The Daily Alaska empire., 1946-04-04
10 SETTLEMENT IN L0NCSHORE STRIKE
COMM U NICATI0N

Juneau. Alaska, April 3. 1946.
 Dear Sir:
 My attention has been called to your editorial in the issue of March 28 entitled Abuse of High Office" In this editorial it was alleged, based on letter written by J. G. Shepard, former EVA official in Alaska, read the previous day in the Senate by Senator Coffey, that I had cancelled an already approv- ed Federal Works water project for the City of Anchorage because the people of the city were not cooperat- ing too well" This allegation and every other to that effect in the editorial are totally unfounded. There isn't shred of truth in them. I have never been privileged to see MT. Shepard's letter.
 When I appeared before the Sen- ate (on the very day that the edi- torial was published) so that all allegations of this nature could be aired in my presence, and I might have a chance to give my side of the story, it was noteworthy that the matter was not brought up at all, although there was ample time and the Senate adjourned at ap- proximately o'clock when Presi- dent Coffey found there were no further questions to ask me. Now, what are the facts concerning the Anchorage water project? Far from cancelling or contributing to the cancellation of this project and other projects, I did everything pos sible to promote them.
 In fact, on June 21, 1941, I call ed the attention of Mayor Stolt of Anchorage to the possibility of se- curing Federal funds for such pro- jects as the one in question by the followig telegram:
 Mayor William Stolt.s Anchorage. Bill providing limited amount of Federal funds for construction of schools, hospitals, sewage and wa lter systems, sanitary facilities, re- [ creatio.al facilities. access roads, apparently due for final passage in Congress shortly. Would like { from you tentative list of projects most needed in Anchorage listing order of priority, approximate total cost of each project, percentage of possible local contribution for each, percentage of Federal grant neces- sary in order to carry out each project, also estimate as to how soon work could commence on each. should like to transmit recom- mendations to Washington. Since funds are limited decision is likely l to be based both on need and read mess of individual community to do its part. Please radio Govern ment collect.
 GRUENING, Governor You will note that notified the Mayor of Anchorage of this possi- bility even before Congress hat passed the bill Mayor Stolt re- piled by wire the next day listing the various projects which the city desired. I got behind all of them. A number of them were obtained. As for the water project, have today received from Earl McGinty, who was then and is now the rank ing official of the Federal Works Agency in Alaska, an unsolicited telegram which is as follows
 From Earl D. McGinty, Seattle, Wash. 0301l8Z
 To Governor Gruening, Juneau, Alaska:
 Sorry to hear of unjust criticism false statements and intimations | with particular reference to Shep- ards statements connection with Senate hearing on Memorial Num- Der One as reported in March 28 issue Alaska Empire. Re Anchorage water system distribution portion of project constructed with Federal l funds and funds for water supply portion project rescinded after completion of plans because of un- sufficient military endorsement at time review and reestablishment of war need was required on all pro- jects. Shepard was aware of the true reason for rescission of the allotment as he sent a radiogram to our Juneau office while he was assignment at Anchorage prior to termination of his services by EVA advising in effect that General Buckner was unable to furnish the type of endorsement requested for this project Files contain copy oi radiogram dated August II, 1922 addressed to EVA Administrator, Washington signed by you, Clark, Wade and me recommending im- mediate action in lifting suspension order and proceeding with this en- tire project. Re Sitka recreation center for service men Shepard al- so aware this project when approv- 1 ed termed urgent necessity con- junction with Navy and Army ac- tivities Sitka and necessary part of war effort by commanding officer fContinued on Page ThreeJ