The Daily Alaska empire Newspaper, April 3, 1935, Page 7

TRAFFIC DE PIER TWO SEATTLE THE DAILY ALASKA EMPIRE TRAFFIC DEPARTMENT PIER TWO SEATTLE March 22, 1935 Mr. A. W. Henning, Clerk, Dear 8ir: This will acknowledge yours of March 9ih. addressed to our Company at Juneau, wherein you advised that at the last me.iing of the City Council a resolution was passed protesting the ac of the steamship campanies serving Juneau in un- loading on the shippers the whole burden of increased costs arising out of the settlement with the longshoremen on wage demands at Juneau and &t Seaitle. You also make specific reference to the 75c a ton handling charge at Juneau, the §5c hangling chargz on Rier ‘Two and the contemplated increase in {reight rates. : We -appreciate the opportunity you nave given us, to raak> @ iwll and frank statement which can be made public, to ‘justify the actions we have taken. Ao dcubt very much if the public in general in Alaska tizely .conversant with the financial burdems all $ranspor- a companies have had to shoulder since the labor unrest strike periods beginning in May 1934. Everyone knaws there was a Few peeple rcalize that the Alaska service was maintained after two interr st summer because the Alaska eperaic I zed i t obligation was to the Territory tne T that steamer sexvice to the varieus indus! 8 wes a vital necessity if Alaska and its Andustries were to continuc during 1834. Agreements were signed with the longshore and other unions last summer which cnagied the SL2amsaip companies serving- Alaskp to resume. Our; gperations last summ st many. thousands of dollars i 1 exp: iture. - The wage increases obtained by a r item of increased cost. ‘The opera- thexefrem plus the fact that for quite a pgriod .we had to call at Vancouver, B. C. for cur fuel oil, all -resulted “in such a heavy finencial 1oss to us that the rates in etfect Mst summer did not Legin to cover eur cpcrating expenses. Yet we. carried aled our ships under almost insurmountable. obsta- cles and diificuitics. ated cur ships when other steam- ship ccmpanics on the Pacific Coasw tied their fleets yp and discharged their help. erhaps the logical thing for us to have done would have bcan to have made some substantial rate in- creases last summy We reirained from such an action; how- we know we were actually losing money, we aclysion, as above stated, that owr first was to the Territory of Alaska, the people of Ala 1, apd we ran our ships and ga tes last June or July 1d have standpoi. but it wowld also have added to the general confusion and turmoil, as the actual extent of our increasing evpenses was unknown, so we said nothing hut rather “sawed wood” and did the best we could for the mining and fishing and the other major -seasonable industries of the Territory. We want to make phis point perfectly clear to you, namely, that our operating costs began to soar in June 1034, Qur tariff rate increases were effective March 5th, 1935, and our handling charges on Pier Two and our ship's tackle receipt and .delivery in Alaska were effective in February 1935. We did not, however, leap at the important quesiion of increasing ieve- nue, but rather endeavored to studiously devise a new rate scale which would be ccmparable with our increased ccst of cpergi- tfon. We assure you .the matier bas been given Jlong and serious thought, and we are not suve yel that the increases we have asked for are sufficient to offset our still increasing east of operation. We will lain further On January 18t advised all of owr agenis in Alaska that at an e 3 acted to announce that we were going to d ntin practice of trucking freight he- tween the ship's slings rigus warehouses. This plan was conceived about last Octeber when we were trying to devise ways and means of lancing our revenues with cur ever in- creasing expenses. As staled in our letter of January 18th to our representatives, we expected to advise them all we @ geing to 'soon establish the practice of ship's tackle receipt and delivery. Our action in actually establishing it as scon as we did was hastened by the City Council of Juneau offering to accept freight at the Juncau City Dock, paying the longshore- men the high wages they were demanding and passing the handling charge between ship’s tackle and warehouse on to the consignee. After the Juneau City Council made this decision, there was no alternative for the indcpendent comumercial docks at Juneau but to follow suit. Hence the rather early adcption of the ship’s tackle plan and the resulting charges to con- service. To have been lagical from qu We would further like to call your attention to the fact that trucking freight between ship’s slings to a piace of rest in the warehouse if not in reality a - transportation function, but rather a dock or terminal datail. A transportation company as a rule completes its obligations and contracts with shippers when it transports freight from one locality to another. This