The Wrangell sentinel., 1946-05-24
GOVERNOR SCORES
 FREIGHT RATE INCREASE
 AT WASHINGTON HEARING


 Gruening of Alaska this week told the Maritime Commission that any increases in Alaska steamship rates would retard development of the Territory
 The Governor was the first wit ness at a hearing to determine whether increased rates are justi- fled. The steamship companies contend an increase of 100 per cent is necessary to continue pro- fitable private operation.
 With adequate. appropriate, modernized, w-cost maritime transportation, with new ships de- signed for the Alaska trade instead of east-offs from other trades, there will be growth, progress and unprecedented activity in Alaska Gruening said. Without such 1 transportation there can only be atagnation and a continuation of the relatively empty, under-deyol- oped waste that Alaska has re- mained from the beginning of time Development must not be prevented by an increase in steam ship rates"
 A subcommittee of the House Marine and Fisheries committee was also named to investigate All askan transportation problems, fisheries and Coast Guard activit- ies. Representative Jackson CD-Wash. ] chairman, said the group will open hearings Monday on a bill by Del egate Bartlett (D-Alaska), to place Alaskan shipping under the Alaska railroad The transportation hear ings, he said, will be continued in Seattle in July and probably in Al aska in August.
 Other members of the sub-com- mittee are Representatives Bonner (D-N.C), Herter (R-Mass.) and Bartlett.
 Gruening told Examiner F. J. Foran that Alaska, as the only part of the United States invaded dur ing the war, has the right to de- mand and expect adequate defense preparations.
 The national policy and strate- gic defense, he said, require de- yelopment of the Territory.
 Poor and Irregular
 Under cross-examination by AL l hert E. Stephen, counsel for the Alaska Transportation Company, Gruening said steamship service | had been poor, irregular, insult | ficient and at excessive rates" He said travellers many times had to wait for weeks for transportation and the Territory needed more ef- ficient service.
 Gruening declared that despite increased air and road travel, the Territory depends principally upon steamship transportation.
 David B. Scholl, counsel for the Alaska Develoment Board, said the Board is opposed to any increase in steamship rates. He said he would introduce data prepared by the Office of Price Administration and War Shipping Administration to show increased rates are not justified.
 Lost Million Plus
 Guy M Carlon, rate expert of the War Shipping Administration, testified the agency lost $1, ,361, ,861 while operating the Alaska Steam ship companies during 1945. He said the figure excluded military and postal freight for which no charge was made and included on- ly commercial traffic.
 He said a statement by Repre- sentative Jackson (D-Wash.) that the agency lost $1O,OO0,0OO a year was silly"
 He testified that if the wage in- creases granted crew members last October had been in effect for the full year it would have been neces- sary to increase freight and pas senger traffic with the present sur charge 16.43 per cent and without the surcharge 35O6 per cent.
 On freight traffic only, with ad- ditional wages, he said, rates would have to be increased 43.92 per cent to balance expense with income.
 The agriculture department was authorized to intervene on its plea that agricultural interests twill be directly and adversely affected by any increase in rates for trans portation of farm products"
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