The Daily Alaska empire., 1945-11-27
Alaska Freight Rate
 Hearing Started; No
 Posfponement Granted


 the very economic survival of Alas ka is at stake" at the opening today of the Maritime commissions hear ing into the Territorys water freight and passenger rate structure.
 He asked Examiner Thomas Wood ward. former Maritime commission member, to postpone the session at least six months or limit 1t to pre- liminary matters, arguing the Terri tory had been given no information as to the financial situation of the companies in the Alaska trade, their operating efficiency or other data.
 Examiner Woodward postponed a formal ruling but said the hearing must proceed as scheduled. The War Shipping Administration, operating the companies during the war, has petitioned for complete examina- tion of rate schedules. The compa- nies will soon revert to private op- orators.
 ! Rivers efforts to delay the ses- sions were also backed by Malcolm D. Miller. Washington, representing the Office of Price Administration, representatives of the Departments of Commerce and Agriculture and Harold O'Neill, of the Alaska Salmon Industry, Inc.
 G. w. Skinner, President of the Alaska Steamship Company and c. M. Mitchell, Secretary and Auditor, were the first witnesses called.
 Costs Increased
 I Generally it has been found that all costs have substantially increas- ed and that freight rates have not kept pace" Skinner said.
 Outlining the many problems of increased costs, he recommended that the VISA or the Maritime. com mission should continue to operate with the lowest possible rates, at least until beginning of the summer season. He suggested the govern ment should stand reconyersion ex- pense for ships taken over and that subsidies because of Canadian com- petition should be considered. Details Expenses Mitchell submitted detailed ex- pensc exhibits. A profit of $326,- O69,26 after taxes was earned on gross revenue of s6,645,149 in 1888, which he described as the last year of normal operations. On 1945 business, with the same 1899 rates, that would be converted into a $5,422, ,82936 loss. he said. His ex- hibit showed increased costs in over- time of crews, fuel, food supplies, board money, insurance, stevedoring and other items.
 AS the hearing opened, John B. Jago, of Washington, special coun- sel representing the VISA, read a statement from William Radner, general counsel, in Washington, saying the VISA lis informed and believes the present rate structure is not compensatory" No specific new rate structure, however. was recommended. Jago said he would have to leave later today for San Francisco.
 Miller, representing the OPA, moved at various times that the VISA petition Ee dismissed altogether stating that the petition for increas- ed rates should have been asked by the companies directly, and also ask ed that supplemental nearing be held in Washington and Alaska. They were taken under advisement.
 Among other concerns and per- sons who formally made appearances at the hearing were the Alaska Steamship Co.,, the Northland Trans portation Co.. Ed Medley, represent ing the Cordova Chamber of Con- merce, Rivers, for the Territory, O'Neill, for the Alaska Salmon In- dustry, the VISA, the Santa Ana Steamship Co.,, and Salt Lake City mining concern.
 | Medley will file formal state ment later in the hearing.
 Here in Juneau today Robert A. Henning, Acting Secretary of the Alaska Development Board, revealed the Board voted, four to one, to go on record with the following state ment which it authorized and direct ed Attorney General Ralph J. Riv- CTS to present for the record at the present hearing in Seattle
 "The Alaska Development Board, a Territorial agency committed to the promotion of Territorial indus trial expansion, demands in behalf of the people of Alaska that cur rently scheduled hearings on propos- ed water freight rate increases from the United States to Alaska be post poned for a minimum of six months. Proper study of rate structures is im- possible in the short time allowed by the present schedules.
 Existing high freight rates render
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