Chairman BRIDGES. I understand the Department asked that this amount be restored. Will you explain your reasons for requesting the restoration, Mr. Lee.

Senator SMITH. Mr. Chairman, I think Mr. Lee wanted these letters in the record.

Chairman BRIDGES. Fine. They will be made a part of the record.

JUSTIFICATION OF AMENDMENT REQUESTED

Mr. LEE. Mr. Chairman, we have requested the restoration of $100,000 under the appropriation headed "Maintenance and Operation of Public Airports, Territory of Alaska." These airports, as this committee knows, are the civil airports at Fairbanks and Anchorage, which were built to remove the civil traffic from Ladd and Elmendorf Fields at those two locations. These airports are operated by the Civil Aeronautics Administration, and we have requested the necessary funds to meet our operating expenses.

The receipts from the operation of these airports are credited to the Treasury under miscellaneous receipts.

I might point out that even the sum of $650,000, which we requested, does not meet the full cost of operating the airports. This was pointed out in a letter to this committee on July 6, 1953, which indicated that the tenants are paying direct costs of utilities there at the present time in the extent of $75,000 a year.

These $75,000 are not available to the Government of the United States.

The $100,000 which we have requested is required partly for police and fire protection at the airports. There is $75,000 required for that purpose and $25,000 for general operating expenses.

We feel that this $100,000 is the minimum requirement for efficient operation of the airports during the coming fiscal year.

FIRE AND POLICE PROTECTION

Chairman BRIDGES. Mr. Underwood, of the staff, here, raises a point on fire and police protection.

Do you want to raise that question, please?

Mr. UNDERWOOD. I would like to, on behalf of the Senator, ask the question if the amount requested for fire and police protection included a 24-hour watch at both airports, and is that the portion denied by the House?

The present staffing protection at these What we are asking

Mr. BASNIGHT. It isn't exactly that way, sir. provides for less than minimum guard and fire airports, particularly during the midnight period. is enough to have at least two men available to man the crash trucks and provide police protection for the airports.

Mr. LEE. I think in answer to your question we cannot provide at the reduced level what we consider the minimum necessary fire and crash protection at those airports.

Chairman BRIDGES. Twenty-four hours a day?

Mr. LEE. Yes, sir.

Senator SMITH. What will you have, with that amount?

Mr. LEE. In the requested increase we would have 5 guard firefighters at Anchorage and 7 at Fairbanks. And that would provide at Fairbanks, where they have less traffic, two men during the period of greatest traffic activity.

Senator SMITH. But not around the clock?

Mr. LEE. No.

Senator KILGORE. That means 2 men per shift and 1 over; is that right?

Mr. LEE. That is correct.

Senator KILGORE. And at the other place, 3 men per shift and 2 during the busy hours?

Mr. LEE. Yes, sir.

Senator SMITH. What is the shift? How long a time?

Mr. BASNIGHT. Eight hours.

Senator SMITH. What is the pay?

Mr. BASNIGHT. That is grade CPC-7, with a base pay of $3,435.

COST STUDY

Chairman BRIDGES. Last year, you told the committee that a cost study was being made of the airports at Anchorage and Fairbanks. Were definite conclusions reached as a result of the study?

Mr. LEE. Yes, Mr. Chairman. We have recently made a review of the costs which go into our revenue base there. We are operating under a record which we feel requires us to have the revenues meet our annual expenditures, plus certain capital costs.

This recent study which we have completed indicates that at least in one respect we should modify the costing base, and that is with respect to the amortization period for the terminal building, which was previously fixed at 20 years. It is felt that this is not realistic, seeing as the building is of permanent-type construction, and also since on similar type structures in the continental United States the amortization period is double that. So we will recommend that the amortization period of the terminal building be extended to 40 years.

COMMERCIAL CARRIERS USING AIRFIELDS

Chairman BRIDGES. Are any subsidized airmail carriers using these two airfields now?

Mr. LEE. Yes, sir. These two fields are used by Alaska Air Lines, Wein Air Lines, Northern Consolidated Airlines, Pan American Airlines, Northwest Airlines, Pacific Northern Air Lines, and Cordova Air Lines.

Chairman BRIDGES. What charges do they pay?

Mr. LEE. For 1954, we estimate may I add that Canadian Pacific Air Lines also uses the field. But that is not a United States carrier.

ESTIMATED REVENUES

From all of those, including Canadian Pacific Air Lines, the estimated revenue from the airlines in fiscal year 1954 is $504,800. There is an additional miscellaneous revenue from concessionaires, land rental, tie down of private planes, and so forth, totaling $145,200, or a total estimated revenue for 1954 of $650,000.

Chairman BRIDGES. How does that compare with the operation costs of the airports?

Mr. LEE. The operation expenses-of course, we request the amount to cover the expenses, which we estimate at $650,000 for fiscal 1954, taking into account the fact that certain of the tenants are paying for utilities in the amount of $75,000.

AIR NAVIGATION DEVELOPMENT

Chairman BRIDGES. We will take up air navigation development. The House allowed $1,050,000, which is $35,000 below the $1,085,000 budget allowance for 1955.

I will insert the justification data at this point. (The justification referred to follows:)

AIR NAVIGATION DEVELOPMENT

(House bill, p. 29)

Estimate

1954 act

(House hearing, p. 253)

House allowance (a reduction of $35,000 in the estimate) _

AMENDMENT REQUESTED

$1,085, 000

1,085, 000

1, 050, 000

The Department requests the following amendments:

(1) Page 29, line 16, strike out "$50,000” and insert “$85,000", the estimate, or an increase of $35,000.

(2) Page 29, line 16, strike out "$1,050,000" and insert "$1,085,000", the estimate, or an increase of $35,000.

EXTRACT FROM HOUSE REPORT

(P. 12)

"The bill includes $1,050,000 for the planning and developing of a national system of aids to air navigation and air traffic control common to military and civil air navigation. The amount for research and development is $1 million, the same as for the current fiscal year. The request of $85,000 for administration was reduced to $50,000. The committee was advised that a new charter has been signed for the Air Navigation Development Board which would allow more efficient operation. It also provides for funding to be shared between the Departments of Commerce and Defense."

JUSTIFICATION

The House reduced by $35,000 the requested $85,000 for administration of this research program undertaken with the Department of Defense for the development of aids to air navigation and traffic control, which provide service to military and civil aviation alike. The program is supervised by a full-time military/civil development organization-the Air Navigation Development Board. In January of 1954, the charter of this Board was strengthened and additional emphasis placed on the importance of this research and development work to both the Departments of Defense and Commerce. Heretofore, Commerce has funded the program completely—the annual level during the past few years averaging about $1,400,000. Under the new charter, however, the Department of Defense has agreed to place under supervision of the Board an annual level of about $5 million for development projects.

Of the appropriation total of $1,085,000 requested, $85,000 is for administration-the same level authorized by Congress for the past 2 years to supervise a much smaller program, and a minimum amount for adequate economical supervision of the greatly expanded projects program. Under terms of the approved charter, the Commerce Department is obligated to furnish all administrative services. With the allowance of $85,000, this objective can be met. If the amount is reduced as recommended by the House, it would be necessary for the Defense Department to provide for the cost of administrative expenses in addition to the cost of projects.

It is considered to be to the advantage of the Government, through strengthening management and keeping the requirement for administrative expenses in one place, to implement the terms of the charter and appropriate $85,000 for this purpose by restoring $35,000 to the amount approved by the House.