The Daily Alaska empire., 1946-08-06

That is so, he insisted because ! present rates are based upon the value of the Lines pre-war fleet which is but one-fifth the invest ment that would be required to put suitable new ships on the run. MT Skinner also said that he is con- fident the company could finance construction of new fleet, but the rates necessary to bring a re- turn on that investment. plus added insurance and depreciation charges, would be far beyond the ability of the people of the Territory to pay.
 Lines Purchase Price Committee Council Marvin Coles questioned the Alaska Steamship Ccmpanys method of establishing it's present investment. His quer- ics brought from Skinner that S4, ,290,000 was the purchase price of the line when Skinner and Eddy Corp bought it from the Kenne- Cctt Copper Company in l944. Of that amount. $900,0O0 was paid in cash and approximately S2,50O,00O in government bonds were pledged on a loan for the balance. Short ly afterWard, $210,000 more in cash was put into the business. Skinner summed up the total original in vestment at four and one-h&If mil lions. A considerable portion of the loan has been repaid, he add cd; but from the profits of Skinner and Eddy, not from Alaska Steam ship Company profits.
 Then, is not the company's act ual investment a little over one million dollars, plus notes, and was not the basis for the l940 rates an investment of nearly seven million dollars? Cole asked
 Asked if any of the vessels built during, the war are suitable for Alaska service, Skinner replied that some cargo vessels are, of the coastal type the VISA has now put into operation to Alaska, such as the Knot ships.
 Feeder Ships
 Asked if thought had been given to the operation of small feeder vessels run to smaller ports to bunch freight at main ports, Skin ner replied that it had been tried A feeder ship was run cut of Sew ard tefore the war, he said; but, it was a very expensive operation. The reason it won't pay, he said, is that operating efficiency is more than offset by doubled handling costs. He referred to testimony given earlier in the day by Ju- neau attorney Norman Banfield, wko had appeared as counsel for the town of Haines.
 Banfield had cited that longshore- men here nc longer permit trans fermen or merchants to themselves load a single trunk or three cases Of canned goods" On the M. s. Es- teheth for shipment to a small port instead, they now require the call ing of a full longshore crew-five men and a boss-for at least two hours to do "a five-minute job.'
 SerUice Not Adequate
 In opening his statement, Skin ner volunteered admission that the service his company has been able to give Alaskans-particularly pas senger service-is not adequate. The 50 percent of the Lines tonnage lost or disposed of during the war should be replaced, he offered.
 In asking that Alaska ship op- orators be certificated, Skinner held out for "grandfather" rights giving pricrities to companies already es- tablished in the service.
 Questioned regarding his reaction to elimination of Jones Act discrim- inaticn against Alaska service by foreign ships, as had been suggest ed by the first witness of the day, Attorney General Ralph J. Rivers, Skinner said he could not see where it would make much differ ence if applied only to traffic through Prince Rupert to Alaska. Only carload shipments from the eastern part of the United States could likely te so handled, he off, fered, and they would be few. The principal effect, he contended, would be to deprive American railroads of business and give it to a Can adian railway.
 And, if the restriction were re- moved for shipments out of Seattle also? questioner Coles asked.
 Somewhat better service for