The Wrangell sentinel., 1948-06-11
PRESENT STEAMSHIP PLAN
 MAY EXPIRE JUNE 90

WASHINGTON - The tempor- ary plan for operating steamship service Go Alaska may be allowed ] to expire June 30.
 The law enacted a year ago al-I lowed the Maritime Commission toi charter Goyernment5owned ship to ship operators at a dollar a year with the Government paying theI insurance. Rep. Weichel (R-ohio), chair- man of the House Merchant MarineI | Committee, told a reporter this week that extension of the tenn porary law is not needed His. committee would have to approve an extension. He said the Commission has un-I til next February 28 authority to institute general agency operationl of steamships to Alaska as was. done during the war or can charterl ships to the Alaska operator at s 12 per cent of their vaule under the ship sales law.
 Temporary Plan
 l At the time the temporary plan l for Alaskan operations was adopted the authority of the Commission to institute general agency operauonI of charter vessels had expired, Weichel said Since that time the authority was renewed by Congress until the end of next February.
 General agency operation is that in which the Commission desig-I mates certain operators to use gov ernment-owned ships, pays them the cost of operation and takes the profits for the government. ei Weichel's statement was madel after the Senate Commerce Com-l mittee had approved extension of the temporary Alaska law until next February 28.
 The Iegisatioln is the same asI that approved by the House Mer- chant Marine subcommittee butt not yet approved by the full House Committee.
 Contention Of Operators
 Ship operators have cOntended that if they charter ships from the government it will cause an in! crease in rates to the Territory tol provide for the additional cost of chartering as compared to the cost under operation of the dollar-a- year ships.
 Weichel said one criticism of thel temporary Alaska service plan is I the form of the contract the Mari time Commission made with the three steamship companies.
 The Alaska Steamship Company. the Alaska Transportation Com, pany and the Northland Transport ation Company were given exclu- sive contracts to serve the Terri tory.
 "The complaint has been, Weichel said, that everybody did not get an even chance to engage in the Service. Under the extension of the Commissions authority any one who wants to engage in the Alaska service can charter ships for the purpose"
 Tollefson Active
 Rep. Tollefson (R-Wash), whoi introduced the extension bill in I the House, told a reporter he will continue to try to get it approved by Congress.
 He said the legislation was en-l acted to provide as cheap freight rates as possible for the Territory and added "the need is just asl great now as it was year ago."
 Tollefson explained that when the government returned to theI private operators the ships used during the war in the Alaska trade, the operators said an 85 per cent freight rate increase would be rs quired
 He said that because of this, the plan to charter government ships to the operators at dollar year was worked out and enacted into law so the freight rate increased only 36 per cent. Alaska contends that is too high, he added.
 Tollefson said the government lost $4,00O,000 in operating the service the last year before tn general agency operation plan was ended.
 "The temporary plan is not to subsidize ship operators" he said,