The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1945-11-12
Governor Asks ALL out WAR
Rates proiestPUT Directly
From AIaskans UP TO CHANG
6ruening Assails HastY
Hearing 10 Boost
Shipping Charges

Gov. Ernest Gruening TO-DAY call
ed upon the people of Alaska to
Join him in protest of projected
/ freight rate increases to Alaska
shipping. In particular, the Gov
ernor assailed what he terms 'un-
warranted and unjustified haste" in
ealing rate hearing at this time,
without sufficient notice to the peo-
pie of the Territory and its repre-
+ sestative groups to allow time for
counter action on the vital question
The Governors statement, which
he dispatched by wire to all princi-
pal cities of the Territory, reads
"On Saturday morning l received
a telegram from Delegate Bartlett
that he had been advised informally
that at the request Of the War Ship
ping Administration, an Alaska rate
hearing would be started in Seattle
late this month and that there was
strong belief that rates would be
increased from 80 to 100 percent
above prewar charges. Several hours
later I received further telegram
from him saying that the Maritime
Commission had entered an order
/ for tie hearing to start in Seattle
I on November n with the hope of in
/ creasing rates, fares and charges for
/ the Alaska service.
This being On Saturday afternoon
when government offices are close q
and Monday being likewise holiday
1t is not possible accurately to cite
/ the data available on just how such
an increase would affect Alaska, But
l desire to state that our Territory
might justas well fold up as a pros
pectively thriving and developing
part OF the United States if 100 per-
cent passenger and freight increases
are imposed upon us Indeed any
increases whatsoever would be SER
iously crippling
Rates Already ErcesSiUe
The steamship rates long have
been and are already excessive and
higher than for any other equiya-
lent service. They should be drasti-
cally reduced. My recollection is
that the annual freight and passen-
ger bill of Alaska is about $4,000 600
The proposal to double this, to
add another 100000 which would
be borne largely by the Alaska con-
sumers, would drive the cost OF liv-
ing to such astronomical heights
that it would be difficult for people
to maintain themselves here
1T would cause such an increase in
prices that corresponding increases
in wages and salaries would be IN
stantly demanded and failure to Sc
sure them would cause general ex-
odus from the Territory.
1T would cause a great increase in
the cost of operation of all govern
ment agencies in Alaska, whose bud
gets are prepared year in advance
and which coud scarcely accommo-
date themselves to SO drastic a
change without corresponding ac-
ton by the Bureau of the Budget
and the Congress-in itself ire
mendous undertaking
Staggering Burden on Alaska
In past years l have proposed to
the Territorial Legislature certain
changes in our tax system TO raise
mere revenue by trying to reach the
considerable numbers OF businesses.
groups and individuals now virtually
untaxed by the Territory OF which
the steamship companies incidentally
are outstanding examples since they
pay no Territorial tax whatsoever.
The result of such tax measures, if
adopted. would have been TO supply
Z the Territory with funds for roads.
/ airports. schools, hospitals and for
4 projects and services generally
beneficial to Alaska which in turn
would have built up its economy. But
no taxes ever proposed would have
added up to anything approaching
so staggering total as this prospec-
tive levy which would be handed
to three Seattle steamship compan-
/ les, ard none OF the benefits OF
which would be left in the Territory
Every cent OF this increase-amount-
ing annually to three times our Ter
ritorial budget-will go to absentee
business enterprises and nonresident
employees. 1t is the stockholders OF
Continued on Page EiohD