The Daily Alaska empire., 1950-06-13
THE STATEHOOD HEARINGS
 No. {
By BOB DE ARMOND

IlOOu lOI f1ldOhd SOOo iOOiio CNSht- ] ually to the cost of operating the proposed state government. This cost, from the estimates of people on both sides of the statehood question, appears to be rising stead fly and rapidly.
 For example, on September 5, 1947, Mrs. Mildred Hermann of Juneau wrote a letter to the Daily Alaska Empire in which she be- rated the editor of that newspaper for an editorial. The editorial had estimated S2l, 100000 as the cost of operating the government of the State of Alaska during it's first two years.
 This figure, Mrs. Hermann said, was out of all reason and propor- tion and could be attributed to the bias of the newspaper and its ed- itor
 Now, on April 25, 1850, before the Senate Committee on Interior and Insular Affairs at Washington, Mrs. Hermann presented a budget estimate for the proposed new state. The figure she presented was $12,492, ,000 for year, or SEA- 984 ,OO0 for the first biennium, and she. presented it without even a wheeze of dismay.
 Confusion in Figures
 Mrs. Hermann, an attorney who | introduced herself to the Senators as "the biggest half of the female bar association of Alaska" handled the main presentation on the costs of statehood for the statehood group. Just why she was selected to handle this part of the case l do not know, although she listed as her qualifications the fact that she had been married for many years to an Alaska businessman and that she herself had been OPA director for Alaska for five years. Mrs. Hermann is no doubt an able attorney but unfortunately she has way of handling figures that is apt to lead to confusion.
 AS a minor example, on Septem- Der 8, 1947, Mrs. Hermann testified on statehood before House Sub- committee on Territorial and h. sular Affairs. In her introductory remarks she said: T have lived in Alaska for 28 years" On April 25, 1850, testifying before the Sen- ate committee, Mrs. Hermann said: T have lived in Alaska for 32 years"
 That was, of course, a small dis crepancy and had no bearing on the statehood case. But her fig ures on statehood costs also showed discrepancies, causing some con- fusion among the Senators.
 Surplus Discovered
 Mrs. Hermann started off, in her presentation, with territorial rev. enues, winch she said will amount to $10,02O,O00 this year. "The 1949 session of the Legislature increased taxes from five to ten millions, she said, without adding any bur densome or onerous taxes"
 The cost of operating the terri torial government for this year, Mrs. Hermann said, will be $8,250,- poo. She added: We have no out standing obligations at the present time, though some of the appro- priations have been frozen pending the receipt of further money. And the income for this year is going to more than meet the appropria- tions and leave a balance of ap- proximately $1,75O,O0O in our tax fund"
 The $l,759,000 surplus will, am sure, be welcome news to MT. Henry Roden, our harassed Territorial Treasurer.
 Added Expenses
 The expense of operating the courts, caring for the insane, oper- ating the Fish and Wildlife Serv- ice, and so forth, Mrs. Hermann estimated would bring the state budget to s12,492,0OO for the year.
 She said that while she recog- aized that Alaska would have to pay for the care of its insane people in the future she did not think that the new state would be ourdened with the care of the 328 Aalska patients now at Morning side Hospital.
 "Is there anything in this bill that would recognize the respon- sibility of the Federal government to assume the load here for you?' Senator Anderson wanted to know Certainly the incidence of lnsan- | Ity that happens before you be-