should be especially true in a territory like Alaska where it is not uncommon for one steamer on one voyage to call at as many as forty-five or fifty different docks, with an equal num- ber of different systems of handling freight between ship's slings and warehouses. The major transportation companies serving Alaska have absorbed the cost of trucking Letween ship's slings and the warehouse at one specified dock in each main town, such specified dock usually being the wharf where the general merchandise, mail, baggage, express and passengers are handled. At all other docks in the regular towns and at all other docks at irregular ports of call, it has not been the practice to absorb trucking charges between ship’s slings and warehouse or place of rest on dock. For example, we did not absorb trucking charges at the Juneau Lumber Mills. the Alaska Juneau Gold Mining Company or the Juneau Cald Storage Dock. We do not absorb the trucking charge at canneries, salteries, mine or other industrial docks. Therefore, to be consistent we should not absorb the trucking charges at the general merchandise dock. In establishing the recently inaug- urated practice of ship's tackle receipt and delivery at all docks in Alaska, we have placed all docks, all industries and all con- signees on an equal basis. We have drawn a definite line of distinction between actually transporting freight on our steamers -and handling freight on the dock at destination. These are two separate and distinet transections, and we believe it is xight that they should be. The 55c per ton handling charge was made .effective Feb- ruary 6th last, and is being assessed to in a measure offset our increased cost of handling freight in Seattle. To explain further, in addition to the high longshore and checking rates we are now paying, we are also confronted with less efficiency than heretofore. Our costs per ton in loading freight have increased to the point where the additional revenue accruing to us through the assessing of a handling charge over Pier Two does not offset our .increased costs of handling freight because of the higher wage scale, lack of our former efficiency, resulting in a greater number cf haurs straight .and overtime being consumed in loading the ships. The handling charge now being assessed is.an attempt to cover a definite “concrete addi- tional handling expense to us. Also.for some time it has been the practice of Alaska merchants to- send their mail orders expecting their goods to be shipped on the same steamer re- turning. This practice has resulted in shippers being forced to make deliveries the afternoon and night before sailing, re- sulting in steamers being loaded on overtime pay. In the above we have endeavored to explain the reasons for the handling charge at Seattle and the ship's tackle receipt and delivery program in Alaska. We will now proceed further We knew a long while ago that we had to raise our freight and passenger rates. In planning the tariff revisions and ar- riving at the rates now in effect, we thought we hag, fairly accurately anticipated the extent of the wage increases we would have to pay. On March 9th the Alaska operators com- pleted negotiations with the various unions, agreements con- taining new wage scales, new working conditions and new over- time conditions were signed with the Sailors Union, Marine Cooks and Stewards Unions, Engineers Union and the Firemen, Oilers, Water Tenders and Wipers Unions. These new labor agreements, signed March 9th in an attempt to prevent further strikes and further interruptions of our service, were so much higher than we had anticipated (and all these wage increases , and all overtime increases were retroactive to June 1934) that we are now convinced aur moderate rate inoreases will not balance with our advanced operating costs, To give you an idea of what the retroactive fe re of the wage increases has meant to the Alaska Stean p Company alpne, permit us 0 say that the back pay we gave the longshoremen and checkers last swnmer and the back pay to the personnel of the abave menticned unions aggregate in excess of ome hundred fifteen thousapd dollars. Cur purpose in this lengthy explanation is to acquaint you with tne fact that our rates were increased from necessity in an effort to have our vevenue balance with our expanses. Rates were NOT incr d because WE THOUGHT we saw an opportuniiy of obtaining more revenue. They had to be increased if we were tc continue to operate. We are attaching hereto a brief recapitaulation of various commadity rates in effect between Seattle and Ketchikan, Juneau and Cor- dova from 1929 up to the present time, from which you will note that the present rates to Junesu are fairly comparabie with the rates in effect in 1929, or prior to the depression. You must also bear in mind in study: this tabulation that our operating costs today are far in excess of any operating costs we have ever had to meet. In