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You may recall that we discussed that and decided that we would amplify the original idea of an international reception center with a free port, maybe a hall of States in which the various States of the Union would be invited to exhibit their products for whatever publicity value they would have in possible sales, and in that form we jointly introduced the bill.

I remember talking to the parliamentarian about the reference of that bill, namely to what committee it should be referred. There was some question because of the multipurpose nature of the bill. If the bill dealt wholly with an international reception center, it might logically go to the Committee on Foreign Relations. But it struck me that there were other aspects which made it far more desirable to keep it in the family, and I hoped it would be referred to the Committee on Commerce where we knew it would have especially solicitous attention, and that so developed.

What has happened on the Alaska International Airport is really one of the wonders of an age filled with wonders. I need not recall to you that largely as a result of your efforts as a voteless delegate the international airport was created and brought into use approximately a decade ago. Of course, it was then under Federal management. As recently as perhaps 3 years ago the first commercial flights over the pole took place. I think a number of Alaskans were invited to go on the first flight of the SAS. Since that time one foreign carrier after the other has come in, so there are now nine international carriers transporting passengers between the three great continents of the Northern Hemisphere: Asia, America, and Europe.

This thing has mushroomed to incredible proportions. I am informed that in the month of September some 20,000 international passengers passed through this airport. Obviously the facilities that were created some years ago when no such development was anticipated are totally inadequate, and we need on this airport all kinds of additional facilities, such as increased space for the customs and immigration authorities, and the health authorities. This all ties in with the general plan of expansion.

When we introduced this bill in the closing days of this last session we obviously had no thought or desire nor did we visualize the likelihood that it could be acted upon because of the very fact that in view of its many complications, in view of its dimensions, it was necessary to hold hearings of the kind that you are here holding to develop the various requirements, financial requirements and others, to see just how this going to be put across.

The State has a very definite concern in this. The city of Anchorage has a very definite concern in it. And the Nation has a very definite

concern.

The original idea of Mayor Byer to make this international reception center a place where visitors spending 1 or 2 hours here could, instead of having nothing to do, receive on the contrary the best possible impressions of America during what might be their only sojourn under the American flag is, of course, an idea that has great value to the Nation where we are trying, as we all know, and have been for some years, to project an image of America as a land of freedom and as a land of opportunity and as a land of free enterprise, an image that is very important for us to project to people coming either from behind the Iron Curtain countries or from so-called neutrals.

Then, when you add to that the possibilities of a free port, which has very definite economic advantages, and add to that the actual operational needs of the three Federal and State services which operate now in the airport with insufficient quarters and accommodations, we find ourselves with a very large problem but a very challenging and a very thrilling one.

I think I can restate that as far as I know there is no airport in the world that has this particular and unique pattern of people moving back and forth between the three great continents of the Northern Hemisphere, in fact, excepting Africa and Australia, practically the entire populated areas of the world.

This movement is only in its infancy. The figures are somewhat staggering.

Last year some 22 million gallons of aviation fuel were dispensed at this airport, and this is going to rise steadily. Out of this, of course, the State of Alaska derives a very substantial revenue.

I think we can reasonably anticipate that these figures will increase in geometric or maybe astronomic ratio in the next few years. We now have nine international airlines operating there. Just in the last few days one has been added-Riddle. It is likely that others will

come in.

The State has a very definite interest in this. I am hopeful that in the course of this hearing or others we will get some very valuable testimony as to how the financing should be done, whether it should be done partly by the State, partly by the city, partly by the Federal Government, and in what proportions.

I am frank to say that I haven't formed any very definite idea. I think that they all have a stake, and they all have an interest in it.

I think that about covers that aspect of it. I hope that others will come forward with specific suggestions because, as I say, this great development is still in its early stages, although it has practically all taken place it began to take place with the creation of the International Airport 10 years ago. Really 3 years ago we had the first commercial flights over the pole.

Senator BARTLETT. Senator Gruening, there is a new law now which was passed by the first session of this, the 87th Congress, a bill sponsored by Senator Magnuson of Washington State, who is chairman of this committee, upon which I have the honor to serve, establishing the U.S. Travel Service. Does not that fit in very ideally with the broad concept of your plan to establish a reception center, the Hall of States, and the trade zone here?

Senator GRUENING. It certainly does.

Senator BARTLETT. Because our effort is going to be concentrated to an extent which it never has been before, upon bringing people from the other continents to the United States so that they may see what we have and how we live.

