The Cordova daily times., 1920-06-26
Findings and Recom-
 mendations
WATER TRANSFORMATION

a Canadian company The Alaska Steamship Company serves all main sections of the territory, the Pacific Steamship Company all sections ex- cept the Boring sea or Nome route and the Canadian Pacific Company only Southeastern Alaska or inside passage ports. ..
 The freight and passenger rates of the American companies show a gen. eral increase since 1914. Whether these rate increases have been justi- fled was not inquired into by the com mittee as such inquiry, necessitating an expert examination of the com panys operating expenses and proper ty valuations, could not be undertak- en in the brief time allowed for the committees Investigations. The com mittee therefore attempted only to ascertain whether the Territory could develop under existing rates.
 
 every person appearing before the committee that money could not be at tracted to Alaska, industries depep- dent upon transportation by regular l lines started, or general development go forward freely under existing rates, and this was the conclusion reached by the committed Having reached this conclusion, the commit tee sought to determine the elements in the transportation situation, con- trolling efficiency and cost of service, to ascertain whether an equal or bet ter service might be secured at low CT cost, and if so, whether freight rates might not be reduced accord ingly
 The following were the outstanding transportation clements thus devel- oped: |
 l.. No material benefits now ac- crue from maintaining two American 1 lines. There is no competition.
 2. The Alaska freight and passen- ger traffic load has two high peaks, spring and fall requiring an excess equipment to insure sufficient elasti- city to meet them.
 | 3. The total freight carried year. | 1Jy hu hn Anon IiT1n ic imately half the total cargo space, re- vealing the extent of the economic loss occasioned by the traffic peaks
 f. The service is at times very ir- regular, due to the nature of the traf fic handled and lack of coordination of sailings between the two compan- ies.
 5. Regular, and the best possible service to all districts of Alaska, can not be given by existing companies under their present methods and burdens of operation.
 6. The postoffice department is not functioning, and cannot function to meet the needs of Alaska under the existing organization of transportation facilities.
 7. 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 psy- chological situation injurious to Alas kan development and consequently to traffic expansion.
 8. Canadian competition to south eastern Alaska is serious factor in the development of an adequate Amer ican service. Southeastern Alaska traffic should help support the entire Alaska transportation system. The portion of that traffic going to the Canadian lines cripp1es to that ex- : tent a comprehensive transportation scheme for the entire Territory.
 The committee is unanimous in the conclusion that the two independent steamship lines, as at present organiz- ed, cannot solve the transportation problem of Alaska. It therefore recommends:
 1. That an effort be made to con- solidate, under proper safeguards, existing American lines into, or sub- stitute therefor, one purely ocean transportation company as the quick est and surest method to reduce existing ocean freight rates and to meet other transportation necessities.
 3. That the shipping board be re- quested to at once begin an inquiry into all elements entering into the reasonableness of present ocean freight rates, to the end that the com