The Daily Alaska empire., 1947-05-14
FREIGHT RATES ARE DISGUISED,
 kIWANIS MEET

fore the Kiwanis Club today
 Rogers serves the Governor office in an advisory capacity, and recently has been particularly con cerned with the shipping problems in Alaska. He formerly served the Office of Price Administration in a similar capacity.
 The proposed .35 percent increase which the Alaska Steamship Com pany and Northland Transports 'tion Company contend they will require to continue operations, said Rogers, is weighted in favor Of the steamship companies.
 Buried in the new tariffs are tremendous increases on such items as groceries and meats and other freight which will have a vital effect on living costs in the Territory, he said.
 Rogers stated flatly that the "so-called 35 percent increase is cut of line, and should not be thrown onto the shoulders of the people of Alaska.
 For many years, Ae explained, the two major shipping concerns have weighted the freights heavily in favor of the Alaska fishing in terests. For an example. Rogers took the comparative freight rates for canned salmon and general cargo between Seattle and Ketch- ikan and Seattle and Dillingham;.
 The distance from Seattle to Dillingham; is approximately three times the distance to Ketchikan. The rate on general cargo to Ketchikan is sl4 per ton; on can ned salmon between the two ports 5000 per ton.
 General freight between Seattle and Dillingham; is S29 per ton, over twice the rate to Ketchikan. But on canned salmon, the rate is Sl3.60 per ton, even less than the general freight between Seattle and Ketchikan
 Instead of eliminating such dis crepancies, the proposed new freight tariffs will increase it, said Rog- CTS. The raise on the general cargo classification is 49 percent, and on canned salmon, 48 percent.
 Rogers largely exonerated the AL aska Transportation Company from responsibility in the present efforts to raise the rates. Up until the time of the war, ATCO operated al- most continually at loss. They are minor factor in the shipping of the Territory, carrying less than 10 percent Of the total tonnage during 1945.
 Yet Alaska Transportation Con- pany proposed net increase of IT percent as the minimum on which they could properly operate with the assistance which the Maritime Commission has prepared to give the companies when they return to private ownership in June.
 Alaska Transportation Company is the only one of the three lines which mas made any effort to cor rect the. abuse of discriminating against regular ports of call in fa- vor of the seasonal ports of call, Rogers said.
 Rogers cited four bases on which the steamship lines found their ar gumentS for increased rates. First is the labor problem, which became accentuated during the war. Second is the overcrowded and inefficient port facilities in Seattle.
 Third reason is the age and con- dition of the ships used ill the Alaskan trade, most of which date back at least to the First World War; and all of which are seriously in need of major overhauls or ac- tual replacement. The fourth rea- son hinges or the third, and is the increased cost Of hull and risk in- surance, reflecting the condition of the ships.
 Explaining in more detail some of the increases which the steamship lines are asking in their new tar if, Rogers cited some examples.
 Autos and trucks, which in 194l were $50 per ton, are now S58 per ten, under the new tariff would be S90 per ton. This is an increase of 55 percent over the present rate, and 80 percent over the 1941 rate.
 Cement shows a AZ percent in crease over present rates, and 73 percent increase over the 194l tar if. On lumber the percentage in crease over the present rate is 53; and over 194l, 78 percent.
 Freight, not otherwise specified, or general cargo will be increas- ed .49.5 percent over the present rates, and 73 percent over 194l.
 The increase on hardy fruits and vegetables is 88 percent over the present rates and only 56.5 percent over l941. On frozen meats, the in- crease is 50 percent over he rates now, as compared to a "A percent jump from i941.
 Those, Rogers pointed out, are the type of increases which will hurt residents of the Territory AL aSka has entered a prOte S t