Douglas Island news., 1919-03-28
torial legislation, to come Co Che TO- lief Of the Territory.
 Must Start in Small Way

take over practically lhe 'ullIt ocean traffic of Alaska | believe that Congress will grant us the nec- cssary authority, as no Federal cN- pcnditurc will be involved.
 | do not pretend to be an expert in the shipping business, but ! do know that during Che period that tho Alaska Engineering Commission op- ciated the old transport Crook @ vessel entirely uufitted for freight handling, engineering supplies and equipment were carried between Se- attle and Anchorage at rates per ton far below company tariffs, and this with only a one-way haul
 This past winter with assistance lu the Department of che Interior and after consultation with the United States Shipping Board, osti- mating for one ship only. on the freight offerings of the Alaskan En- rineoriug Commission and south bound freight of shipper discontent- ed with present conditions, found that this one ship could Doe made Co nay a handsome profit. ! was forced to abandon the idea, however, for the reason that existing lines, being dcprived of this revenue, might dis continue sailmgs for ports west Of Cordova. thus cutting off even Che present unsatisfactory service.
 No Legal Barriers
 The Atorncy-Geueral of Alaska advises me that there is no legal reason why the Territory cannot operate its own steamships and ] firmly believe that a line run by trained shipping men will result in lower freight and passenger rates, better service. better mail deliveries and at the same time provide a sink ing fund to pay on the incurred bonded indebtedness. A notable soy- ing i'm favor of Territorial versus private operation Is found in the act entitled. "To provide revenue and other purposes" approved by the President. February 24, 1919, which under section 2l3 provides.
 Gross Incomes Defined:
 lb) Does not include che fol-
 lowing items. which shall be eX-
 empt from taxation under this
 title:
 tD Income derived from any
 public utility or the exercise
 of any essential government
 function. and accruing to any
 State. Territory of the District
 of Columbia. or any political
 subdivision of State or Terri
 tory. or income accruing to thc
 Government of any possession
 of the United States. or any po-
 liticaI subdivision thereof"
 It would seem from what inform itlon can be procured from che local ,ustoms house that there would be no Federal tonnage or other taxes .cvied on any ship owner or oper- lted by the Territory engaged in .oastwise traffic between United States ports The tonnage tax, as prescribed in section 2569 Of the Compiled Laws of Alaska. for ships registered in Alaska is one dollar per net ton per annum, custom house measurement. on each vessel.
 Department Will Assist
 When i'm consultation in Wash ngton with officials of the Post Office Department. ! was assured by hem that the Department would assist any contemplated transporta- ion venture in the matter Of mail contracts or even subsidies to the utmost of their ability.
 l realize that ! am advocating a most radical and startling departure from ucceped standards. The first impulse is to characterize the scheme ls impractlcablc. It is not imprac- icable: it is distinctly practicable and will allow the Territory to take on renewed life. We should dig di- rect to the root of our discomfort. Every other question sinks into sig Aificance. for back of it an remains the basic fact that unless relief is afforded us i'm our most vital need, monies expended on roads, schools. charities. and on an other construc- tive measures. constitute merely stop-gap measures, never to bear un fruit. for Alaska will gradually lose population and revert to vast Territory unpeople save for sca- sonal fishing population along the Southern coast and the operatives of few great mines.
 append hereunto, for comparo- i've purposes, tariffs on certain items as effective in 1917 and 1919.
 (signed)
 THOMAS RIGGS, JR,
 Governor.
 ,,o,vcr, or, rvrCrrOnr