The Daily Alaska empire., 1948-03-05
By CHARLES D. WATKINS

cretary Krug of the Interior
 i'd today he has done all he can develop Alaska
 He said he is greatly concerned ger an inference in letter he
 ceived from Senator Butler (R-
 eb) that the Interior Department
 not doing all it can to develop le Territory.
 The Senator wrote Krug that mployees and former employees the Department are blocking de- elcpment Of paper and pulp in- ustry in Alaska
 Krug testified before Senate ubcommittee He and Oscar hapman, undersecretary, opposed
 bill to abolish Indian reserva- lons. prevent others being set p, and to turn over to the eIritory Indian Bureau activit- IS in Alaska.
 Butler said in his letter to Nrug that Department employees ave joined with James E. Curry, ounsel for Southeast Alaska h.
 ans, to prevent the Forest Ser ice from getting paper companies bid for large tracts of timber.
 No Bids For Timber
 The timber was offered for sale inder a law enacted last year, uthorizing the Service to sell the mber and hold the proceeds in ne Treasury until the rights of ne Indians are determined.
 No bids were received after Cur y warned paper companies the In- lans would contest the sale The indians claims that the land and lmber belong to them
 Butler said Felix Cohen, form 1T associated solicitor of the De- )artment, and others in the De- 9artment of Interior have been with James E. Cur y in an effort to block the De- )artment of Agriculture Forest in getting bidders on Alaskan timber
 The committee has been inves- ,igating Indian reservations in AL iska
 Butler told the Secretary that jov. Gruening Of Alaska had writ Jen that the issue oi aboriginal tights did not exist in the Terri ory until a former Secretary of created it, thereby ob- pulp and paper and oth- 1T development and reviving inter- 'acial hard feeling and friction which was on the way out"
 Work Of Ickes
 The reservations in Alaska were. ,reated by former Secretary Har- ,ld Ickes.
 Butler asked the Secretary why le had delegated to the Indian commissioner the authority to ap- ;rove contracts Curry arranged with the Indians.
 He called attention to two con- racts calling for sale of timber y the Indians to the Timber Corporation of New York.
 If tho Interior Department wishes to develop Alaska" Butler .sked, why do you not ask that hese two ten million dollar con- racts be sent to you for approv- ,l or disapproval instead of per- them to be used as a threat against bidders for the .imber?"
 Curry has maintined the Secre- .ary's approval is not required.
 Krug was to appear beiore the to testify on legislation % cancel reservations in Alaska, prevent establishment of others and 70 turn over territorial activities )f the Indian Bureau to Alaska.
 Earlier the Metlakatla Indians of Alaska telegraphed the commit tee that existing reservations should be perpetuated and others 
 A message from the secretary of .he Annette Islands Reserve say- ng they had adopted resolution setting forth their position was field today with Chairman Wat kins (R-Utah) of the Senate In- terior subcommittee
 Metlakatla's Statement
 The subcommittee is considering legislation to cancel recently creat- ed reservations in Alaska and for bid establishment of others.
 The telegram said the Metlakatla 'are definitely aware that when given ample opportun- ity for advancement and proper and just protection by the goy- ernment from interruptions ex- ploiters they will become self re- liant and sell supporting"
 Tt is our firm conviction that