addition to the tariff increases at regular parts, which were March 5th, we also want to advise you that &il rates, both freight and pas- senger, to the canneries and salteries have been increased. For instance, canned salmon, empty cans and gen merchandise have been increased a dollar a ton. Rates on b led herring, fish meal and fish cil have been increased on an average of better than a dollar ton. First-class pa: er rates and steer age rates to the canneries have been ir ased. We peint thi; out so that the people of Juneau will not have the i they were discriminated against. Practicaly all routes to all industries have been increased In your letter of March 9th you p igorously over various freight and handling increase have endeava! to justify our action in explaining why 25 were necessary. We are also going to take the opportunity in this letter of explaining the transpertation problems; any transpos- tation .company serving Alaska has to meeil in any strict or territory record of the transport panies serving such r territory. business to and. from Alaska had declined in 1929, and 1932. In fact the falling off in business was so so noticetable to both the Alaska Steamship Cer Pacitic Steamship Company that there was not busi enough for both cempanies to continue operation. The Pacific Stea ship Company withdrew, and we hoped in tb s0 doing ther would be encugh business for the Alaska Steamship Company to continuye giving the kind and class of servic had b2en giving. Many people thought that our st ) after the withdrawal of the Pacific Steamship Company would be to increase rates, but on -the assumption that a greater volume of business would engble us to gross more revenue at a lower rate than a smaller amount of business at higher rates, we made our rate reductions, both freight and »:ssenger, in 1933. Few people realize that- Alaska offers a transportation prob= lem perhaps entirely different from any other water transpor- tation . trade route in the werld. We know of no other terri- tory or district that offers the sea: ble problem that Alaska gives to the transportation companies serving the Territory In the spring of the ysar the traffic is northkound only, a ‘steamers come hame absolutely empty as far as freight is con- cerned and very few southbound passengers. At the height of the salmon producing season in Alaska, if fish are plentiful and production is big, we have a fairly good opportunity of handling loads both nerth and southbound for a period of about four weeks. In the late summer and the early fall our ships as a rule are very light nonthbound but can expect geod loads south- bound.--In the winter time, or.say from the latter part of September until the first of the following March, business both freight and passenger is light in both directions. In othe: words, we celdom have a load of freight and passengers L. north and southbound. The transportation business from the very nature of the territory we ace serving always seems (o be .out of balance. This is an influence in setting transporta- ticn rates to and from the Territory of Alaska. If we could enjoy fairly good leads in both directions for say e.ght or nine months out of the year, there is no question but what rates could be lower. To further emphasize the seasonableness of ihe transportation business to and from Alaska, we might add that we have eighteen ships in our fleet, four of which were operated during the five dead winter months, and four- teen of them were tied up in our plant in West Seattle. Our entire flest of eighteen ships is essential in handling the busi- ness of the Territory at its peak season, which only lasts be- tween two and three months out of every year. To further add to the perplexing problems of service and rates, both of which are contingent upon volume, we are con- stantly affected by the activities of the privately owned can- nery ships, the government owned and operated vessels and the small gas boats. The privately owned cannery ships handle business which is needed by the transportation companies giving regular service to. the Territory the year round, but it is doubtful if the people of Alaska derive any particular benefit from their operations. The government through the Navy Departent, the Department of the Interior and other branches deprives the regular lines of considerable business. . The small gas boats, handling fifty to one hundred tons of cargo per trip, also make inroads on the regular lines giving service the year round. 