A majority of the joint board shall constitute a quorum for the transaction of business. (f) Orders of the joint board, shall be enforcible in the same manner as provided in section 16 (12) of the Interstate Commerce Act, and reviewable as provided in title 28, United States Code, sections 2321-2325, inclusive. (g) Those provisions of the Interstate Commerce Act, as amended, the Shipping Act, 1916, as amended, the Intercoastal Shipping Act, 1933, as amended, the Act of July 7, 1958 (72 Stat. 339), providing for the admission of Alaska into the Union and the Act of March 18, 1959 (73 Stat. 4), providing for the admission of Hawaii into the Union are hereby superseded insofar as they are contrary to any provision of this Act. (h) The initial joint board constituted under this Act shall examine into means and methods for fully attaining the purpose of this Act and shall report its recommendations for additional legislation necessary for such purpose to the President and to the Congress upon the termination of one year from the date of enactment of this Act. I have been told that there will be witnesses who desire to be heard on bills which have been introduced in the Congress relating to the establishment of a ferry service in southeastern Alaska. The committee will be glad to hear such witnesses; and, as I suggested earlier, if other witnesses want to be heard on other matters, the committee will be glad to record that testimony. And now I take pleasure in inviting Mayor Hardcastle to testify. We welcome you, Mr. Mayor. Would you please, Mayor Hardcastle, introduce yourself, in your capacity as mayor, and give your initials, and otherwise identify yourself. STATEMENT OF HON. RICHARD HARDCASTLE, MAYOR OF KETCHIKAN, ALASKA Mayor HARDCASTLE. Certainly. Thank you very much. Senator BARTLETT. I wish, I would state to you, and I will make this request general, that in each case the witness give his mailing address, which will serve many useful purposes, one of which being that he will be sure to receive promptly a copy of the testimony, when it is printed, so that his words will be in his possession, preserved in print forever. Mayor HARDCASTLE. Thank you, Senator Bartlett. I am Richard Hardcastle. My mail usually comes to R. M. Hardcastle, 321 Dock Street, Ketchikan. I am the mayor of Ketchikan, and speaking on behalf of the city council. First, I want to say that we accord you a grand welcome to Ketchikan. We are glad that you could come, both you and your party. It is a pleasure to have you. Senator BARTLETT. Thank you, Mayor. Mayor HARDCASTLE. The city of Ketchikan appreciates the opportunity of making this statement on general transportation problems and to voice its opinion on several bills now under consideration by the Congress. First, for the record, Ketchikan is an incorporated city of the first class with a population of 8,000 and the trading center for an additional population of about the same number. Its principal industries are based on the fisheries and forest products of the area. The fishing fleet, canneries, and the cold storage businesses of Ketchikan harvest and process more salmon and halibut than anywhere else in Alaska. The pulp and lumber mills make Ketchikan the largest logging and forest products manufacturing center in Alaska. Ketchikan is located near the southern end of Revillagigedo Island in the southeastern or Panhandle region of the State. The island is 1,120 square miles in size and located 45 miles north of the AlaskaCanada border and 660 miles northwest of Seattle. The nearest rail and highway connection is Prince Rupert, British Columbia, about 90 miles to the south. Except for Canadian summer tourist cruise ships, air transport provides the only transportation for passengers. There is no airport on Revillagigedo Island. The city is directly served by amphibious-type aircraft. The nearest landing field is about 20 miles away, and located on Annette Island. Pacific Northern Airlines and Pan American World Airways provide daily scheduled air service to Annette Island. Ellis Airlines provides daily flights to Annette Island as well as service to Juneau and other points north of Ketchikan. Alaska Coastal Airlines also provides daily service between Juneau and Ketchikan. The Alaska Steamship Co. provides weekly freight sailings into and out of Ketchikan. The Ketchikan Merchants Charter Association and Dahl Transportation Co. also provide weekly charter freight sailings into and out of Ketchikan for its members, utilizing ships of 150 tons or under. There is a need for surface transportation of passengers and motor vehicles throughout southeastern Alaska to connect Ketchikan and other cities and communities with the Alaska highway system at Haines-Skagway on the north and the Canadian highway system at Prince Rupert, British Columbia, on the south. The rugged terrain and island locations of these cities and communities make conventional land highway construction uneconomical. This transportation prob lem has been the subject of study by many agencies and individuals who are convinced that the establishment of ferry service is the most feasible way to provide surface transportation to this important area of Alaska. The city of Ketchikan joins in this opinion. In