The Daily Alaska empire., 1930-09-22
TARIFF RAISES
 ARE FORECAST
 BY COL. 0hLSON
Alaska Railroads General Manager Predicts High
 CT Rates Shortly

An increase in both freight and passenger tariffs over the Alaska Railroad, in the near future is forecast by General Manager o. F. Ohlson, as a result of the recent investigations of the Select Senate Investigating Committee that re- gently concluded it's hearings and has returned to the States. While he has no information on the tenor of it's report to the Senate, he is strongly of the opinion that higher rail rates will be inevitable.
 Col. Ohlson arrived here Satur- day evening from Ketchikan. on the Fisheries vessel Crane, Capt. J. j.. ODonnell, and will visit with Gov. George A. Parks until tomorrow . leaving for Seward on the steamer Northwestern.
 Deficit Reduction Sought
 "The Senate Committee did not come to Alaska to junk anything, tear the rails up or shut down the railroad" declared Col Ohlson. Tt was largely concerned with ways and means of reducing the annual deficit of the governments rail holdings in the Territory. The one question asked every witness ap- bearing before the Committee was: How do you think the operations of the Alaska Railroad can be made profitable?' And there was no satisfactory solution offered.
 T think it is extremely probable that there will have to be an in- crease in both freight and passen- ger rates. Existing tariffs are low, much below the charges made by railroads owned and operated by private corporations in the Terri tory. We charge six cents per mile for carrying passengers as compared to 12 cents on the Copper River and Northwestern Railroad and 20 cents over the White Pass and Yukon. Freight rates over those lines are from IS to 150 per cent higher than our own rates"
 Reducing Expenditures
 Col. Ohlson did not make any prediction of the amounts by which the current rates would be boosted. Probably these will have to be worked out after the report of the Committee is made to the Senate.
 It is apparent that by increasing the tariffs and reducing expendi- lures for operations, it is expected to make a heavy reduction in an- nual deficits if not entirely wipe them out. But while this is being done, there will be no let down in the efforts of the rail management to foster industrial development in the region traversed by the road.
 Visioning his task broadly, Col Ohlson frankly admitted operating the road is not difficult task, and the smallest part of his job. The great burden lies in the develop ment of industries and settlement to a point from which the traffic produced will be large enough to make the road self-sustaining.
 Gets Temporary Setback
 The hearings of the Senate Con- mittee, unfortunately, have caused a feeling of uneasiness along the road that has not been conducive to the best conditions. Also, at least, temporarily, the immediate reaction has resulted in cancelling certain industrial development plans from which considerable has been ex- pected from the railroads revenue outlook, and from the viewpoint of Territorial development.
 However, the management, CO., operating with other Federal bu- reaus, is going ahead with certain phases of it's development program without Encouragement. It sees in the reindeer herds of the north a potential revenue of several hun dred thousand dollars annually to