The Daily Alaska empire., 1951-05-23

ing rates by from 20eo to B 1f3% and general merchandise by iron i19ee to 24Ts, to cite two very import ant items. During this period you company was not only faced witt rising costs in general but incurred all kinds of additional costs in tht process of driving the Alaska Trans portation Company out of business These circumstances would distor further the facts you list as to youl increased costs.
 Although I do not like the pros pect of increased rates, which fur l ther augment the already high liy- | ing costs, am not unalterably op- posed to increases which can be demonstrated as justified fair and necessary. In order to correct the completely erroneous impression ere ated by your letter as to my position I will list what I do oppose. am opposed to the concept that any and every cost incurred by a carrier is legitimate justification of rates present or proposed, that every incompetence of a carrier should be provided for in rates, and that a tie-in between a carrier and an industry in which the carrier owners have a great interest should be ignored in the face of clear evil dence that an mwarranted rate pre- ference is being paid for by unduly high rates charged to Alaska's resi- dents and other industries.
 I am opposed to the continued existence of discriminatory rates. You have increased the canned sal mon industry rates upward. as you are fond of telling us of late, but the discrimination is still not re- moved. One hundred percent in creases on rate bases which are themselves unjust do not change basic injustice.
 I am opposed to disproportion- ately high rates between Alaska ports, which handicap the Alaska shipper who wishes to send com- modities from one Alaskan port to another, and discriminates against him in favor of a Seattle supplier. I have urged such reform in your rate structure for years.
 I am opposed to the automatic granting of approval by a so-called regulatory agency of the demands of carrier that its tariffs be in- creased without prior investigation of the justice and need for these increases. I would oppose such ar bitrary and unfair practices in any case, but in highly inflationary period such as the present I feel it my duty to do so with even greater vigor. Escrow" is no solution. Rate increases are pyramided in prices and price increases beget wage in creases, and wage increases begei further price increases for goods ano l services. Stabilization policy alone justifies an inquiry into the merits iof rate increase before it is grant ed, not grant followed by an in. quiry into whether the grant wa merited.
 I have petitioned the Fedora Maritime Board for a suspension O the increases which you have re gently filed and I have requested that hearings and investigations b. conducted as you charge. l fail t see. however, that my insistenc upon this leads to your conclusion that by so doing "the basic fact and problems of the trade are ig nored.' Public hearings, technica Investigations by the regulator. body, and judicial reviews are tn only means by which we can get a
 
 these basic facts and problems. They are the only means by whicl the public is given assurance tha due consideration will be given t the effects of the proposed revision upon the interests of shippers an' the general public and that the leve of rates will be established so as t assure the carrier fair, just ans reasonable return for his effort ant investment
 In view of your repeated publi |. statements that the increases ar justified, therefore, I cannot under stand your reluctance to have tn matter aired and your position pos sibly vindicated through such hear ings and investigations.
 Sincerely yours,
 (s) ERNEST GRUENING, Governor