The Alaska daily empire. [volume] (Juneau, Alaska) 1912-1926, 1920-06-23

Ier.OT, has already peg un NOlh lOOh'
ing toward the consolidation OF the
Alaska and Pacific Steamship com
panes in accord with the recon
mendations recently made to him
by the Interdepartmental Committee,
! declares a special dispatch received
today by the Post In,elligencer from
/ It's Washington correspondent. Con
ferences viii be held with represen
| atives of both companies next week
| 1t is understood that both the All
lska Steamship Company and the
/ Pacific Steamship Company favor
consolidation provided that the Can
/ adam competition is eliminated and
an equitable basis of adjustment is
worked out. W. L. Clark, represen,
/ -ative of the latter company said it
s definitely understood that so long
/ IS foreign carriers have opportunity
to divert Alaska business. it will be
| impossible to successfully serve Al
! lska as whole, with American
| trans portation.
THE Merchant Marine Act elimill-
! dlt' uIlEOlAf I oiiCd IOIt lSh tOiiPCbiltpii
| n carrying merchandise" declared
| Mr. Clark. "and these provisions
must be extended to include passen.
gers
He also said that combination into
one operating company is preferable
10 division of the territory to be
covered.
The end toward which the Depart
nent OF the Interior is working is
| s fully explained in the recommends
| lions and the findings upon which
the committee made them. These
follow in full:
Water Transportation
Alaska is served with three ocear
transportation systems; the Alaska
Steamship Company and the Pacific
| Steamship Company being American
| lines, and the Canadian company
| The Alaska Steamship Company
serves all main sections Of the Ter
ritory the Pacific Steamship Com
oany all sections except the Berine
Sea and Nome route, and the Cana
| dian Pacific Company only South
eastern Alaska and inside passage
ports.
THE freight and passenger rates
OF the American companies show
general increase since 1914. Wheth-
er these rate increases have been
| justified was not inquired into by
the committee as such inquiry nee
essitating an expert examination of
the company's operating costs and
property valuations, could not be
! undertaken in the brief time allowed
for the committees Investigations.
The Committee, therefore, atlf EIpted
only to ascertain whether the Terri.
tory could develop UNDER existing
rates
at was the opinion of practically
every person appearing before the
Committee that money could not De
attracted toward Alaska, industries
| dependent upon transportation by
regular lines started, or general de
velopment go forward freely under
existing rates, and this was the con
clusion reached by the Committee
| Having reached this conclusion, the
Committee sought to determine the
elements in the transportation stu
| alton, controlling of efficiency and
cost of service, to ascertain whether
an equal or better service might be
secured at a lower cost, and II so.
whether freight rates might no be
reduced accordingly.
Outstanding Elements
"'The following were the outsian1-
ing transportation elements thus de-
veloped:
81. No material benefits now accrue
from maintaining two American
lines. There is no competition.
3d. The Alaska freight and passen.
ger traffic has two high peaks, spring
and fall, requiring an excess equip
ment in order to insure sufficient
elasticity to meet them.
90 The total freight carried yearly,
by the American lines is approx
mately half the total cargo space,
revealing the extent Of the economic
loss occasioned by the traffic peaks
"a. Service is at times, very ir-
regular, due to the nature OF the
traffic handled and the lack of CO.
ordination of sailings between the
two companies.
"5. Regular and the best possible
service to all districts of Alaska,
cannot be given by existing compan-
les under their present methods
and burdens of operation.
sc. The Post Office Department
is not functioning, and cannot func-
ton to meet the needs OF Alaska
under the existing organization of
transportation facilities.
Dual Control Condemned
az. The combined control OF land
and water transportation facilities
precludes the most efficient super.
vision and regulation of either. and
the further alliance with mining
and smelling interests produces a
psychological situation injurious to
Alaskan development and conse-
quently to traffic expansion.