services for which special charges are assessed.

The bonded indebtedness of our city as of the close of 1946 totaled $1,522,000. This year the voters of the city have authorized the issuance of an additional $2,200,000 in bonds to finance various essential public improvements. When these bonds are issued, our public debt will total $3,733,000, or 20.3 percent of the assessed value of all the real and personal property in the city available for taxation.

Thus, it is clear that with this heavy debt load in immediate prospect, some years must elapse before any further substantial debt obligation may reasonably be undertaken by this community. The voters authorized the $2,200,000 worth of bonds for the expansion and improvement of municipal facilities which are essential to accommodate the residents who are already here and those who are still coming. These include a new water system, additional power distribution facilities, a new telephone system, extension of water mains and sewer systems, paving, additions to the city hall, and the construction of additional municipal facilities. All these needs are a natural result of a growth of 3,500 population in 1940 to ten or twelve thousand at present.

Included in this bond authorization is an item of $250,000 of general obligation bonds for the improvement of the municipal airport facilities. In relation to the many general problems confronting the city, I believe that it is indisputable that the people of the city are very generous in authorizing $250,000 worth of their limited bonding power for use in meeting the airport problems. This amount certainly represents the absolute limit of the ability of our citizens to participate in financing a public airport facility whether presently or within the predicable future.

However, the airport requirements to accommodate the air traffic flowing to and through Anchorage are far beyond this limited ability of the city. Even with the aid of the Federal Airport Act, we could not finance the required facilities. The people of the city have demonstrated their willingness to do all that they can, but the need for an airport sufficiently large to accommodate the national and international air routes leads to the inescapable conclusion that the Federal Government, and only the Federal Government, could finance this undertaking.

In view of the fact that the city is presently operating with a deficit in its general fund, and the common council is searching for new sources of revenue with the view of balancing the budget, it is obvious that the city could not assume the financial responsibility of operating or maintaining the new airport that is required here. Due to the many peculiar features of our air transportation, it is highly questionable that this airfield would be self-supporting, at least for the first few years. It would be unfair to the residents here to saddle them with this deficit, in view of the many other problems they are already attempting to remedy.

ALASKAN AIRPORTS AND INTERNATIONAL

AVIATION FACILITIES

SATURDAY, SEPTEMBER 6, 1947

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE,
Fairbanks, Alaska.

The hearing before the Senate Interstate and Foreign Commerce Committee was held in the district courtroom, fourth judicial division, at Fairbanks, Alaska, September 6, 1947, at 10 a. m., Senator Allen J. Ellender, of Louisiana, presiding.

Senator ELLENDER. The meeting will be in order. I am sorry to advise that Senator Capehart, who was to preside today, is ill. He has a serious throat infection, and he can't be present, and he has asked me to preside. Senator Cain, who was also on this committee, had to leave this morning for Seattle.

The purpose of the meeting is to hold hearings on pending bills before the Congress. There is one bill-S. 1371-which authorized the construction of a class 4 airport for the city of Fairbanks, Alaska, a public highway and bridge from the city of Fairbanks to the location of the airport-introduced by Senator Magnuson, from Washington. Then there is a companion bill, H. R. 3509, which is now in the House, and is on the Union Calendar, No. 515.

Now, the two bills that I have just mentioned affect the city of Fairbanks. Then we have, in addition to the two bills I have just mentioned, another bill introduced in the Senate by Senator Cain from Washington, bearing the number S. 1396, which authorizes—or the purpose of which is to authorize-the construction, protection, operation, and maintenance of a public airport in the Territory of Alaska. There is a companion bill in the House, introduced by Mr. Howell, authorizing the construction of an airport for the Territory of Alaska, in the same manner as I have indicated for S. 1396.

A few days ago the committee held hearings at Anchorage on the proposals that I have just mentioned, and the purpose of this sitting is to hear from the citizens of Fairbanks.

Now, the first witness this morning is Mr. Nordale. Will you come forward, Mr. Nordale? Give your name, for the record, and present position.

