The Daily Alaska empire., 1942-03-10
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 4,000 in mail revenue on each of these special trips; that on these special trips the boats make no calls at regular ports between Ket- chikan and Seward and that the mail which they do carry to those posts is paid for on poundage basis which is very nominal. He stated that immediately after the declaration of war on December I the mail contract on the Alaska Peninsula was cancelled and the service ordered discontinued and that this amounted to an annual loss of $l05,000.0C.
 When asked whether it is less expensive to haul these solid ship loads of defense cargo than it is to call at the regular ports, he an- swered that it is in normal times but not under present conditions in that it takes now considerably longer to make trip than it did before the present emergency com- menced That because of the con- gested conditions and limited ter minal facilities it takes more time to discharge at the defense ports than would be used at the regular ports and that due to Navy and Army regulations there is sub- stantial lengthening of the voyages, and that in some instances it has taken twice as long to make a round trip as it did in normal times.
 He further intimated that of the sharp decline in southbound ton- mage now anticipated does in fact materialize his company may be confronted not with the possibility of reducing general merchandise rates but rather with increasing them to compensate for the loss that may be sustained on that ac- count. When asked categorically why the surcharge is requested, he answered.: the purpose of the sur charge is to compensate us for ad- ditional expenses in assuming the burden of war risk hull insurance, bonuses to all members of the crew, life and dismemberment insurance for the crew, personal effects in surance for the crew, internment and repatriation insurance for the crew; delays for the vessel are not intended to be covered by it ex- cept to the extent of the ships actual expense during the addition al number of days but without giv- ing consideration to the loss of use or the earnings of the vessel dur ing the extended period of delay For instance, one of our freighters on a trip normally not exceeding 30 days. required actually 59h days with loss of use of that ship of one whole voyage"
 1940 Hearings
 During the hearings in 1940 when the question of prospective opera tions for 194l were under consider ation. the carriers painted a pie ture for that year as gloomily al- most as MT. Baker paints for the present season. There is sound req son to believe that the salmon op- erations in Bristol Bay and other western sections will be materially curtailed and that on that account the traffic north and south during 1922 will not equal that of last year. On the other hand it is equally certain that the ships will be more than loaded to the guards on their northbound trips and that any loss sustained from the lack of southbound cargo will be taken care of by this additional business 1941 proved the most profitable year the carriers have had and it may not be amiss to say that when the books are closed at the end of 1922 that year will reflect a greater profit than any previous one in the life of their companies
 It was also disclosed during the hearing that the government con- tractors enjoy rate considerably lower than that imposed on other shippers. When the reason for this was demanded the carriers replied they had to grant the rebate or lose the business. This situation has come to light at a former hear ing before the Commission At that time the Commission found that the Navy bears these freight charges and that the contractors do not profit from the lower rates; that those rates are not below a compensatory level and that they do not influence other rates or traf- fic and that they are not unlawful.
 Again Brought Up
 This subject came to the fore again at the recent hearings and much stress was laid upon it by those imposing the imposition of