order to initiate ferry service for southeastern Alaska, two bills have been introduced in the Congress and the city of Ketchikan urges prompt, favorable action on these bills by this committee and the Congress. S. 2661, to amend title 23, United States Code, to provide for participation of Federal-aid highway funds in the construction of ap proach roads to ferry facilities on the Federal-aid system, is essential to providing a connection between the ferry vessels and highway system. Inasmuch as the ferry service will essentially be a part of the Federal-aid primary or secondary highway systems through this area of Alaska, the approach roads become a logical part of the system and should be eligible for participation of Federal-aid highway funds. With the passage of S. 1956 and S. 2661, the establishment of a ferry system, initially utilizing three 18-knot ferry vessels with a capacity for approximately 100 motor vehicles and 500-700 passengers, to connect the Alaska highway system, at Haines-Skagway, and Canadian highway system, at Prince Rupert, British Columbia, is economically feasible. This service will not only benefit Alaska but also the other States because it will attract thousands of tourists and stimulate trade and commerce both within Alaska and between Alaska and the other States. Therefore, the city of Ketchikan again urges the passage of S. 2661 and S. 1956 with an appropriate amendment to overcome the aforementioned objection of the Secretary of Commerce. S. 1956, to amend the Merchant Marine Act, 1936, for the purpose of providing with respect to the requirements for the operation of subsidy constructed vessels that certain vessels shall be considered as operating in foreign trade, is essential to qualify the ferry vessels for construction subsidy and loans under the provisions of the Merchant Marine Act of 1936. These ferry vessels would be operated in the Alaska-British Columbia, Canada trade for all of the miles logged and thereby be considered to have been operated exclusively in foreign trade under the provisions of S. 1956. The secretary of Commerce has objected to the passage of S. 1956 because of his contention that vessels constructed under the provisions of this bill, were it enacted into law, could compete in the domestic trade after having operated for the majority of the miles logged in the Alaska-British Columbia, Canada trade. It would appear that this objection could be overcome by an amendment to S. 1956 requiring that vessels be operated exclusively in the Alaska-British Columbia, Canada trade. We urge the adoption of an amendment by the committee to remove the objection of the Secretary of Commerce but retaining the original objective of the bill. With the passage of S. 1956 (and S. 2661) the establishment of a ferry system, initially utilizing three 18-knot ferry vessels with a capacity for approximately 100 motor vehicles and 500 to 700 passengers, to connect the Alaska Highway System, at Haines-Skagway, and Canadian Highway System, at Prince Rupert, B.C., is economically feasible. This service will not only benefit Alaska, but also the other States, because it will attract thousands of tourists and stimulate trade and commerce both within Alaska and between Alaska and the other States. Therefore, the city of Ketchikan again urges the passage of (S. 2661 and) S. 1956 with an appropriate amendment to overcome the aforementioned objection of the Secretary of Commerce. The City of Ketchikan would like to take this opportunity to support the passage of S. 2669, to extend the exemption from U.S. Coast Guard inspection cargo vessels under 150 tons engaged in the southeastern Alaska trade. Such vessels now engaged in the trade provide additional freight sailings, call on smaller ports, and give special services to their customers, not otherwise available. For these reasons the city of Ketchikan urges favorable action by this committee on S. 2669. This statement is signed by myself, R. M. Hardcastle, for the city of Ketchikan. Senator BARTLETT. Thank you, Mayor Hardcastle. Have you and/or the city government given consideration to the proposal before the committee, as incorporated in S. 2452, to establish a Joint Board in respect to Alaska transportation-a Joint Board, to be composed of representatives of the Civil Aeronautics Board, the Federal Maritime Board, and Interstate Commerce Commission? Mayor HARDCASTLE. No, we have not given any consideration to that. Senator BARTLETT. As you are perhaps aware, the Federal Maritime Board, under the terms of the statehood act, continues to have jurisdictional authority over maritime transportation. A proposal was subsequently made that the ICC be substituted, and then a Joint Board proposal was made. Do you have any personal views on how this should be handled? Mayor HARDCASTLE. No, I do not, but we did consider the subject of the ICC, and felt that we didn't want to make any recommendations on that particular thing. Senator BARTLETT. I take it that you have no special interest in the two bills regarding the Alaska Railroad, one to incorporate the Alaska Railroad as a Government corporation and the other to give the ICC regulatory authority over the railroad? Mayor HARDCASTLE. Yes; we talked about that, but