The Daily Alaska empire., 1947-11-05

the witness is blaming practices cn the steamship companies that are beyond control of the ship lines
 Sundborg later submitted his own compilations of Alaska ship voy- ages of all three Seattle companies from May 29 to September 30 this year, which he said revealed "over- servicing in a very uneconomical way in Alaska ports"
 He also charged that asserted duplication" of office and ter minal facilities in Alaska ports by Alaska Steam and Northland mounted to virtual feather bed- ding in the upper brackets of man. agement," beca-se, he declared, both are under common ownership.
 Peterson TeStfies
 The days last witness was H. N. Peterson, passenger traffic manager for Alaska Steamship Company. He explained that weather conditions caused three ships to be in and around the fisheries port of Pelican at approximately the same time.
 Petersen also testified that pas senger ship revenues were cut by Maritime Union demands for more crew space which he said, had to come cut of deluxe passenger quarters.
 Later, under croSs-examination by Ewers and Stanley Long. Sund- berg said his references to bunch ing" of ships in certain ports were based on his own observation and newspaper vessel movement re- ports. He said he did not know which of the vessels were north bound or southbound, nor amounts of cargo handled.
 Asked by Ewers if he did not feel the Territory adequately protected by Maritime Commission rate re- gulations, Sundborg said:
 The carriers have never been prevented by the Maritime Com mission from getting pretty nearly what they wanted in rates from this trade"
 Steamer Operation
 John E. Richey, Labor Relations Manager for the Alaska Steam ship Company, testified today that labor costs of operating the steam ship Aleutian has increased 159.17 percent since 1889.
 Under questioning by Ira Ewers, counsel for the company, Richey' said the cost rise had been re- flected throughout the fleet. The monthly labor costs on the Aleut- ian were S19,833 92 in 1889, com pared with s51 ,53405 in September 1947.
 Richey said the figures include subsistence allowance and overtime paid the crew for longshoring work.
 The Other Side i Dr. Henry A. Burd, professor of marketing at the University of Washington, told Commission ex- aminers that steamship freight rates are not determining factor on prices in Alaska.
 He said he made a survey last month in Ketchikan, Juneau, An chorage and Fairbanks at the re- quest of the Alaska Steamship Company, one of three steamship firms who are defendants in the hearings.
 People in Alaska told me they believe the reason for the high costs in the Territory are that freight rates are too high and that Alaskan merchants are making too much profit" Burd said.
 T found that few if any mer- chants in Alaska are profiteering and that freight rates are an in- consequential item in determining prices"
 Figures Submitted The professor submitted figures to show that steamship freight costs on food sold in Fairbanks were AT percent higher than on the same items in Ketchikan. The retail prices. however. was only 21 percent higher.
 Burd said total cost of 24 identi- cal food items was less than one percent more in Juneau than in Ketchikan, although it cost 25 percent more to ship them several hundred miles northward to Ju- neau
 He said he found loom condi- tions prevailing through the Terri tory He said there are so many more things stimulating develop ment than retarding it that the effect of freight rates is negligible.
 Tn Alaska you have imitation in the raw" Burd continued There