1 These are some of the problems we have to face and are in addition to the main transportation difficulty of extreme seasonableness. We think the people of Alaska should help us in combating these evils, which if unchecked have a tendency to cut down the class and kind ol service now haing given by the regular lines to the regular parts of call. If the people of - Alaska want steamer service from ships that are now serving the Territory on regular and frequemt, schedules, then those ships should be patronized. If .the ;people in the Territory desire to revert to gas boat and ste schooner service with no adequate provisions for handling passengers, a lower rate ,scale could probably obtain. If .we | to run steamars like the ALEUTIAN, YUKON, ALASKA ;fi‘ NORTH- WESTERN, with what we consider exceptionally fine passenger ,accommpdations, then -we should secute adequate rates to oper- abe such ships. N ALSSMA gnd N Fhe: entire transportation problem of Alaska s one that is-of -mutual interest and concern to, the, ~of, the Terri- tory of Alaska to enable the operators of the steamship com- panies to give regular, dependable, scheduled service to the ‘Territory. You undoubtedly understand that the present day problem of labor, working conditions and higher wages is nationwide. Labor is demanding and securing in many instances, wages in excess of the high wage peaks during the war. The trans- pogtation companies serving Alaska have beem wvery hard hit financially in meeting these demands ,and we can find but one answer, pamely, an increase in both freight and passenger revenue to balance the increased costs of ‘at] . All sup- plies, equipment, maintenance and foogstuffs necessary in the operations of the steamers have advanced materially, The merchants of Alaska have no doubt found this true in their purchases of merchandise. § i In conclusion, we desire to emphasize the fact that our ‘handling charge in Seattle, the ship's tackle delivery program in Alaska and the tariff increases on freight and pasengers were all forced on us by reason of the general increases in our operating expenses. ‘We hope the people of Jumean in par- ticular, .and all of the people in the Territary in geperal, under- stand this, We want you all to know and realize that we can- not continue our operations without your cooperation and paironage, and assure you that our present, scale, both freight and passenger, is entirely justifiable. in ecomparisan with our present operating costs. -Thanking you for having given us this opportunity to ex- plain ourselves, and hoping this Jletter is clear ‘and undarstand- able, and soliciting your aid and copperation in helping us to continpe furnishing Alaska with a transportation gervice suit- able and adequate to ineet all the expectations and reguire- ments of the residents of the Territory. ; Yours very truly, . L. W. BAKER, Traffic Manager. When you think Alaska—Think Alaska Steamship Company . WEDNESDAY, APRIL 3, p | Chairman, 1935. f date, the Secretary has appointed | | GUMMITTEE this Commitiee whose = functions | will be to advise and counsel with| him on broad problems of research, NAMED BY RuPER sgientific developments, catching, | | canning, and inarketing of fish,| the stabilizing of the industry, the TG AID N TR general welfare of fishermen, and the nutritional aspects of fish as| Time Barometer Temp. Humidity Wind Veloclty = Weather & ;:\ food produet. 4 pam. yest'y 3018 48 4“ s 3 cldy Four Al : | “The fisning mndustry, in com-| 4 am. today 3015 94 3 s 2 Clear our Alaska, 'West' Coast!mon with other prapehes of busi-| Noon' today 3016 50 oe T Pt. Cldy MCH /\ppoinled by SCC— |ness, has been hard hit' during re- RADIO REPORTS 8 cent years. Falling prices for its i st TS retary of Commerce products, which have not shown| YESTERDAY TODAY —— |nearly as great a percentage of a Highest 4pm. | Lowest4a.m. 4am. Precip. 4a.& ,return to the normal as have agri- ‘Station temp. temp. temp. temp. velocity 24hrs, Weatler { ’culLurul products, have placed many| Anchorage .41 27 — 0 R { Beoth Company, Los Angeles, Cali- fishermen in dire ciroumstances.| Barrow 22 16 4 Cldy fornia | The industry reached @ peak in, Nome 30 30 32 12 Snow G. P. Maggioni; L. P. Maggioni 1920 <when 123,000 fishermen ob-| Bethel 44 30 10 Clear & Company, Savannah, Georgia. inu!ned a catech of 8567,000,0000 Fairbanks 42 18 4 Clear | A Willford, Waterloo, Iowaj ' Pounds at a rveturn'of $123,054,000.] Dawson . 40 10 4 Clear ponservationist; President of Towa ! The low level was reached in 1932| St. Paul 38 30 10 Cldy District, Izaak Walton League of | When 116,000 'fishermen obtained | Ditch Harbor 40 40 16 Rain Clear America, Inc. 2,614,000,000 pounds and received| Kodiak .44 34 }‘:OA G. Dale, conservationist; Sec-|$54:764,000. '| ‘Cordova " 34 Clear | Clear { U. 8. DEPARTMENT OF AGRICULTURE, WEATHER BUREAU The W eather v (By the U. §. Weather Bureau) Forceast for sunesu and vASIARY, Heglriring at 4 pam., April 8: Fair tonight and Thursday; light variable winds, mostly easterly. LOCAL DATA (Continued irom Page One.) cc8o88080 | ooa retary, Salt Water Anglers of | “Many other persons are employ-| Juneau 49 32 America, New York City. ed ashore in handling, preparing,| Sitka 417 35 s | Ex-qtics’ anbeEs and marketing fish and fish pro-| Ketehikan 50 8 Clear | The Secretary also announced duots and these, too, are in the| Prince Rupert 