The Daily Alaska empire., 1947-04-25
30 VESSELS ARE TO BE
 CHARTERED
Temporary Service for 16 Month-Rdt Increase
 Is Requested

i. WASHINGTON, April 25.-tR- . The Maritime Commission an- nounced today it has approved the 1 forms of contracts with three AL
 askan steamship companies for a i temporary commercial steamship
 service to the Territory. 1 The Commission. did not go into i the details of the contracts but said about 30 ships will be furnish
 ed the companies at nominal char
 ter hire.
 The temporary service is to re-
 place government operated ser f vice begun during the war. It was operated by the War Shipping Ad- | ministration and the Maritime Com mission. When time came two months ago for the government to 1 turn the ships back to the private | companies they announced they would not resume it unless they received an appreciable increase in [ rates.
 OSCidu RdbC SuCTcdSc 1 Gerald D. Morgan, Counsel for i the Alaska Transportation Co., told a reporter the companies have petitioned for new tariffs amount ] ing to an overall rate increase of l 35 percent. He said the application was filed April Is and will become effective in 30 days unless objec- 1 tions from Alaskans cause the Con- mission to suspend them pending a hearing Delegate Bartlett of AL aska said Alaska will ask that the proposed rates be suspended. The new service will operate for about 16 months while Congress studies means of furnishing Alaska with a permanent service. Morgan said the companies hope to put the new service into effect in early June or sooner It will [ replace government operated ser vice begun during the war. It is expected to continue for about l8 months pending action by Congress on the Alaskan shipping problem. Ships Charter Hire Morgan said the contracts pro- vide the Commission will furnish governments ships to the companies at nominal charter hire. The Commission will pay the in- surance on them.
 The operators will agree to fur nish economical and efficient" service but will not start it until the new rates become effective. The operators are to receive ten percent of the profits before taxes and assume all losses. On any pro- fits over that amount the Com mission will deduct the cost of in- surance and it and the company will divide the remainder. 75 per- cent going to the government and 25 percent to the operators. The Alaska Steamship Co.,, will be allotted IT vessels, four or five company owned; the Alaska Trans portation Co. three, two govern ment owned, and the Northland Transportation Co., five, all govern ment owned
 Morgan said it is understood the ] Army will use the commercial ves- sels to transport it's goods to Alas ka.
 The form of the contracts was worked out by a House Subcom- mittee headed by Rep. Jackson tD-Wash) at a time when the steamship companies threatened to discontinue service to Alaska unless they received rate increase.
 Protest Rate Increase
 Delegate Bartlett said Ralph Rivers, Attorney General of the Territory, will file petition in a day or so asking the Commission to suspend the rates pending a hearing.
 T think the proposed increase is entirely out of order" Bartlett said. This is fact especially in view of the substantial government assistance to be furnished the com panies in the way of ships and in- surance. We shall ask the Commis- sion not to allow the increase.