The Daily Alaska empire., 1946-05-25
ATC MANAGER OPPOSES RWY. OPERATOR
Ship Lines Apparently Drop Sights on Boost
 -'NominaI' Asked

WASHINGTON, May 25.-Cross- examination of S. J. Swanson, Vice President and general manager of the Alaska Transportation Com pany, failed to draw from him at the Maritime Commission hearing yesterday how much increase in Alaska steamship rates he believed necessary to enable the operating companies to make a profit.
 During the afternoon session, Swanson avoided direct answer concerning the amount Of increase he believed the commission should allow He said his company would be glad to see the War Shipping Administration continue the oper- ation of the Alaska service for time, even at reduced charter rates.
 Again RGtlroad Competition
 He said the VISA reduced freight rates 60 percent and planned to reduce passenger charter rates 33 percent. He added, however, he op- posed government operation of steamship service to Alaska as pro- vided in the Bartlett Bill which proposes to have the Alaska Rail- road operate water carriers from Seattle.
 'The Alaska Transportation Com pany does not want government operation in any trade" Swanson said. The War Shipping Admin istration should continue operation until the present rate situation is cleared up."
 VISA took over operation of Alas ka vessels during the war on bare bottom charter rate.
 Swanson suggested the trade can stand some rate increase consistent with the general price increase in this country"
 Highly Seasonal Trade
 Our trade is highly seasonal and someone has to pay the cost of pushing idle ships around when there are no cargoes available" He expressed belief it was time the government took hand and said a subsidy should be forthcoming.
 He blamed some of the high cost of Alaska shipping service on trade unions which he said did not live up to contracts and said everyone" looks with fear to June 15, when the maritime strike is scheduled.
 He agreed with David Scholl, counsel for the Alaska Development Board, that canned salmon should carry higher freight rate, but said it if was set too high the salmon packers might purchase their own boats to transport the pack to the United States.
 67 Percent Boost Too Much
 Scholl and other members of the government counsel tried to get the witness to define what he meant when he said he believed ''nom- inal" rate increase should be grant, ed. He said it was not the 674 percent he, testified would have been needed to balance the books last year if the ships had been handled by his company. That, he said, would be more than the pub lie can stand. and more than 1t should be asked to stand
 Norman B. Stines, counsel Tor Nome and Fairbanks, Alaska. who presented a plan for improving service to the Interior though Jomt rates for steamers and the Alaska Railroad, was prevented from ex- planning his plan by the examin- CTS ruling that railroad rates had no place in the present hearing.
 Stines was permitted to testify, however, that the railroads rates were stifling the Interior gold min- ing industry He asked decrease in steamship rates.
 Scholl introduced government statistics intended to show ship ments from the United States to; Alaska would increase next year.