STATEMENT OF A. H. NORDALE, MAYOR OF FAIRBANKS, ALASKA

Mr. NORDALE. My name is A. H. Nordale. I am the mayor of the town of Fairbanks and am appearing for the municipality. Senator ELLENDER. Mr. Nordale, have you a prepared statement? Mr. NORDALE. I have not, sir. What I have to say will be oral.

37

Senator ELLENDER. Are you familiar with the proposed legislation that is now pending in the Congress, which I have described to this audience a few minutes ago?

Mr. NORDALE. I am, sir.

Senator ELLENDER. I would like to hear first from you with respect to the bill to authorize a class 4 airport for the city of Fairbanks.

Mr. NORDALE. Mr. Chairman, in order that we may have a clear understanding of the bills before us, I would like to summarize the title. You have given them by number, and I would like to give the summary of the title. One would authorize the construction, protection, operation, and maintenance of a public airport in the Territory of Alaska, with an appropriation of $11,000,000 to be authorized. That is the airport bill that I believe you had hearings on in Anchorage. Senator ELLENDER. Well, the bill provides for an appropriation of $8,000,000.

Mr. NORDALE. Pardon me, sir. Eight million. The other would authorize the construction of a class 4 airport for the city of Fairbanks, Alaska, a public highway from the city, or a bridge to the airport, with an appropriation of $5,000,000 to be authorized. This airport, upon completion, would be transferred to the city of Fairbanks, without charge, and thereafter the city would be solely responsible for its maintenance and operation. The bridge or highway would be transferred to the Territory to be maintained by the Territory.

It is obvious, Mr. Chairman, that we are sorely in need of a class 4 airport for Fairbanks. It might be well to outline the situation, the city's obligations to meet it under the bill, and the implications which would have a future bearing.

The existing airport, which is municipally operated, is known as Weeks Field.

Senator ELLENDER. How many runways have you there?

Mr. NORDALE. One.

Senator ELLENDER. What is the length of it?

Mr. NORDALE. Approximately 5,000 feet.

Senator ELLENDER. Can it accommodate these large C-54's-the four-engine planes?

Mr. NORDALE. No, sir; the DC-3's are the largest.

Senator ELLENDER. I presume that is why you desire a larger airport?

Mr. NORDALE. Yes, sir.

Senator ELLENDER. To accommodate the largest planes that land here?

Mr. NORDALE. That is one reason. The field, originally, was a recreation center within the municipal limits of the town. As aviation became established, it took over the recreation park; and, automatically, the field grew. It is an unimproved field in the sense that it is partially graveled, and it is based on river silt. There are many hazards adjacent to the field. Buildings have encroached upon it, and the town has been unable to protect the field, in that it has not owned all of the adjoining property.

Senator ELLENDER. From that, I assume that should a new airport be authorized, the same location cannot be used?

Mr. NORDALE. It could not.

Senator ELLENDER. Well, have you a location in sight that has been offered to the Government?

Mr. NORDALE. We have a tentative location. We have explored five locations; four have been ruled out through hazardous terrain, or through conflict with military establishments. There is one which we have designated our No. 3 project that would be contemplated in this case. It, however, is located across the Tanana River, and considerable investment would be required in order to bridge the river. The river, at that point, is a meandering stream and is very wide. Senator ELLENDER. At whose request did Senator Magnuson introduce this bill?

Mr. NORDALE. At the request of Delegate Bartlett.

Senator ELLENDER. Well, I notice in that bill it is contemplated, as you indicated a moment ago, that after the port is built by the Government, that it be turned over to the city of Fairbanks, and the city of Fairbanks would then operate it and pay all costs. How would you expect to do that, sir?

Mr. NORDALE. Mr. Chairman, we couldn't hope to do it. We feel that Fairbanks is not in a position to accept the responsibility of caring for, maintaining, and operating a class 4 field in the location designated.

