The Alaska Daily Empire

SHIPPING-BOARD SAVES $600,000 TO NORTHERNERS
M. D. Leehey Tells Interdepartmental Board of Work of Territorial Board
Mauree D. Leehey told the Interdepartmental Commission at Seattle that some local regulatory body or claims on living in Alaska since necessary to regulate ocean shipping and adjust complications arising in water transportation. He stated that the Alaska Territorial Shipping Board had saved the people of Alaska at least $600,000 by preventing the proposed increase in freight rates last fall. He said it developed that such increase was suggested by the Canadian lines in correspondence with the American steamship companies at Seattle. Indeed, an increase was once announced by J. P. Luck, of the Alaska Steamship Company, while the Admiral Line issued a statement, when it withdrew the Senator from the North run that they were losing money, and would have to increase rates. R. M. Demmies, traffic advisor of the Territorial Shipping Board, and his accountants were engaged at that time in assembling traffic data, a summary of which has been published in the hearings of the Senate Committee on Commerce last March. The steamship companies granted another increase in wages in August, and an increase in the price of fuel oil was announced, so they declared it would be necessary to increase rates. A conference with Gov. Riggs was had, and notice was served by Mr. Leehey that any increase in rates would be resisted. The Territorial Board has thus far prevented the proposed increase, although the price of fuel oil is increasing. Mr. Leehey says they are prepared to show that any increase in rates would cripple the Territory and so reduce traffic that the revenues of the lines would be actually diminished by any increase in rates.

Tonnage Figures
The increase proposed last fall would average $1 per ton. The Alaska and Pacific Steamship Company last year handled 295,490 tons of northbound freight and 278,199 tons southbound, a total of 573,689 tons. It is believed that traffic this year will exceed 600,000 tons in view of the increased tonnage of the Alaskan Engineering Commission, so that an average increase of $1 per ton means a saving to the people of Alaska this year of over $600,000. Indeed the saving is greater because it was also proposed to increase passenger rates. Mr. Leehey cited this in his argument for the control of Alaska affairs by a body resident in the Territory, along the lines proposed by Secretary Lane and embodied in the Curry bill, creating a Development Board in Alaska to take over the work now handled by the Federal bureaus in the Territory.

Detailed Statements
Mr. Leehey referred to the traffic data and financial statements published in the hearings before the Senate Commerce Committee last March. He told Dr. Alfred H. Brooks the figures there published give only the summary, but the Territorial Board has several hundred pages of detailed statements, which he invited Dr. Brooks and his committee to examine. The data goes into every phase of the traffic and costs of operation in the Territory. He stated this data has been collected by the Alaska Territorial Shipping Board at a cost of $15,000. It is the only complete Alaska traffic data ever assembled, while the meager data collected by the United States Shipping Board and its investigation of Alaska water traffic in 1918 is reported to have cost the government over $80,000.