The Daily Alaska empire., 1946-09-20
RIGHT TO BUY
 .CHILK00T PUT UNDER DEBATE
0'Harra Bus Lines Dellar ed Not Small Business
 -PIans Disclosed


 WASHINGTON, Sept. 20.--A de- cision on whether Kenneth B. OHarra of Anchorage, Alaska, will be given permission to purchase historic Chilkoot Barracks in Alas ka as surplus property will be made next week.
 Warner Gardner, assistant Secre- tary of the Interior Department, who heard protests against the sale to OHarra from the Veterans Alaska Cooperative Company of Washington, D. C., closed the hear ing today He said he would try to announce decision by next Wednesday.
 O'Harra, a World War II veteran, and the Cooperative, organized by World War II veterans, each bid $105,00 for the barracks, comprising a complete city. A drawing was held 10 determine the purchaser, and O'Harra won.
 Not Small Business
 The Cooperative contested the award to OHarra on the ground he was not a small business" as re- quired by the Surplus Property dis posal law.
 At the hearing yesterdaE O'Herra told now. after attending Ohio State University and working in Michigan, he went to Alaska and started a bus line in l937, which lie built up until he now had 36 buses and grossed about $200,000 income in each of the last two years.
 He testified he planned to use the barracks as the southern terminal for his bus lines and utilize all of the property for his own and the bus lines use.
 He described his business as a small business and said he believ- ed having Chikoot Barracks would increase his revenue from passeng- CTS and freight.
 Financing Questioned O'Harra was questioned closely by counsel for the Cooperative about his financing.
 He testified he had incorporated lis company as the O'Harra Blu: Lines. Inc, holding 100000 shares himself out of 550,000 shares oI capital stock with Sl par value. Secretary Gardner drew from counsel for the Cooperative ano from Maj. Carl Heinmiller, an off cer of the Cooperative, that tht Coops plan called for investment oi $500 900 in Chilkoot, with Sl05,00t going for the purchase.
 They also, in answer to questions said they had 40 members now anc applications for membership iron 800 veterans.
 Gardner also brought out bl questions that the bylaws of tht Cooperative permitted non-veteran' to become members. O'Harra' counsel contended this would dis qualify them from getting th' property
 l Principal Question Prev Savoy, counsel for O'Harra urged that Gardner rule immed lately on his clients qualification j to purchase the property, asserting that was the principal question Gardner agreed that was the chic question, but declared he could no make a decision without going ove all the testimony.
 Savoy insisted that the Coop plan to spend $300,0o0 on the prop erty put it in the class of "bi| business" if OHarra was to be in cluded in such a category. l Maj. Heinmiller testified that tn Coop intended merely to be tn holding company, to help get vet erans settled in Alaska, and tha each business in Chilkoot would b operated by individual veterans.
 Savoy called the plan "a dream child and insisted there was n guarantee that veterans would hay entire control of the barracks.
 We are only asking for plac to start" Heinmiller said. Eight percent of our members are mar ried and intend to take their fam lilies with them to Alaska"
 O'Harra said he intended to op crate the entire barracks and als furnish power to nearby Haines,