The daily Alaskan., 1914-02-09
PASS THE AM
 NyAL DIVIDEND


 don, Dec. 16. The directors should feel gratified in the confidence placed in them, especially as the chairman, G. Colin Macrae, had to explain why it had been decided to pass the dividend in spite of the fact that the company had a bet ter showing than in the previous year. The report-whiCh was adopt ed unauimously-shOws a profit of E41,O1S.63, and after providing for all charges and sinking fund re- quirements there is &25,80O to go forward.
 The report stated that on the rail division the company had carried 1O,S9S passegers and 61,517 tons of freight. The operating expenses of the rail division shows a decrease Of $42,318, as compared with the previous year, and a decrease of $1O9,446 as compared with 1910. As regards the river division the fleet carried 4,917 passengers and 16,723 tons of revenue freight.
 The chairman in his speech pointed out that although he was only supposed to be dealing with the affairs of the company in 1913, things had happened his year which compelled him to take heed of them. The competition of the line going to St. Michael had become so keen that rate war had resulted He believed that the effect had only been to strengthen the company in the long run. But the fight which had been thrust upor them might become very costly. They were lighting for their existence and it was necessary for them to main tain their cash resources. It was necessary therefore, that the div idend should be passed in spite of heir increased profits.
 O. l.. Dickeson, president of the company, read a statement which explained a little more fully the trouble to which the chairman had referred. He said:
 As a result of conditions grow ing out of policy spread over period of years of handling busi- ness destined to Dawson, a very serious situation arose which threat ened to divert to the St. Michael route a large portion or the traffic which We feel should properly be routed over our line. Negotiations for the adjustment Of these condi- tions were carried on for a COnsid- erabIe period without, however, any acceptable conclusion being reached, and at IGst it became necessary to establish an entirely new connection for the interchange of traffic at Dawson in order to preserve our interests. Two new, modern boats of American register were construct ed for thIs purpose and were plac- ed in operation between Dawson and Fairbanks on the lower river. AS a result of the establishment of this new connection giving a thoroug service to Fairba lks we received ap- proxtmately $25O,OOO of gross rev euues which we should not otherwis8 have received. The establishment of this brought aabout a most vigorous rate war On the Yukon river. Rate wars are usually disastrous to all ,aries engaged, but our railway oc- cupied the peculiar position of ob- taiuing additional traffic at accept able rates sufficient to offset the re- auctions which were made on the Fl CT to meet the cut in rates, while at the same time our competitors han dled at a loss all the traffic deliv- cred by them to us as a direct re- SulL or . ue war. LII IACAI OhS VI IAA ocean lines having a regular estab- lished service from Seattle to Skag- way, as well as to St. Michael, un- dertook to divert large part of the traffic to the St. Michael route, dis crimiuating against their Skagway route and our line. This made it necessary for us at once to arrange .erms with a new and independent line of steamers to handle the traf- fife we control on the ocean; and the White Pass company could bet ter afford to keep such arrange ment in effect permanently, even at a heavy loss of handling the traffic on the ocean, than forego it's fair share of the Yukon traffic over the railway. It is not unlikely, that this state of chaos in the hand ling of the ocean traffic may contin- ue and if so, it is inevitable that we should at once take into consid- eration the question of the estab- Iishment of a permanent first class line to handle both freight and pass enger business between Seattle, Van cOuyer and SkagWay We should be l