The weekly Alaska citizen., 1919-04-21
GOVERNOR RIGGS OUTLINES HIS
 PLAN FOR TERRITORIAL OWNED
 AND OPERATED TRANSPORTATION

thority. as no federal expenditure will be involved.
 do not pretend to be an expert in the shipping business. but 1 do know that during the period that the Alaskan Engineering commission ope- rated the old transport Crook" & vessel entirely united for freight handling. engineering supplies and equipment were carried between Be- attle and Anchorage at rates per ton far below company tariffs, and this with only one-way haul.
 This past winter. with assistance in the department of the interior and after consultation with the United States Shipping board, estimating for one ship only, on the freight offer. ings of the Alaskan Engineering commission and southbound freight of shippers discontented with present conditions, l found that this one ship could be made to pay a hand some profit. was forced to abandon the idea. however. for the reason that existing lines. being deprived of this revenue, might discontinue sail ings for ports west of Cordova. thus cutting of even the present un- satisfactory service
 The attorney general of Alaska ad. vises me that there Is no legal req son why the territory cannot operate It's own steamships. and I firmly be. lieve that a line run by trained ship ping men will result in lower freight and passenger rates, better service. better mail deliveries and at the same time provide a sinking fund to pay of the incurred bonded indebt. edness. A notable saving in favor of territorial versus private operation Is found in the act entitled. "To pro. vide revenue and other purposes" approved by the President February "A. 1919, which, under section 213 lprovides:
 GROSS INCOME DEFINED. (b) Does not include the fol. lowing items. which shall be ex.
 empt from taxation under this title:
 CD Income derived from any public utility of the exercise of any essential government func. tion and accruing to any state, territory or the District of Co.,
 lumbia, or any political subdivi.
 sion of state or territory, or income accruing to the govern. ment of any possession of the United States, or any political subdivision thereof.
 It would also seem from what in formation can be procured from the local customs house that there would be no federal tonnage or other taxes levied on any ship owned or operated by the territory engaged in coast. wise traffic between United States ports. The tonnage tax. as pres cribed in section 2569 of the Compiled Laws of Alaska, for ships register ed in Alaska Is one dollar per net ton per annum, customs house measurement on each vessel.
 When in consultation in Washing. ton with officials of the postoffice department, was assured by them that the department would assist any contemplated transportation venture in the matter of mail contracts or even subsidies to the utmost of their ability.
 realize that am advocating a most radical and startling departure from accepted standards. The first impulse is to characterize the scheme as impracticable. It Is not impracti- cable; 1t Is distinctly practicable and will allow the territory to take on renewed life. We should dig direct to the root of our discontent. Every other question sinks to insigniflcance. for back of 1t all remains the basic fact that unless relief is afforded us in our most vital need, monies ex. pended on roads. schools, charities, and on all other constructive pro. jects. constitute merely stop.gap measures, never to bear full fruit. for Alaska will gradually lose popu. lation and revert to vast territory unpeopled save for seasonal nsh. ing population along the southern coast and the operatives of a few great mines.
 append hereunto. for comparative purposes. tariffs on certain items as effective in 1917 and 191S.
 THOMAS RIGGS. JR. Governor.
 Steamship Passenger Ratss for Up. per Deck cabIns Between Seattle or Tacoma and
 Ketchikan .s26.o0 $2s.oo : 800 Juneau ........ 31.00 39.00 500 l. A