We have a chart here which will show you the traffic requirements, showing them over a period of years, and how we expect to build up in this period here [indicating on chart], and the actual number of personnel for the system, which we expect next year to go up to a total of about 50 people-24 enlisted men and 26 civilians. Mr. ENGEL. Those figures on the right are messages, are they not? General AKIN. Yes, sir. Mr. ENGEL. 600,000, 400,000, and so forth? General AKIN. Yes, sir. Mr. ENGEL. Is that the number of messages handled? Colonel LAWTON. That is the number of messages handled per month, Mr. Chairman. Mr. ENGEL. The number handled per month? Colonel LAWTON. Yes, sir. Mr. ENGEL. Now, they ran along at about 200,000 until when? Mr. ENGEL. Let us take 1942 first. General AKIN. You have there [indicating on chart] a message load of about 600,000. Mr. ENGEL. And then the number went up in 1943 to what? Mr. ENGEL. And in 1945 or 1946 you went up to 1,000,000 or better? Mr. ENGEL. And then the number dropped back again to about 400,000? General AKIN. In 1946 the number went down to about 400,000 and then it builds up again in 1947. In July of 1946 we go up to about 800,000, and then we drop back again and carry on up until in 1947; the latter part of 1947 and January 1948 it is about 900,000. Mr. ENGEL. About 900,000? General AKIN. Yes, sir; estimated. Mr. ENGEL. What caused that sudden drop in January 1946, and then the rise again? Colonel LAWTON. All of the Januarys are low. General AKIN. That is true; the winter months are when we have the least requirements for service. Colonel LAWTON. This was immediately after the war, Mr. Chairman, and before the civilian interest began to build up again. Mr. ENGEL. In other words, the million was reached at the peak of the war, and then VE-day came, and VJ-day, and it dropped down from there and built up again on a civilian basis later? General AKIN. Yes, sir. Mr. ENGEL. Can you give us a break-down of the number of messages handled as between civilian and military? General AKIN. Yes, sir; I have that right here, sir. In the over-all total of the traffic load that the system has handled, 56 percent of it is for the Department of the Army and the Air Forces, 28 percent is for civilians in the area, for commercial organizations, canning factories, the fur industry, and others, and then 16 percent is handled for the other Government departments. Mr. ENGEL. For the other Government departments? General AKIN. Yes, sir. Mr. ENGEL. Do they pay you for that service? General AKIN. No, sir; there is no compensation there. The only compensation we get is from the civilians. Mr. ENGEL. The only revenue you get is from civilians, and you furnish the Interior Department, the Department of Agriculture, and these other people free service? General AKIN. Yes, sir. We furnish them free service. MONTHLY AND QUARTERLY REVENUE Mr. ENGEL. Can you give us the revenue monthly and quarterly? General AKIN. I have the annual revenue here, sir, from the system. Mr. ENGEL. Just a minute; as I recall it, you have there a breakdown, or had last year a break-down, of the revenue, first, from civilians, and then an estimate based upon what the Army would have had to pay for that same service if they had paid for it. General AKIN. Yes, sir. Mr. ENGEL. And also the other services. You have that, have you? The General AKIN. Yes, sir; I can give that to you right now. apportionment for the Army with the other Government departments for 1949 will be $3,475,000 in money value. Mr. ENGEL. That is for the total traffic? General AKIN. The total amount for the Army, Air Force, and other Government departments. Mr. ENGEL. For them and other Government departments? General AKIN. Yes, sir. The civilian traffic for 1949 will be $1,375,000. Mr. ENGEL. And you actually collect that, do you? General AKIN. Yes, sir; we actually collect that and cover it into the Treasury. Mr. ENGEL. You collect that and cover it into the Treasury? Mr. ENGEL. Then you add to that the amount received from civilian and commercial agencies; is that right? General AKIN. Yes, sir; amounting to $1,375,000. Mr. ENGEL. And that money is actually collected and returned to the Treasury? General AKIN. Yes, sir. Mr. ENGEL. Or will be returned to the Treasury in 1949. General AKIN. That is an estimate, of course. Mr. ENGEL. I think we should put this little table in the record that you have here, showing the traffic from 1944 on. General AKIN. Yes, sir. (The matter referred to is as follows:) The receipts from commercial traffic which are deposited with the United States Treasurer are steadily increasing, as indicated below: In addition to the above, the value of traffic from Government agencies is estimated as $3,475,000. The total traffic handled by the System is made up as follows: 56 percent, Department of the Army; 28 percent, commercial; and 16 percent, other Government agencies. 