we felt that it wasn't germane to the city's interest particularly. Senator BARTLETT. A little far away? Mayor HARDCASTLE. Yes. Senator BARTLETT. Mayor Hardcastle, would you care to say anything more about S. 2669, which is the bill to extend exemption from U.S. Coast Guard inspections of cargo vessels under 150 tons? Mayor HARDCASTLE. We feel that the bill is in order. The type of service that the smaller vessels are giving us has become almost necessary to the particular area. Senator BARTLETT. Why is that? Mayor HARDCASTLE. They provide a service that many communities not many communities, but some communities are unable to get otherwise. Senator BARTLETT. Now, you have the Alaska Steamship Co. as a common carrier serving Alaskan ports. Is it your view that this carrier cannot take care of the business in the smaller ports? Mayor HARDCASTLE. The consensus of opinion has been that some of the small ports would not get as regular service as they are getting now. Senator BARTLETT. Well, how about Ketchikan and Juneau? Mayor HARDCASTLE. In my opinion, the Alaska Steamship Co. could probably take care of the larger ports without too much difficulty. Senator BARTLETT. Do you believe that the Alaska Steamship Co. should be permitted to take care of the larger ports exclusively, without any intervention by the charter ships? Or is this something to which you have not given consideration? Mayor HARDCASTLE. That has so many ramifications that I would rather not comment on that particular part-that particular question, because Senator BARTLETT. Why, sir? Mayor HARDCASTLE. Because it involves things with which I am not especially conversant. Senator BARTLETT. The committee understands that later there will be other witnesses on that subject. Mayor HARDCASTLE. Speaking of regulations and subsidies, I feel that I am not qualified to answer that specific question, because of the many ramifications that are involved. There will be qualified witnesses to testify on these problems. Senator BARTLETT. Thank you, Mayor Hardcastle, for your testimony, and thank you also for the warm welcome that you have given us. Mr. Barton? Mr. BARTON. No questions, Senator. Senator BARTLETT. Thank you then very much, Mayor Hardcastle. The next witness will be Mr. William Boardman, representing the Ketchikan Chamber of Commerce. STATEMENT OF W. K. BOARDMAN, MANAGER, KETCHIKAN CHAMBER OF COMMERCE Mr. BOARDMAN. Thank you, Senator Bartlett. My name is W. K. Boardman, manager of the Ketchikan Chamber of Commerce, Post Office Box 2637, Ketchikan. We have prepared a statement for presentation by the Ketchikan Chamber of Commerce to, what we formerly thought was the subcommittee, and we now understand, possibly the full committee of the Senate Interstate and Foreign Commerce Committee, at the hearing held on this date, in Ketchikan. The Ketchikan Chamber of Commerce would like to thank Senator Bartlett, chairman of the committee, and the other members of the committee, for scheduling the series of hearings in Alaska pertaining to legislation pending in Congress on Alaska transportation problems. We appreciate both the time and attention that is being devoted by the committee to this important matter and also the fact that sufficient hearings have been scheduled throughout the State to allow everyone interested to be heard. The statement presented by the city of Ketchikan gives information pertaining to Ketchikan including population figures, background of economy, present transportation mediums serving the community and surrounding area, and other factual data of importance to the committee. Therefore, that information will not be duplicated in this statement. The following comments pertain to transportation bills that the Ketchikan Chamber of Commerce has reviewed and reflect our thinking and recommendations on same. (Comments follow :) S. 1507 Senate bill 1507, a bill to make the Interstate Commerce Act, as amended, applicable to transportation by water between ports in the State of Alaska and other ports in the United States, and for other purposes. We endorse this legislation realizing that the subject matter, because of the complexities existing in the transportation industry in Alaska, was best left out of the statehood bill for later legislative action. The legislation basically is designed to provide uniform regulation of surface transportation in interstate or foreign commerce within Alaska and between Alaska and the other States as now provided under the Interstate Commerce Act with respect to similar transportation within and between all of the other States. We recognize that many loopholes exist in the present regulatory pattern of transportation in Alaska and that uniformity is sadly lacking. The proposed legislation would largely correct this undesirable condition, and it carries our unanimous endorsement. S. 2451 Senate bill 2451, a bill to establish a joint board and to require mandatory through routes and joint rates for carriers serving Alaska, Hawaii, and the other States. This legislation does not appear to us to be in any way controversial and it has our endorsement. The required filing of joint rates in both the passenger carrier and common carrier fields of transportation involving those serving |