The Daily Alaska empire., 1946-05-22
Rafe Increase
 Is Protested Al Wash. Hearing
House Subcommittee Nam- ed for Inquiry-Agrieul-
 lure Dept. Intervening


 WASHINGTON. May 22. The Governor of Alaska told the Mar itime Commission today any in creases in Alaska steamship rates would retard development of the Territory
 The Governor was the first witt ness at hearing to determine whether increased rates are justi- fled. The steamship companies con- tend an increase of nearly 100 per cent is necessary to permit pfofi- table private operation.
 With adequate. appropriate. rso- dernized low-cost maritime trans portation, with new ships desiancd for the Alaska trade instead Of cast-offs from other trades. there will be growth, progress and unprc- cedented activity, in Alaska" he said Without such transporfa- ton there can only be stagnation and continuation of the relatively empty, under-developed waste that Alaska has remained from the be- ginning of time. Development mus, not be prevented by an increase in steamship rates"
 Jackson Heads Committee
 A Subcommittee of tt.e ho, Marine and Fisheries Committee was named today to investigate the Alaskan Transportation problems. fisheries and Coast Guard ,activi- ties. Y Y s. '
 Rep. Jackson (D-wasii.), ap- pointed Chairman, said the group will open hearings Monday on 2 bill by Delegate Bartlett D-Alas- ka), to place Alaskan shipping un- der the Alaska Railroad. The trans portation hearings. he said, will be continued in Seattle in July and probably hearings in Alaska next August.
 Other members of the Subcom- mittee are Reps. Bonner (D-NC), Herter tE-MasA). and Bartlett.
 Alaska's Governor told examiner F. J. Foran that Alaska, as the only part of the United States in- vaded during the war, has the right to demand and expect adequate de- fense preparations.
 Defense Requires Development
 The national policy and strategic defense. he said. require develop ment of the Territory.
 Under ross-exarnipation by AL bert E. Stephan. Counsel for the Alaska Transportation Co.,, the Governor said steamship service had "been poor. irregular, insuffs- cient and with excessive rates" He said travellers many times had to wait weeks for transportation and the Territory needed more efficient service.
 He declared that despite increas- ed air and road travel the Terri tory depends principally upon steamship transportation.
 David B. Scholl counsel for the Alaska Development Board, told the hearing the Board is opposed to any increase in steamship rates. He said he would introduce data prepared by the office of Price Ad- ministration and War Shipping Administration to support the con- tention increased rates are not justified.
 Hearing Recess Requested
 Stephan broke in to say that when this date is introduced 1t would be necessary for the steam ship counsel to ask for hearing recess to permit study of the data.
 Guy M. CarIon, rate expert of the War Shipping Administration. testified the Agency lost $l,361,8 ,86l while operating Alaska Steamship Companies during 1945. He said the figure excluded military and postal freight for which no charge was made and included only com mercial traffic.
 ' $l0,OO0,0O0 Loss "Silly'
 He said a statement by Repre- sentative Jackson D-Wash., that the Agency lost $lO,oOo.ooO year was silly"
 Carlon said that based on the loss last year the Agency. to break even with the existing supercharge of Is percent on freight and pas- senger traffic would have to in crease rates l2.17 percent and with out the supercharge it would be necessary to increase rates 30.ll percent on freight alone.
 He testified that if the $45 month wage increase granted crew