70546-48- -11 COST OF OPERATING SYSTEM Mr. ENGEL. While you are at that, what has been the cost of operating that system? General AKIN. The total expenses of the system we estimate to be $7,648,875. Mr. ENGEL. Is that operating expense or capital investment, or both? General AKIN. It includes capital investment, operating expenses, and the estimated depreciation. Mr. ENGEL. What part of that is capital investment, can you tell me that? General AKIN. The capital investment is $12,030,000; that is the value of the plant; and we multiply that by 6 percent, and we have taken off 6 percent depreciation, and that amounts to $726,000. Mr. ENGEL. For depreciation? General AKIN. Depreciation; yes, sir. Mr. ENGEL. Can you give me the operating expenses for the Alaska communication system for the fiscal year 1949 as estimated by the Signal Corps? General AKIN. The amount of that is $4,978,375. Mr. ENGEL. Can you give me a break-down of that that? General AKIN. That $4,978,375 is broken down as follows: Alaskan communication system, fiscal year 1949, for the maintenance of buildings and utilities, signal equipment, and operations, $1,645,000. Mr. ENGEL. That is the engineer service? General AKIN. Not necessarily. Depreciation of plant-estimated value of the plant at $12,030,000, at 6 percent depreciation-amounting to $726,000; estimate of the money value of the items furnished by the Department of the Army and civilian agencies, $475,375; pay for military personnel from Finance Service, Army, $2,000,000. Mr. ENGEL. This is the military personnel engaged in the Alaskan communication service? General AKIN. Yes, sir. Would you like to have that included? Mr. ENGEL, Yes. General AKIN. That is the military personnel required for the operation of the Alaskan system. Rental value of Government-owned buildings, estimated, $114,000; rental value of Government-owned land, $18,000; total, $4,978,375. That gives you the operating expenses. BREAK-DOWN OF INCOME OF THE SYSTEM The break-down of the income of the system is as follows: Estimated cash receipts to the United States Treasury, $1,175,000. That is the money we expect to collect. Mr. ENGEL. For 1949? General AKIN. For 1949; yes, sir. Estimated internal-revenue tax on the messages, $200,000. That gives you the $1,375,000. That is the cash return we get from the system. The estimated cash value of the free traffic handled for about 46 Federal agencies is $3,475,000. That gives the total income from the system of $4,850,000, estimated. Mr. ENGEL. Does that complete your statement? General AKIN. That, in general, covers the high spots of the system, and we can take up the details whenever you are ready. COVERAGE OF THE SYSTEM Mr. ENGEL. Last year you had a map showing a much clearer picture of the system, I thought, going into Edmonton and all other places in Canada that you went into. I would like to have something from you as to how far that system was operating last year and how far you expect to extend it, if any. I thought the story on the thing was rather good last year. General AKIN. We have that right here, sir. From Fairbanks into Edmonton, I have the following circuits: two voice; two telegraph, complete. We run all the way to Edmonton. From Edmonton into Seattle around this way [indicating on map] I have two telegraph circuits. At Edmonton, connections are provided through the commercial telephone system with all places in the United States. That is where the commercial circuits are picked up. Mr. ENGEL. In other words, through commercial lines you can now reach Edmonton by telegraph and telephone? General AKIN. Yes, sir. Mr. ENGEL. And then you supply service from Edmonton to- Mr. ENGEL. And from there, of course, to any place in Alaska? General AKIN. Yes, sir; that is right. Mr. ENGEL. What are the lines from Seattle down? Those are telephone and telegraph lines in the black? General AKIN. Yes; but these are teletype lines. We have commercial teletype service between Edmonton and Seattle, so that they can send messages from Fairbanks into Seattle. Mr. ENGEL. In other words, you can go over the radio one way, or telegraph? General AKIN. We can go by radio to Seattle and by submarine cable, and do, to Seattle; then we can go by land line all the way around. DISTRIBUTION OF PERSONNEL Mr. ENGEL. How many people do you have at Adak? Mr. ENGEL. Suppose you insert that in the record. 1 Including installation and maintenance team for Aleutian (back-up maintenance for all Aleutians). * Including installation and maintenance team for Anchorage sector (311 miles open wire to maintain). Including installation and maintenance team for Fairbanks sector (520 miles open wire to maintain including main Alcan arterials). 3 Branch offices now operating. New station to open fiscal year 1949. 6 VHF repeater station operated by Juneau Alaska Communication System station. 7 Branch offices to open fiscal year 1949. Office of ACS Deputy Commander. Operates out of Seattle in Alaskan area. |