The Daily Alaska empire., 1951-03-15
GOVERNORS CUSTER BILL
 FAILS, 8 TO 8
By JIM HUTCHINSON

A bill removing the governor from the Board of Road Commissioners died in the Alaska Senate last night on an 8-8 vote.
 It was the second in series of removal bills, recommended by Gov ernor Gruening, which were de- feated in the Senate after passing the House.
 The Senate also killed on an 8-8 vote a small loans act proposed by the Alaska Bankers Association. The act provided for 3 per cent in- terest per month on loans under $40O.
 Sen. Dan Lhamon (R-Fairbanks) i, speaking for the measure. called it a bill which would eliminate loan sharks" Sen. Frank Barr D-Fair- banks) countered that it would make loan sharks out of banks" and Sen. Howard Lyng (D-Nome) said it "smacks of usury."
 Marshall Crutcher, Kodiak banker and legislative chairman of the Bankers Association, told the sen ators the small loans act was based on standard state statutes and said most banks were unwilling to make small loans for a short time because it was too much trouble and ex- pense for small return.
 Argument
 Sen. John Butrovich argued for the bill that he had seen conditions in Fairbanks that could be rem edied by a small loans setup. He vited loan shop that waxed rich off soldiers who would pay $10 or so for borrowing S25 before pay day. with a watch or ring as secur- ity.
 Sen. Elton Engstrom responded that it all sounded good, but that bank still wouldn't make such loans without security or two sig natories to guarantee it = "so in my position I'd be stuck as signatory just as before
 Lyng commented. after Barr's loan shark jibe, that ''it makes them so in a milder sort of way, but it still smells as bad.'
 Lyng and President Gunnare Engebreth had one of their several sharp exchanges of the day and eve ming after Lyng made reference to how my heart bleeds" for some of the senators who had told how there were times when they needed the help a small loans act would pro- vide.
 Engebreth cracked the gavel and admonished Lyng to cut out the reference to bleeding in the Senate chamber. That brought the Nome senator back, red-faced, with 9 sharp retort that neither the presi- dent nor anyone else could censor his speech on the Senate floor as long as he didn't impugn anothe, senator's motive
 The Senate passed Al another banking bill to legalize interest col lections in advance on such con- tracts as car purchases where the interest for the year figured into monthly payments. The bill goes tc the governor.
 Barr led off the debate on the bill - by Rep. Mike Stepovich (R- Fairbanks) = for removal of the governor from the Board of Roao Commissioners with the contention it wont improve the board to put the attorney general on. We should leave the governor there." Sen. Steve McCutcheon (D-Anch- orage) suggested the board might handle some Federal funds in which case the governor should remain.
 Governors Travelling Lyng denied any Federal funds would be involved but suggested re- placing the governor on some boards with the Secretary of Alaska. T read in the papers he was out of the Territory for six months last year." Lyng said. Why keep the governor on the boards if he is gone so much? He asked to get off. Why not put in the Secretary of Alaska who serves anyhow when the governor is gone?" Sen. John Butrovich (R-Fair- banks), who said he was voting for the bill and did, argued it is only a stop gap.
 "The real solution is eliminating the hodge podge of boards" he said. 'The attorney general is getting into the high salary bracket where