Seward daily gateway., 1924-11-18
ANCHORAGE CHAMBER
 GIVES OUT REPORT
 ON ANCHORAGE DOCK


 At a recent meeting of the Anch- 1age Chamber of Commerce, the report of a special committee was made, and also was presented to Gen. eral Manager Noel w. Smith, to take to Washington for his consideration. The committee went into the dock question exhaustively and showed by figures compiled that it is cheaper for Anchorage merchants to have freight hauled by water than over the railroad. The Gateway has no comment to make on the report oth- CT than that it believes all tonnage possible should be given to the rall- road. If 60,O00 tons has been haul ed over the Anchorage dock then the railroad has lost $120,000 at $2OO per ton.
 The report is printed below and is well worth your perusal
 COIUplyluS Wllll SOui ANtN|
 our recent conference in Ancnorage we herewith submit our reasons TOT opposing the permanent closing ol the Anchorage dock and for asking for an early extension of the dock so as to permit the larger ships to make this regular port of call. l: IS our belief that the operation Of suitable dock at Anchorage would be benent to the Alaska railroad as we'll as to ArAlhorage and the whole of the ter ritory served by the railroad.
 Tn the first place, it is understood that the reasons given for tie propos- ed discontinuance of opera ticn of the dock is because it involves loss to the railroad and that the closing of the port would naturally divert ton mage to the railroad between Seward and Anchorage.
 For the purpose of this discussion it may be well to recall that the rate by steamers on freight x. D. l. B. N., Seattle to Seward, is $13,000 per ton, and Seattle to Anchorage, $500 per ton, weight 'or measurment, an ap- parent differential of $2.00 per ton. To adjust this differential to a &aight weight basis, for purposes of comparison, it is necessary to add 10 per cent, thus giving differen- tial of $22O per ton. Rail rates be tween these two points are, 1st class, S2160 per ton; 4th class, S13.60; B class, $960; E class, $4.S0. This shows a difference in favor of the ocean haul of S2.60 per ton taking even the lowest class of the railroad The ocean distance between the two points is about 220 miles and it is about IA miles by rail-
 With regard to the question of loss from the operation of the Anchorage dock, the following points should be given consideration. All the oper- ations of the railroad are conducted at a loss. Why should anyone par ticular operating unit be singled out for liscontinuance unless it can be shown that no good purpose can be served by such operation or that the deficit therefrom can be overcome by the discontinuance. While it is true that by the closing of the dock the daficit from operating that particular unit will be eliminated, the other re sulting losses to the railroad will be productive of still greater deficit as will appear later in this discussion
 Tt is our belief, and we are conf dent that the records of the railroad will confirm this, that the Anchorage dock has repaid it's cost if it be giver credit for the railroad and other gov ernment freight it has handled with out charge. From the time the dock was placed in operation, in 1919, unti the close of the year 1923, this amounted to approximately 6O,00( tGas. The dock has never been cred ited for this, but on the other hand it has been charged with every con ceivable item of service performed ol furnished by other departments o the railroad, such as switching, crane service, lighting, water, depletion overhead, etc When such charges are made against its operation, i should most certainly be given cred it for the services it renders to the other departments. In spite of sucf Aharges, during all the years of its operation, except 1924, it has consist ently shown net operating profit.
 ITO select 1924 as a basis for show ing operations of the dock is unfair and does not furnish a true basis fol comparison The expense for this year was regulated upon a basis o1 greater business than was done. This shortage of business for the dock amde from the year being one of ex ceptionally light tonnage as a whole was due to a deliberate effort made by the railroad to divert tonnage tC the rail haul between Seward and An chorage. This was done by raising the wharfage rate in Anchorage t(