Senator GRUENING. There is also a further interesting fact. While we assume, or have assumed, that these visitors, numbering now thousands every month, were destined to spend merely an hour or two in the airport during the refueling of their jetplanes, actually what has taken place in a number of instances is that they have been here for 1 or 2 days because of weather conditions, say, in Japan, the coming of typhoons, which made it impossible for their planes to leave,

with the result that they had to stay here for several days, although that was not intended. That is a further incentive to making plans for such a contingency.

Of course, I hope the time will come when we will allow these people, if they wish to, to stay here voluntarily between planes and actually see more of Anchorage and of Alaska and of America than they normally would. But through the accidents of weather, that does take place from time to time. It has taken place in the last month.

There are obviously not even sufficient hotel accommodations for these people here. They have to be taken some distance away, as far as Wasilla, for example, for accommodations, and that is another problem which has to be faced, and that is all due to the fortunate fact of superabundance. I think it is always pleasant when you are wrestling with problems not of scarcity but of abundance, which is what we have here. But we have to meet those problems.

I think there is one of the greatest things which has happened here, not merely in Anchorage and Alaska, but in the Nation. I think we have a great source of potential usefulness for international relations.

I think that Mayor Byer saw a parallel or analogy between the International Education Center in Hawaii, which was somewhat different. It was designed to be an educational center connected with the University of Hawaii where students from the Orient could come into an American environment where there were still many people of oriental origin, where they would feel very much at home, and act thereby as a kind of bridge of understanding between the East and the West, between the Orient and Occident.

Ours is a little different, but there are certainly close analogies. If these people from Asia come, if we can inculcate them with the things that we are justifiably proud of, if we can use their relatively brief period to give them a picture of America as we know they may not have gotten it in their home countries, I think we will be doing something for the whole Nation. And I think there are a number of avenues such as the travel legislation to which you refer which can be tapped for this purpose.

I think that the State will have a very definite part to play in this, as well as the city of Anchorage.

Senator BARTLETT. Thank you very much, Senator.

Senator GRUENING. I thank you.

Senator BARTLETT. Mr. Roloff? Do you care to testify now?

STATEMENT OF HENRY ROLOFF, DIRECTOR, PORT OF ANCHORAGE,

ALASKA

Mr. ROLOFF. With your permission, sir.

Senator BARTLETT. It might be a good idea. We want to hear from you at such length as you may care to proceed. Do you have a prepared statement?

Mr. ROLOFF. Yes, I do.

My name is Henry Roloff, and I am port director for the port of Anchorage.

I might add that I represent the largest port in the largest city in the largest State in the Union, and with that little levity, Senator, I will go to more serious subjects.

The port of Anchorage is appearing before this interim committee hearing of the Senate Commerce Committee to present what we hope will be recognized as an objective discussion of the multitude of problems now facing all of Alaska's transportation complex. For the purposes of this hearing, we define the transportation complex to mean ocean carriers, truck carriers, and the Alaska Railroad.

Several weeks ago the port of Anchorage directed a letter to Senator Warren G. Magnuson, chairman of the Senate Commerce Committee pertaining to Senate bill 1839. Although this particular bill is not at issue before this hearing, we refer to it in order to point out how complicated the transportation problems of Alaska have become, because, in brief, Senate bill 1839 would include nonvessel water carriers under section 216 of the Interstate Commerce Act.

Mr. Donald J. Smith, general manager of the Alaska Railroad, has agreed to provide Chairman Bartlett with the transcript of the Federal Maritime Board's factfinding hearing convened in Anchorage on June 23, 24, and 26 of 1961. This hearing followed the issuance of Resolution No. 1 by the Anchorage Port Commission, dated June 8, 1961, and I would strongly commend the transcript of this proceeding to the committee, because it has strong bearing on the issues before us. Inasmuch as I will refer directly and indirectly to Anchorage Port Commission Resolution No. 1, during the course of this appearance, I shall, for the purposes of a complete and clear record, submit a copy of that resolution at this time.

Senator BARTLETT. The resolution will be received and incorporated in the hearing at this point.

