The Wrangell sentinel., 1945-12-14
THROUGH THE SENTINEL PERISCOPE


 CTS who represented Alaska's in terests at the recent freight rate hearings in Seattle. we aNre indebt- ed for the following:
 The U. S. Maritime Commission rate hearing which I attended as Attorney for the Territory of AL aska, turner out to be much more than preliminary proceeding Three and a half days were con- sumed in actual sessions during which the carriers. acting as a. gents for the War Shipping Ad- ministration. made a complete pre- sentation of their evidence in sup port of Admiral Lands petition for an increase in freight tariffs prior 10 returning the ships to the car rier companies for private opera ton. Also, in ruling on the scope of the inquiry, MT Thomas Wood ward. the Commissioners eXamin- CT held that the matter was not only rate hearing but an over all study of very serious situa- lion. Accordingly, the Territory took full advantage on cross exam ination of the opportunity to ask in detail what the factors were that would make necessary the suggested increase of 1000a, and to bring out what relief should he granted. if any were necessary. to enable the companies to operate without a loss
 The companies based their re- spectiye phases of the case on their 1889 records. It was explain ed that this was the latest year in which tonnage was not affected by national defense Or war activ- ities. On the postulation for 1946 of an operation equalling Alaska water borne trade in 1889, they listed all the items of expense of 1889 operations and, in a separ- ate column adjusted them to the higher 1945 costs. estimated to be the approximate level for 1946. They then measured 1889 revenut against those projected 1946 costs on the basis of which figures there would be a heavy operating deficit. Concluding contentious were that to meet sush inrreased costs and obtain 2 compensable return on their investments the companies would need rate increases as fol- lows:
 Alaska Steamship Co.,, 106 %;
 Northland Trans. Go. 58.8%
 Alaska Transportation 103%
 These results were had on the basis that passenger rates could not be raised because of competi- ton from airplane carriers and Canadian ships, and that freight would have to bear the entire bur den.
 Part of this unbelievable result was attributed to the present high cost of doing business reflected in high wage rates, cost of ship re- pair and maintendnce, cost of food and other supplies. About 75% or the increase was blamed by the witnesses on the present labor sit uation. All of the transportation executives who testified expressed themselves in favor of maintaining high wages, and contended that increased wages is d minor item compared to the incidental expense of having ships tied up at various ports under showdown cargo hand ling practices, thus causing a long CT turn-around time. They all said they cannot improve efficiency un- less they can exercise some right of selection in the hiring of men and regain the right to fire a fel- low who is unable or unwilling to do A fair days work. The witness es also insisted that they needed the right to hire and control de- partment heads such as head stew ards. first mates and chief en- gineers.
 When asked what effect 1O0% increase in freight tariffs would have on Alaska, they all said it would cause stagnation instead of development, and reduce tonnage and jobs. In other words, the steamship executives were them selves unanimous in the opinion that such an increase would be self-defeating.
 When asked if they saw any prospect of efficiency increasing, they all said they could not see it unless control of operations with the right to hire and fire was put back in their hands Alternative stated Perpetuation of high oper- ating dost and conditions with a subsidy by the government, or ces- sation of operations altogether.
 On he other hand a representa- tive of the Maritime Stewards Un- ion explained that Union Head quarters had suffered an almost impossible task under war time labor shortages, recruiting enough