The Daily Alaska empire., 1951-05-24
C05T-0F-LivING PAY CUT COULD AFFECT OVER 5000, GOV.

At least over 5000 families, resi- dents of Alaska, would be affected economically if the cost-of-hving allowance is eliminated from Fed eral payrolls in Alaska, Governor Gruening said today as he entered the fight against House acton which last week eliminated the added pay for Alaska employees of the Department of Agriculture.
 If Congress eliminates it for one department, we can look for ward to it being cut from all of them" he added.
 The Governor has sent detailed protest to each of the 2l members of the U. s. Senate appropriations committee highhghted by the fol- lowing points;
 The allowance, in the case of Ag- riculture, dates from 1924 and cost of-living surveys recently have shown that living costs in Fair banks and Anchorage are, respect ively, 47 and 40 per cent higher than in Seattle Discontinuance of the allowance to employees hired locally would promote colonialism and a caste system by establishing higher paid class recruited from the "Motherland' to work with lower paid, presumably inferior, class of resident AlaSkans.
 The proposal, his protest con- tinued, would deny the capacity of Alaskans to govern themselves by providing greater pay for impor- ted officials. It would be inefficient in favoring locally uninformed en- ployees over resident employees. Direct increased costs would result from outside recruitment, travel costs being met by the government from point of hire to job location. A greater turnover rate, and longer training periods would add to such costs. Finally, he added, the pro- posal undermines national policy which aims toward permanent settlement of Alaska. It would mean the domination of Federal agen- cies by trans,ent workers having roots and basic interests elsewhere.
 The Senate appropriations com mittee was urged to block the pro- posal, not only as it affected the Department of Agriculture, but in its application to any other Federal agency in Alaska, since those op- posing the allowance, are seemingly attacking ittih every appropriation bill.
 The Governor pointed out that the matter is of general interest to the business community since Federal employees are so widely distributed that their loss of buy ing power would be felt through out Alaska.
 Tn the Anchorage area, he cited, the railroad has an average year. around total of 1,400 employees; the CAA 663, Read Commission 290, and civilian employees of the mil  itary total 3,200. In the Fairbanks area are an average of 2,000 year around Federal employees. mostly railroad and military employees. Average total for Juneau is about 600. Most of these people receive the cost of living allowance.
 The Governor pointed out also, that the 1850 Federal payroll for the Anchorage area was $31 ,321 ,669 Elimination of the cost of living allowance from this would reduce the figure by probably as much as five million dollars, he estimated.
 He urged Alaskans to express themselves by protesting to mem bers of the two appropriation con- mittees in Congress. If the Senate eliminates the objectionable pro- vision, he pointed out. the bill goes to conference and the House con- ferees will be chosen from the House appropriations committee. 1