Senator ELLENDER. Well, why was such a bill introduced, may I ask? Were you consulted before it was introduced?

Mr. NORDALE. We were not. We had been working on the Federal Airport Act. We had been seeking a location that would be sufficiently advantageous that the city, under the 25-percent matching fund, could construct an airport that would eventually develop into a class 4 airport. We found it was impossible to locate such a site. As I said before, there was but the one location left, and that was too costly for us to consider. We couldn't consider the maintenance of the airport.

The word "care" would probably be synonymous with the word "protection" in the bill establishing a public airport; also synonymous with the word "protection" in the Federal Airport Act, which would cover protection from floods and other hazards.

The community, I may point out, is small. We have, probably, 7,500 population. We have a taxable valuation of less than 12 mills, and we are limited to a

Senator ELLENDER. You mean within the corporate limits?
Mr. NORDALE. Within the corporate limits.

Senator ELLENDER. Less than 12 mills?

Mr. NORDALE. Less than 12 mills. Our tax valuation last year was eleven-million-eight-hundred-some-odd dollars. Under the organic act we are only permitted to assess at 20 mills. Our revenue within our corporate limits is barely sufficient to maintain the normal operating costs of government.

Senator ELLENDER. What is your present cost of budget to operate the city?

Mr. NORDALE. Our present budget would be $265,000.

Senator ELLENDER. And is it sufficient?

Mr. NORDALE. We make the budget meet our revenues. There are many things we would like to do-many improvements we would like to do many improvements we would like to make, but we feel that we just do not have the money to carry them out.

Senator ELLENDER. Aside from your 18 mills, as against your assessed property, what other sources of revenue have you in the city? Liquor licenses?

Mr. NORDALE. Liquor licenses. We have what are termed "refundable licenses." The corporate governments are returned certain liquor licenses, mercantile licenses, and so forth. Then, we have fines and other assesments.

Senator ELLENDER. All of which, together, aggregate this amount indicated as being the amount now collected to operate the city? Mr. NORDALE. That is true, Senator.

Senator ELLENDER. Are there any other sources of taxation you have not imposed as yet on the people in this community?

Mr. NORDALE. There are other sources that might possibly be tapped, but we are hesitant to do it because it really is not-those sources would be burdensome to the people who are now paying a tax and would not be fair to them, in that we have a large contiguous population that is paying no tax.

Senator ELLENDER. Have you any idea of what it would cost to operate a class 4 airport?

Mr. NORDALE. I have nothing on which to base operation costs. We know that any building costs, Tabor costs, and so forth, are extremely high.

Senator ELLENDER. Well, would it be possible for the city, in any way, to assist or pay over a certain percent of the cost to operate the airport?

Mr. NORDALE. I wouldn't be in a position, Senator, to pledge the city to any such program at this time.

Senator ELLENDER. It is not a question of pledging. I am asking you if, in your opinion?

Mr. NORDALE. I believe not.

Senator ELLENDER. So, if the Federal Government were to build an airport, it would be necessary for the Federal Government to pay for the upkeep and everything connected with its operation?

Mr. NORDALE. That would be true, Senator.

Senator ELLENDER. Anything further you desire to state?

Mr. NORDALE. Just a word or two concerning the future angle. We feel that a class 4 airport is essential to our immediate needs; that it woud be a wise policy to locate the strip with a view to further expansion. While there is no contention to the preferred location of the public airport, we do hold that a community having a compact central location should have a public airport, the same as we hold that the Fairbanks Airport will be on at least one, if not more than one, international air routes in the not too distant future, and there is good reason for the establishment of two public airports in the Territory of Alaska.

Senator ELLENDER. That seems to be the same view expressed by the people of Anchorage-that there ought to be at least one, and probably two, and I think quite a few witnesses testified to that effect. Anything further, sir?

Mr. NORDALE. I have nothing further to submit.

Senator ELLENDER. The next witness is Mr. James Dodson. Will you give your name in full, for the record, and your present occupation?