The Daily Alaska empire., 1947-05-02
Exclusive Clause Granted
 Seattle Companies Raises
 Objections, Many Sources

Commerce who attended the con- ference joined the congressman in urging that the Commission eliminate the exclusive clause but allow the Seattle firms to go ahead with the Alaskan service with the understanding that any other ship ping firm wishing to compete may do so on the same terms.
 Witnesses testified that at the time the contracts with the Se- attle firms were prepared no other shipping companies were interest ed.
 Fight Rate Increase
 Alaskans announced they would fight the proposed increases, though they said the shipping companies had notified them they they would not start the privately operated service if the rates were opposed.
 Since early in the war the ser vice has been operated by the gov ernment at a loss and the lines must be returned to their owners by June 30.
 Joseph K. Carson, member of the commission, was present yes- terday and was asked to present the request for elimination of the exclusive clause in the Seattle contract to the commission.
 Rep Jackson (D-Wash) former chairman of the House Territories subcommittee which worked out the law under which the commission would contract with the Seattle firms told the conference efforts had been made to find other lines interested in i. the Alaskan trade without success.
 No Monopoly Favored
 T am not in favor anytime of monopoly Jackson said. but we simply were unable to get other shipping firms interested in the Alaskan trade. I want some coni- petition in that trade
 Other members of Congress maintained the Commission had no right to give the Seattle com panies exclusive rights to the Alaska trade Alaskas Governor said:
 Alaska is opposed to the Mari time Commission plans to lar com- petition in the Alaskan trade.
 Competition from Portland and California would benefit not only Alaska but the entire Pacific Coast.
 "A California company could de- liver citrus fruits and other pro- ducts to Alaska and bring return loads of Canadian paper and Amer ican salmon to California.
 The exclusive clause should be eliminated to permit any company to come into the trade on the same basis as the Seattle companies whenever they wish
 Bartlett.s Views
 Delegate Bartlett said the gov- ernment subsidy to be furnished the Seattle companies in the way of ships and insurance will amount to several million dollars year.
 That subsidy was intended by Congress to benefit the people of Alaska" Bartlett said, and not to benefit the shipping companies and give them higher rates as they de- mand.'
 Maritime Commission experts said the Seattle steamship compan- ies demanded they be given the ex- elusive right to furnish the Alaska service.
 The muddled situation leaves Alaskans now facing possible in terruption of shipping just after the start of the fishing season, which furnishes the majority of the Alaska outbound freight in the fall and requires incoming sup plies in the spring and early sum- mer
 We have been without service before" the Governor said. and can do it again. Alaskans prefer to take a chance on no service rather than give Seattle exclusive right to furnish us the service