(The resolution referred to is as follows:)

PORT COMMISSION, CITY OF ANCHORAGE

RESOLUTION NO. 1

Be it resolved by the Port Commission of the City of Anchorage, Alaska, in special session:

Whereas the Port of Commission of the City of Anchorage, Alaska, is a duly authorized agency of the incorporated city of Anchorage, Alaska; and the port commission and the port director are charged by virtue of certain ordinances of the city of Anchorage with the responsibility of administrating and duty to administrate the functioning of the port of Anchorage and to report to the proper authorities of the United States or the State of Alaska violations of any laws pertaining to the use of wharves, docks, or landings and vessels in the port of Anchorage where no power lies in them to enforce such laws. And, the port commission and the port director are possessed with the responsibility of doing and duty to do all things necessary to protect the interests of the holders of certain bonds issued by the city of Anchorage to construct the port of Anchorage dock facility. And, further, the port commission and the port director are charged with the responsibility of doing and duty to do all things necessary to assure the proper administration of the port of Anchorage and its terminal facility in the public interest. The port of Anchorage facility is and has, since April 21, 1961, when its first cargoes were handled, been a completely operational terminal facility. Consequently, the port commission and the port director have an interest in the matter herein set out; and the port commission is gravely concerned in respect of such matter as it affects the present and future conduct of their responsibilities and duties; and

Whereas the circumstances and conditions recited in appendix A hereto, incorporated herein by this reference, exist in Alaska and in the Alaskan trade between the continental 48 United States and Alaska; and

Whereas such circumstances and conditions adversely affect the ability of the port of Anchorage in its efforts to establish routes of commerce toward the ultimate objective of providing a sound economic basis of transportation to serve a substantial and major portion of the State of Alaska, to enable commerce to flow freely at substantially lower costs between Alaska and the other States and foreign countries, and to foster the development of Alaska's natural resources, all of which is required in the public interest; and

Whereas since Alaska's statehood, the Federal Maritime Board has failed to meet its responsibilities and perform its duties as provided in the Shipping Act of 1916, as amended, and related statutes, and it has by such failure caused public carriers, terminals, and others, to be misled by its acceptance of tariffs for filing as though such tariffs were properly filed when, in fact, the Board actually has no jurisdiction under existing statutes relating to overland portions of the transportation contemplated in such tariffs; and

Whereas the actions of the Federal Maritime Board, both by omission and commission, have impeded and obstructed, do now impede and obstruct, and will continue in the future to impede and obstruct the Interstate Commerce Commission, the Alaska Public Service Commission, and other governmental agencies, respectively, in meeting their responsibilities and performing their duties to such degree that is detrimental and destructive and threatens the integrity of all economic regulation of carriers, terminals, and others; and

Whereas if such impediments and obstructions continue to prevail, it will work to the detriment of and damage to the general economy of Alaska and the United States; and

Whereas the need for action in these matters is clear, immediate, and urgent: Be it resolved by the Port Commission of the City of Anchorage, Alaska, That the Federal Maritime Board is hereby respectfully requested and urged to investigate immediately, upon its own motion, to determine the full extent of the violations of the Shipping Act of 1916, as amended, and related statutes and such additional investigation as may be deemed by the Board to be required; to make such findings as are set out and such further findings as may be deemed required by the Board in the premises; to take such remedial action as is required in the premises, including the immediate suspension of such tariffs as exceed the lawful jurisdiction of the Board but are filed with it and are unlawfully in effect by virtue of such filing; to absolve itself of such violations of statutes as it is guilty of; and to promptly otherwise meet its responsibilities and perform its duties within the scope of its actual jurisdiction; consistent with the intent of Congress and the public interest.

Dated at Anchorage, Alaska, this 8th day of June 1961.

H. HENRY ROLOFF,
Port Director and Secretary to the Port Commission.
(By direction of and for and in behalf of the Port Commission, City of
Anchorage, Alaska).

APPENDIX A

The Port Commission of the City of Anchorage, Alaska, respectfully shows that the following facts and circumstances set forth on the basis of the knowledge of the port commission and its staff and such representations as are based upon information of others are believed to be true by the commission do continue to exist in the State of Alaska and in the "Alaskan trade," even 2 years and 5 months after the Alaska Statehood Act became effective:

I

The Alaska Railroad, hereinafter referred to as the railroad, a Government corporation, operates under the control and direction of the U.S. Secretary of the Interior. The Railroad enjoys freedom from regulation in the operation of its normal transportation by Railroad service, in competition with regulated carriers financed by private capital.

The Railroad also owns and operates docks and wharves at Seward, Alaska. Additionally, it owns docks and wharves at Anchorage, Alaska, which it leases to others, such as Ocean Dock which it leases to the U.S. Army.

The Alaska Railroad, hereinafter referred to as the Railroad, a Government eral traffic manager, ARR 34, effective June 17, 1958, is purported to name "rates, charges, rules, and regulations for wharfage, handling, car loading, and

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