The Daily Alaska empire., 1947-01-31
50L0N5ARE QUERIED
 SHIPPING
Operators Claim They Need Both Subsidy and
 Increase

Wllttilcl lllC itllttoly Ol hidohd shall battle the freight rate in- crease demand upon which the shir companies have made their con- tinued operating of Alaska shipping contingent, was put to the Alaska Legislature today.
 ! A wire from Delegate to Con l gress F.. L. Bartlett was transmit ted hy the Governor to the two chambers of the Legislature this morning for their opinion. Ad- : dressed to the Governor and to the attention of Andrew Nerland. Pres ieent of the Senate, and Oscar Gill,
 Speaker of the House, Delegate Bartletts wire says. in full: This radiogram dictated in pres ence of Gilbert Skinner and Stanley
 Long of Alaska Steamship Com pany and Northland Transportation 1 Company.
 | They Casire to know what my position will be with reference to proposed congressional authoriza- ton giving Maritime Commission ample authority to charter gov ernment ships to Alaska operators
 and to provide hull insurance without charge to operators, thus providing indirect subsidy. on in- terim basis not exceeding IS months. so there will be sufficient exper- fence 10 demonstrate what form. if 1 any. permanent Federal assistance should be given in Alaska maritime ! situation.
 ! These operators have informed
 me there will be no point in hav-
 ing Congress act, If there is terri
 torial opposition to proposed rate increases which would have effect
 o of suspending those increases, be- cause under those circumstances op- orators would be forced to withdraw from service Have discussed with them possibility of arriving at some compromise figure less than overall 35 percent increases they suggest, over and above existing rates, but they have rejected such proposals. contending that while they have no sure Knowledge their figures are correct. because of irn- ponderables having to do with pos sible military cargo, labor practices and other factors, the figures do represent to the best of their belief minimum increases necessary for going operation.
 They have suggested. if labor / situation improves to pre-war standard they could and would de- crease tariffs on own motion, with out urging from Maritime Cornmis- sion; and they have assigned to labor practices principal cause for . at least half propoeed increases. 1 Operators say they will not, under any circumstances, resume private operation on March lst, or when ever government operation suspends, ; if Territory takes case to Maritime Commission and is successful in securing rate suspension.
 Skinner informs me. rate in /. creases on order of Is percent above existing rates would be possible if Territory willing to do without passenger service. Under interim
 operation plan, operators are limit
 d to profit of six percent on own investment, with recapture clause . providing extra profit. if any. re- vert. Understand there is yet no 1 definite conclusion as to what per-
 centage reversion would go to gov
 ernment and what percentage to operators.
 Since operators state positively suspension of service only alterna- l five to rate increases, it would be
 idle to press for congressional legis- lation If there is no general agree
 ment on interim plan
 Under these circumstances, and although I have previously indicat- led in press statement my view that
 rate increases on order proposed
 would be crippling to territorial
 economy. I now feel as legislative
 representative of the Territory, 1t is essential for me to have, at earl
 jest possible moment. reasoned con- clusions of legislative and executive branches of Territorial government as to-
 First. What I should do with
 respect to proposed legislation? and. Second. and more important.
 What position of Territory will be regarding proposed increases? Suggest necessity for prompt
 consideration this vital problem
 and would appreciate your advising
 fContinued on iage Eight