The Alaska daily empire., 1916-05-02
P. 0. DEPARTMENT
 NOT INTERESTED
 IN PUBLIC SERVICE

~The cancellation Of the mail con tracts of the Juneau Steamship com pany which went out of business yesterday was not due to complaints on account of service" said Willis E. Novel;, president Of the company but was admittedly In the nterese of economy. lt was stated in SO many words by Assistant Postmaster General Prager, who has charge of the mail carrying contracts that the Department is not interested at all in the passenger and freight service repaired by the people, and that 1t Is content when it can reduce the ex- pense of delivering the mail and get bond to the government that VIII assure the delivery"
 "The Juneau Steamship Company ' continued Mr. Nowel, had contract ed to expeud $lS.OOO to Sl4,OOO on improvements to the Georgia, which would have made that vessel as good as new. and, in spite Of the fact that 1t had never declared dividend, 1t offered voluntarily to reduce the charge for carrying the mail between Juneau and Sitlla from $1S,OO0, the figure at which the contract was awarded 1t under a competitive bid. to S16O0O.
 "The Juneau Steamship company never has made money, and 1t has been operated by the Alaska Steam ship company and the Pacific Coast Steamship company solely because 1t constituted a link in their chain of operations In Alaska, This, and the fact that both companies are interested materially and otherwise in the development of Alaska kept the Georgia going. whether at prof it or a loss. Carrying out this pol icy, the Georgia never refused to make extra calls at places not cov- cred by the contract with mail at the request Of the government with out making additional charges, and 1t always accommodated mining peo- pie. fishermen, and settlers and pleasure seekers and hunting or oth- CT parties, whether there was profit in 1t or not.
 "The Sitka and Skagway route requires the services of a boat of at least 15O tons burden No smaller boat is able to combat the storms of winter, and frequently all Of It's ca pacity is required to accommodate the public. Several years ago, In- spector Whitney Of the Post office Department, made an investigation Into the mail conditions of the North, and 1t was recommended that no boat of less than 15O tons burden should be given either the Sitka or the Skagway contract.
 "The Juneau Steamship Company had planned. in case it. received a four years contract at the expiration of the present contract. to build a larger and better boat than the Geor. gia for the run. The plans of the vessel had already been drawn, and it would cost $14O,O0O
 During all of the 14 years it has been in business the Juneau Steam. ship company never lost life, nor even injured a passenger. It never lost a piece of mail matter or any freight for its customers. It's earnest concern has always been to give the best and most reliable service possi- ble. It has been a developing com. pany.
 ''The Juneau Steamship Company has distributed more than S50,0OO a year in Juneau. It has brought hun dreds of people to this city annual ly. and aided greatly in centering trade here.
 "Yet, because the government could get a little boat to agree to carry the mail between Juneau and Sitka ST.10O year cheaper than the Juneau Steamship company could possibly operate the Georgia on the Sitka run. the contract was cancel ed and the service to Skagway dis continued. leaving Berner's Bay country and the Sentinel Island with out a mail service at all"
 GENERAL CONFERENCE
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