The Alaska daily empire., 1923-04-09
SHIP SUBSIDIES, FROM TAX LEVY.
 RUSTGARD PLAN
Proposes Subsidized Line to Give Freight Rate on
 Par with Canneries.

Subsidies to steamships operating between Seattle and Alaskan ports and other subsidies 60 vessels oper- ating in Territorial traffic form the Attorney Generals solution for the transportation problems of the Terrlsc9y, as given by him at the conclusion of Saturday afternoon session of the joins legislative com mittee conducting a hearing on trans. portation.
 Although he admitted the incor- rectnSss of some Of the most import ant rates qucted by him in his bien- nial report to the Legislature, rates on which much of his analysis of transportation was apparently based, and was unable to rafute General Manager knickerbceker's claim that the Alaska Steamship Companys disi- dends for the 10 years preceding 1923 had averaged less than 6 Der cent, MT. Rus gard at the close of the sas- sion declared ha is convinced that excessive and eXhorbitant freight rates are charged by ocean steamship lines operating between Seattle and Alaska and that he did not believe MT. Kn.ckerbCekcr's statement that no profit is made by the Alaska Steamship Company on it's passenger traffic
 Outlines New Remeoy
 What, in your opinion. can this Legislature do to remedy the situa tion which yea say exists?p asked Representative FoSsar, ..len the At torney General had finished.
 ''My proposition is this,' said Mr Rustgard: The canneries are get ing the benefit of low rates at the present time. While the companies claim they are making no money on this traffic, l do not believe it. The Legislature should levy a special tax on the canneIfes to provide funds to pay subsidy to q new steam ship line to carry freight for Al askans at rates which will be brought down to what the canneries pay" He later amended the proposition to in clude subsidies to the lines now op- erating, saying that bids could be called for subsidies and he did not believe is absolutely necessary to exclude the old Hines from participat- ing, but it would he necessary to get new lines to bid in order to get the old lines down sufficiently low. He also suggested that subsidies be -paid to good sized steamers 10 op- crate on intra-territorial routes for the purpose of building up local busi- ness, putting the coal mines of the Interior in close touch with. the coast, the farmers with all Tern tOrial markets.
 Supervise All Rates
 Tho way is already marked out he added, by tho ship subsidy act pro iding for tho Seward-Alaska Penip sula service, passed by the 1921 Leg islature. Ther'e is one defect in that act. ho said. It makes no provision for rate regulatie~s Any future sub slides granted. he declared. must be made only with the expressed under standing that the power which super vises the granding and payment of the subsidy shall also have completa jurisdiction ever freight and plssen ger rates charged by the ships to which subsidies arc paid.
 In response to questions from mem Ibers of the committee, he sasd he believed the Territory had power to grant subsidies and that a tax on canneries to provide the funds neee5- sary for extensive subsidies could | ho dp vlie,4J that WouId nat be uncOrl- stitutional.
 Many Questions Asked Mr. knickerboeker was the target for many questions in the final ses- sion, which opened at 2 D. m. and ended about 4:30 D. m Saturday. lwhen tho committee adjourned to