The Daily Alaska empire., 1942-03-10
ALASKA RATE HEARING

lile SuTCiidI6c, Cidhiiiii6 ui"o ohASe these shipments amounted to some 200, 900 tons last year if the regu- lar freight were assessed on this tonnage large portion of the sur charge would become absorbed ano this particularly so because it is now evident that shipments to ths l contractors in 1922 will surpass , those of 1941.
 It also developed that at it's for mer hearing the Commission had suggested that the joint rail and water rates maintained between the Alaska Steamship Company and the Alaska Railroad be discontinued and that the Steamship Company establish in lieu thereof a propor- tional rate for the water trans portation involved This was in- ended to result in reduction of the excessive freight rates collected 1 by the Alaska Railroad on ship ments consigned to shippers in the Interior The suggestion of the Commission has not been followed for the reason that MT. Ickes, un- der whose supervision the railroad is operated, put his foot down and refused to consent thereto with the result that the joint rates continue to the detriment of the people who depend upon the railroad for trans portation of their freight.
 I understand that the Maritime Commission can not enforce its suggestion because it has no jur- isdiction of the matter which seems to fall within the domain of the Interstate Commerce Commission MT. Darlington, the well known Alaska businessman, strongly urged abolishment of this joint rate; he pointed out that during the sum- mer months when transportation over the Richardson Highway is available the railroad reduces it. rates in some instances as much as SIP per ton and that in spite of this reduction shipper saves by transporting his merchandise ovel the highway and in addition tt that cost pays toll of $9 per ton in this regard MT Darlington maintained that an equitable divis. ion of the through tariff between the steamship company and tht railroad would help to eliminate the necessity for the enormous sur charge demanded, because in tha' case the steamship company woule receive a larger share for its part of the haul
 Bring General Increase
 The imposition of the surcharg' will naturally bring in its train { general increase in the commOdit, prices likely to result, if not in { complete shutdown of the only twt industries the Territory has. in ; serious curtailment thereof; neith CT the Territory nor the Nation can afford this. No argument ]! needed to prove that the cost Q mining rises sharply in times likl the present; the price of gold re mains stationary; all that goes in to it's production increases in scar city and price. Labor and i1iateria become more and more difficult t get with the result that only bon anzas can operate profitably ant there are few of them left in tn, Territory. The fishing industry i threatened with paralysis. Increased costs, lack of transportation ant other unavoidable conditions mak' this operation highly speculative and risky.
 Increased costs of living and th' difficulties facing the two industries tend to drive the population iron the, Territory and this should b. avoided at almost any cost. Oul fishermen are needed to produce { valuable article of food and what i more sorely needed to assist il the protection of our long coas line against enemy incursions, whill our miners, trappers and prospec. tors stand watch against infiltra tion into country peculiarly adap. ted to such practices.
 Suggest Remedy
 If the increased profits that may reasonably be expected to accrue to the carriers during 1942, together with the suggested remedies, ar. not sufficient to take care of ths increased costs, they should bt borne by the nation at large. Thi. was the opinion expressed on al sides during the hearing Alaska because geographically closer to tht theatre of war; should not be re. quired to carry alone. burder which should rightfully be borne by all the people of the United States. The government has requi. sitioned almost all our ships to the hurt" of our people but for the general good of the country. The people of the Middle West and oth- CT sections of the United States art