The Daily Alaska empire., 1947-02-01
Freight Rate
 Raise Eiiesi
 Discounted
Alaska Line Official Sees Liitle Change in
 Living Costs

Alex Mcdonald assistant vice. president and general manager of the Alaska Steamship Company, today in Juneau took issue with re- ferences that application of a 35 percent increase in freight charges over present fixed charges would send the cost Of living in Alaska "skyrocketing
 The 35 percent rate raise asked by his company and the Northland Transportation Company, as part of their interim plan for continuing shipping to the Territory after suspension of goyernment-operated service, would result, MT Mcdonald said, in an actual money increase of less than $10 per ton-or, ap- proximately one-half cent per pound.
 Since one persons food ccnsump- ton has been shown to be not more than seven pounds daily, the direct added cost on foodstuffs would amount to only three and one-half cents per day, or little more than one dollar per month. per person.
 Heavier cargo items. such as con- struction materials, machinery, tao, would bear the brunt of the propos- ed added freight charge, MT. Me Donald stated. In fact. he said, Gilbert Skinner, Alaska Line presi dent, on his last trip to the Terri tory informed many Alaska resi- dents of his intention to seek ad- justment cf rate structures so that increased shipping costs would be borne practically entirely by heav- Ter cargo.
 MT. Mcdonald said the snip op- orators proposal now before Con- gress, as outlined in Delegate Bart iett's wire to the Alaska Legisla- ture, puts the operators in posi- ton where they stand to lose, should the 35 percent rate increase not equal increased costs of fur nishing service; whereas the most the operators can profit under the proposal is six percent on their in- vestment. All profit above that would be "recaptured.
 T do not see,' Mir. Mcdonald declared, how the people oi Alaska can object to the interim proposal, unless they wish government oper- ation of Alaska shipping"
 An additional fact pointed out by the Alaska Line executive is that the War Shipping Admins tration. in operating the Alaska Steamship Company fleet during the year 1od5 lost s2,5o0,000 Fi- gures for the year 1946 have not been completed yet, he said, but, we already know that the WSA's 1946 loss on the operation will far ex- ceed that of 1945. The first six months of 1946 showed a loss of s1,600000.
 In view of strike interruptions during the closing half of the year, there is no doubt that losses will have mounted far in excess of those the year before.
 MT. Mcdonald questioned esti- mates from the Alaska Develop ment Board and other offices of The Territorial government that AL aska shippers have been saved S8.- 000,000 as result of blocking the shipping companies original rate increase request made last year. That information is misleading to the public" he declared.
 To arrive at any such estimate of saving, calculation must have been made from the time those ap- plications for increase first were filed with the Maritime Commis- sion. Yet, experience has shown that it has required two years to secure approval of application for a mere S2 per ton increase. C As a matter ot fact, he said, it was never intended that the rate increases applied for should have become effective before December 31, l946, when the VISA was to have turned back the ships to the com panies. So, MT. Mcdonald summed up, there has been no saving to the Alaska public" as result of rate agitation and not the $8,- GOO, 900 claimed"