The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1942-01-22
SeaffIeC.ofC.
Investigates
Raie Ifllrease
Reasons for Raise in Alas
kan Shipping Costs
Are Outlined

sgi .6S
The justification for a As per
cent increase in freight and pas
senger rates ON Alaska steamship
! lines was reviewed this noon before
a meeting of the Juneau Chamber
of Commerce in a letter from Foster
l.. McGovern, assistant eneral
manager of the Seattle Chamber
of Commerce.
Asked by the Juneau chamber to
investigate the rate increase,
special committee of the Seattle
organization made thorough cans
vass of the situation. Their reply
to the local group was as follows:
This letter is in answer to your
inquiry with reference to the an
nounced increase of As per cent in
the freight and passenger rates to
Alaska. Z Your letter mentions only
the Alaska Steamship Company but
the rates apply to the other AM
erican lines to Alaska as we'll
This question was brought-up for
discussion at the meeting of the
Chambers Alaska Committee last
Thursday and special committee
was. appointed to meet with the
steamship companies to ascertain
the justification for the rate Gin
crease and to make constructive rec
concentrations as to what the
Chamber might do. The committee
was composed of Volney Richmond,
Jr., Northern Commercial Comp
any, Chairman; M. Dederer, Seattle
Fur Exchange; and A. W. Wittig,
Shepard Point Packing Company,
so you see that is was representa-
tive of Seattle and Alaska business
and industry We met with Mr..
McKinstry of the Alaska Steamship
Company, who is the top executive
when Mr.. Baker General Manager
and Mr.. Boyle, Vice-President are
out of the city. Mr.. Peterson, in
charge of passenger traffic, also
participated in the conference We
discussed the matter at great length
and found that the principal causes
for the increase in operating ex-
penses, which brought about the
As per cent surcharge, were as
follows.
l. The companies must now carry
war risk insurance on the hulls in
addition to regular maritime in
stirance. This is a very heavy
charge. The new rates we're invest
igated and approved by the insur-
ance divisio nof the Maritime Com
mission J
2. The companies must cart y
death and dismemberment insur-
ance in the amount of $1,000 On
each member of the crew
8. Wages are tremendously in
creased for unlicensed men and
licensed officers due to the payment
of war bonuses, the amounts of
which were prescribed by the Mori-
time War Emergency Board. Far
thermore, they are retroactive to
December 7.
4. Frequent delays in ship opera
ton due to the vessels being ordered
by the Navy into the nearest port
This has varied from few days
to several weeks This expense
however is not included in the as
nor ropt if,orooco ~, +or;ff
The U. S. Maritime Commission
made careful examination of all
OF the figures presented by the
steamship companies and our COM
mittee assumed that the public in
terest had careful consideration
Our committee, realizing that the
"a per cent increase would have to
be born in the main by the Alask-
ans. sought some plan under which
some relief might be brought. Mr..
Baker and Mr.. Boyle arrived in
Washington this Monday to discuss
the matter with the Army, Navy.
and Maritime Commission officials.
We decided that the best coopera-
Ion we could give would be to in
struct Mr.. j. j. Underwood, Manager
OF this Chambers Washington Of
| ttce, to contact these men and.
acting in the public interest and
rs a representative of Alaska and
Seattle business men, work with
Mr.. Baker and Mr.. Boyle in an eff
.ort to find aesolution to the prob
iem. This action was recommended
TO our Board of Trustees and an.
proved Mr.. Underwood was so
instructed and is in touch with the
sbove officials of the company +
know of two or three plans which
| nave been suggested but don't
feel at liberty to tell you of them
as they may not be the proper
answer to the situation.
Our committee was convinced, on