601 



Senator Wirth. Thank you, Mr. Brenner. 



I have read Mr. Kaelke's testimony and I would like to note for 

 the record that one of his proposals is: "Create a Tongass regional 

 center for land management, economic development, and scientific 

 research in Sitka. Such action assures regional decisions by the 

 people who are most affected by the planning, rather than those in 

 Portland and other outside locations." I think that that maybe fits 

 in with some of the other economic development ideas that have 

 been discussed and we are going to try and build some type of a 

 section like this into the legislation. I think it is an interesting idea 

 and I thank you very much. 



Mr. Elerding. 



STATEMENT OF MIKE ELERDING 



Mr. Elerding. Thank you for coming to Alaska to hear the testi- 

 mony of those affected by your legislation. My name is Mike Elerd- 

 ing. My family and I have lived in southeast Alaska for 29 years. 



In 1960 my father moved our family to Ketchikan to take work 

 at the Ketchikan Pulp Company. I graduated from Ketchikan High 

 School in 1971 and attended college with the money I earned from 

 summer employment at the mill. 



From 1976 to 1983 I was employed as a banker in this communi- 

 ty. During this time I financed homes and consumer goods for mill 

 employees. As a commercial loan officer I also financed local busi- 

 nesses which depend on commerce generated by mill employees. 



In 1983 my wife and I bought a business with four employees. We 

 have doubled our business and increased our staff to 10 full-time 

 employees. 



So, you see, the pump mill has formed a financial cornerstone 

 around which my social/economic life has been built. My business, 

 my family's lifestyle and the community of Sitka cannot survive 

 without the economic stability the mill provides to this region. 



Section 104 of S. 346 calls for the termination of the long term 

 timber contracts. Without the assurance of a continuous supply of 

 raw materials the mill will certainly close, creating financial chaos 

 in this region. This is a reversal of earlier government policy which 

 promoted the development of southeast Alaska by entering into 

 long term contracts. Those contracts required the mill to make 

 long term commitments and long term financial investments. The 

 government recognized the construction and operation of these 

 mills in this area would entail unusually high rislis. To induce the 

 mills to take these risks the government offered 50-year contracts. 



The mills have fulfilled their part of the bargain but the govern- 

 ment wants to renege on its contractual commitment. Woodrow 

 Wilson once said, "A government is only as good as its word." Our 

 government, our country, and our community deserve more than 

 S. 346. 



Senator Wirth. Thank you. 



Mr. Stragier. 



STATEMENT OF BABE STRAGIER 



Mr. Stragier. My name is Babe Stragier. I have lived all of my 

 life in Alaska and moved to Sitka from Fairbanks in 1980. One of 



