The Daily Alaska empire., 1947-02-28

Senator Edward D. Coffey-who has been against the bill from the beginning-seized the opportunity to get across an amendment hack ing out the portion on which his ire was focused; an exemption of professional services.
 Senator Victor c. Rivers there upon saw only one way out-to defeat the bill. Senator N. R. Walker, however, pleaded that the measure was worth another try to save. In his remarks, Walker alluded to Fairbanks letter. " Immediately, President Nerland's S ears quivered
 At Nerland's insistence, Walker pulled the letter from his pocket and, sneaking peek at the last page, reported that it had been signed by August Johnston, of the Fairbanks painting contracting firm of Johnston and Duncan De- claring himself the target of the letter, Nerland turned the Presi- dents chair over to Senator Char les D. Jones and asked permission to explain the circumstances back of it.
 Nerland Explains
 Copies of the letter have been spread about, Nerland indicated, in complaint against award of a painting contract at the Experi- mental farm at the University of Alaska, to Nerlanis company. The contract was awarded when Nerland underbid Johnston and Duncan by approximately $500 Neiland's bid was $975. Previously before a formal call for bids, Ner- land had estimated the job at Sl 900 to Sl,200 and had been told to go ahead at that figure; John ston also having been contacted and having estimated $l 500.
 Johnston at that time, request ed Nerland, as President of the Beard of Regents of the Uni versity, to issue specifications. Nerland said he had replied that he did not think a call for bids was required as both had already quoted estimate However, Johnston carried his complaint to University President Charles Bun nell and went so far as to act through Attorney Warren Taylor
 Letter Is Spread
 Nerland explained to the Sen- ators that, though he still did not feel justified in backing up, he did agree with Bunnell to ease the situation by submitting specifica- tions and advertising for bids.
 When this was done and Ner- lands firm was again awarded tke contract, Johnston saw fit to write to the Attorney General and to spread his letter around. That, Nerland said, is the letter re- ferred to by Walker.
 It was indicated that the in- ci6ent had been an influencing factor upon Rep. Meath's intro duotion of House Bill 21 which Nerland had voted for.
 Not True"
 When rresident Nerland had finished his story, Walker asked if, as the letter in substance stat ed, Nerland had ever told John ton, or any other person, that he had been doing the work at the University for the past 23 years, md that he intended to continue doing it and that specifications never would be issued.
 Nerland replied, emphatically:
 That's not true"
 Walker responded: T believe Jou," then went on to stress that ne had been reluctant to divulge the letter and would not have done so had not the President in- sisted.
 Senator O. D. Cochran, also University Regent, remarked that he contract had very properly been let to Nerland's firm upon ts lower bid. At that, the incl dent closed and Nerland went back into the chair.
 H. B. 21 was sent back to the Judiciary Committee for repairs.