The Wrangell sentinel., 1942-02-13
By ANTHONY j.. .DIMOND
Delegate to Congress

By ANTHONY J. DIM0ND
 Delegate to Congress
 WESTINGHOUSE many letters telegrams and other communications have been received with respect tC the 459o increase in freight and pas senger rates imposed by the Alasks Steamship Company and the North land Transportation Company with the approval of the United States Maritime Commission that il is not possible to answer each by a separ- ate letter. This is intended to serve the purpose of a letter.
 I learned of the increase of rates through a telegram received from Wrangell, Alaska. No notice of the proposed increase had been given here, and 1 believe that no one had the slightest knowledge of it except the companies interested and the Maritime Commission until the Com mission announced it. No oppOrtun- ity was afforded to the residents of Alaska or other interested persons to appear and be heard on the sub jeet. Immediately upon learning of the increase, l inquired the justifi- cation for il and was told that the increase was asked for and allowed by reason of the need of carrying war risk hull insurance on the yes sels engaged in the Alaska trade, death and dismemberment insurance on the officers and crew, protection and indemnity insurance to cover war risk which is not included in the ordinary protection and indem- nity insurance, personal effects in surance for the officers and crew, wage bonuses to the crew, and in surance to cover wages and bonuses to the crew in the case of intern ment.
 Applied for Increase
 At first it was represented to me that the steamship companies had applied to the United States Mari time Commission to write the mar inc war risk insurance on the yes sels and that the Commission had declined to write such insurance at rate lower than that given by the private underwriters, and that in stead of writing the insurance the Maritime Commission granted an in- crease of rates. However, it now ap- pears that what really happened was that the companies did request the Fn tn n war risk insurance but that the com panies also applied to the Commits sion for increase of rates which was granted. In this connection it should be noted that under a law enacted by Congress in 1940, the Maritime Commission is authorized to pro- vide war risk insurance whenever it appears to the Commission that such insurance adequate for the needs of the water-borne commerce of the United States cannot be ob- tained on reasonable terms and con- ditions from companies authorized to do an insurance business in a State of the United States" It is clear, however, that in the partic- ular instance the Maritime Commits sion has declined to furnish the steamship companies operating in Alaska any insurance at a rate low CT than that provided by the private insurance companies.
 As soon as 1 was able to get an outline of the facts of the matter, protested the rates and insisted strongly that the people of Alaska such rates were put into effect. insisted that there was nothing in the record to show that the rates were justified; that no knowledge was available of the result of the operations of the companies in 1941 and hence it could not be known to anyone in Alaska whether or moi any such rates could be justly charged. I also pointed out that il a similar case where the risk was equally great, namely, that of the Watson Steamship Company serving Hawaii an increase in the steamshi, rates of only ten percent had beer allowed as compared with the 45 z increase in Alaska. Officials of tht Commission said that the action talk en in the case of the Matson Steam ship Company was a mistake, an( thereafter hastily took proceedings whereby the Watson rates were in creased 35 but even this increase where the hazard must be as grea as in Alaska, the rates allowed ar, 10% below the Alaska rates.
 Horse Feathers"
 Finally a hearing on the subjec was ordered by the Maritime Com mission originally set for Wednes day, January 21, and then postpone, at my request until Friday, Janu ary 23, in order to permit Governo Gruening of Alaska to be present The hearing was held yesterda and occupied the entire day.
 The only evidence adduced by tn Alaska Steamship Company was tha