The Daily Alaska empire., 1931-01-08
NOT HIGHER RATES BUT LOWER
 NECESSARY.

The oracle has spoken The management of the Alaska Railroad has been loose and guilty of m efficiency in conduct of the Governments rall property. Passenger and freight rates are too low These are the conclusions of the Senate's Select Committee composed of Senators R. B. Howell, John Thomas and J. B. Kendrick, which last Sum- mer spent several days Investigating the road
 The Empire is not in position to dispute the Committees charges of looseness and inefficency of management. Records which either substan- tiate or disprove the allegation are not available to the general public But there is a word to be said in defense of the management. It has been supervised by the Interior Department. It has never been management in the sense that private ly owned and operated rail properties are man. aged. It is true that there has been at all times, since operations began, an officer at the railroads head with the title of general manager. But he has been so in name only. Policies and many acts of administration the decision to personnel, have been subjected to departmental interference and political influence has on more than one occasion been permitted to undermine the authority and shacke the power of the management. Pos ebly these things are inherent because of public ownership and operation Certainly they are fac tors that could easily negative the efforts of the most efficient rail operative And such they should be taken into consideration by the Senate and by the general public well. Condemnation of any management because of things it could mol possibly eliminate is manifestly unjust.
 But these are only minor defects. Correction is possible but hardly probable To remedy them it would be necessary to remove the road entirely from political jurisdiction and give the man ir charge free hand, something that the Senate judging by many precedents, is not likely to dc itself or to approve if some other branch of the Government attempted to bring about. However is thnra vii he n1Or Ol less looseness and inefficiency in management.
 The recommendation of the Committee tha freight rates be raised 50 per cent and passenger fares 66 2l3 per cent is fraught with seriousness to those sections of the Territory dependent almos wholly upon the railroad for transportation faci ties. As a policy it is not designed to accomplish the very thing which the Committee points out and correctly so the object to be attained namely the building up of outgoing traffic It cal result only in handicaps to development whicl will work not only to prevent tapping the source of business but is bound to curta operation of existing industries and add to rather thai decrease the much discussed deficit Thus it is tn very negation of the broad policy that has lon been recognized as the fundamental requirement. 70 transportation systems seeking to open up pionee lands
 The experience of the Alaska Railroad is no unique Every early Western railroad had its exac counterpart Those roads did not successfully ope up the West and develop themselves into the fin properties they now by undertaking to mak every pound of freight and every passenger pa the cost of hauling them from place to place brought settlers to the vacant lands opened tn forests and mineral deposits, built up various indus tries by making rates low that almost anyon could afford to travel or ship. If the Alask Railroad is to be the development agency to ope up the vast interior country which contem plated when the Federal Government committe itself to the enterprise, it will have to pursue similar policy. If it is compelled at this time raise it's rates. it most likely will prove dsastrou to the Territory and suicidal to the road itself. it is possible. rates should be reduced the mo- direct encouragement that can be given to settle ment and industrial development In any even the Senate ought to reject the Committees recon mendation for higher tariffs