8 R Clear that he -ad invited the following|same distressed circumstances, as| Edmonton o 2 Cldy {to serve as ex-officio members of{are the fishermen. Many trades,| Seattle 52 36 Clear lthe Fishery Advisory Committee:|@lso, are affected by the fishing| Portland . o e v Senator Royal S. Copeland,|industries, such as the manufac-| San Francisco 62 56 56 Rain Senate Finance Com-|tufers of equipment, boxes, barrels, | "~ WEATHER CONDITIONS AT 8 A. M. paper cartons, etc. It is estimated| SoRuyler! oNg hat in the peak year, 1929, the Anchorage, clear, temperature 36; Nenana, clear, 26; Fairbanks, clear, 20; Hot Springs, clear, 28; Tanana, .clear, 28; Ruby, cloudy, ishing industry represented a bil- jon dollars in the economic struc- 34; Nulato, cloudy, 32; Kaltag .cloudy, 34; Unalakleet, cloudy, 32; Tlat, partly cloudy, 44. ture of the nation, employed 250,- many raBans Sosccocsoe 3 | mittee | Congres:man | Bland, Chairman, House Commit- |tee on Merchant Marine, Fisheries, and Radio. | Congressman Ralph O. Brewsler.lm men directly and as |member of House Compgittee on|more indirectly. | WEATHER S YNOPSIS Merchant Marine, Fisheries and Atiention to Food Values | the ];iheeld h§f°$,§i'r'fn'x’;?s§$in?smb"m l;:s hflfi“efmb“firléfifife °§§' Radic “ it & C ¢ 2 3 ’ “ ’;)“ 5 ¥ $ IP gRidon o sHe €CONOMIC |- 110 high over Alaska ahd the Ma:Kenzie River Valley and low over elezate Anthony J. Dimond of|phases of this situation, the Fish-| o nione of the North Pacific Ocein. This general pressure distribu. Alaska ery Advisory Committee is being ¥ . 2} ; ) ¥ iRk . 7| tion has been attended by snow over the' Seward Peninsula and by v Bell, Commissioner offasked to give particular attention, .. weather over the eastern ani Southern portions of Alaska. o the food values of fish as a| " Ghitribution to the health of the| . M eather peevaliod Ahrod ghput.(fhe: Tereiigny: this moriing. antire nation. Seafoods are rich! sources of minerals because ever| ince there have been land and ceau of Fisheries, Department of cmmerce. | In announcinz the steps that |are to be taken to restore a pros- perous situation within the fishing | industry, Secreta Roper said: |water the minerals of the land ! Adyicc and Counsel have been steadily carried down “Congressional enactments charge|to the sea through the streams. Of {the Secret of Commerce,{.he six most important minerals through the Bureau of Fisheries,| n the diet of man, most fish or | in }wnh the development, promotion, | eafcods have five and some snx‘!me Amerigan. diet, ‘e Deu"‘me.m‘vulemepx‘co:!teys e::e;x:lcoh?slz;‘;'er?sii fl:‘: |and rezulation of the fisheries of! The par capita ccnsumption of hshl"[ Comumerce announcement said. | ., 14 have been the choice of the |the United States and its territor-| n the United States is lower than| s (B s BT }poople and that nothing is to be ies and dependencies. In order to|‘hat of any other important coun-| SHOP IN JUNEAU! gained in splitting @ majority. vote |more effectively fulfill this man-] ry, thus creating a significant op-| " | against a minovity. # o ok ;i 3 C. H. MAC SPADDEN, 1 kT JUNEAU FROCK : Daily Cross-word Puzzle | % CPRED DiSHA SHOPPE ALFRED DISHAW, Solution of Yesterday’s Puzzle portunity for a greater use of fish as food." Current studies made by the Bu- \1eau of Fisheries reveal that in the 0 present upward trend of food prlc-‘ tendour " and appreciation shown by the voters of Juneau for es, fish and seafoods have advanc-| ed less than many other items of | the. wonderfiligipport accorded us THANKS A LOT We, the undersigned candidates, on the Citizens Ticket wish to ex- “ExGusive it ndt igenkteer | |20V _MIKE MONAGLE. Coats, Dresses, Lingerie, | NEW LOW LIQUOR PRICES Hoslery and Hats {nre still in effect at THE TOTEM | GROCERY, —adv. ACROSS L. Epoch 4 Greek school of philoso- phy founded Lens of an optical In« strument for viewing the Image - - by Zeno . Avalanche 1 9. Small ex- 7 Light brown ; plosion v Not at home 12. Inlet of the H . Anger sea 2 Goods carried 13. Femlinine In o vessel name 14/ Philippine savage 16. American indian 16. Bury 17. Softly 18, Lukewarm 20. Recreational contests 22. Patron saint of lawyers 24. Attitud 2. Vietim 1. Garden, m- plement 20. Asterisk 82, ln““lent of | 8. vnug."‘ e 8. Where play starts fn ol ber tree 36. Instruments 48. Wear away pruning 52, Deplction of L 3 the by . 9. Pronoun B HGo). & L Animals’ teet Climbing vine Equine animal . Loud cry . English colns 25. Engage In sport Act wildly Ai?: comb. . Cereal grass . Duteh city . Player at chil- dren's games . Animation: slang Woolly surface of cloth Meéxican rub- 2/ | Any one can ce a fine lustrous j furnit % il 1 o T S g B i mel gt T P T T daEN/d4n dEdd ANENZ JNE T 4 NN dNE WN ol A | WD ddd FrT AT il RN SWP Housé Palnt FLAT-TONE Lasts ) cov costs Washable interi lqun-h‘-i*. ers more, !:. #I erior_flat fimish ‘e Thomas Hardware Co. PHONE 555 - NEW SHIPMENT HERE! BACARDI RUM CALIFORNIA GROCERY Bhope 478 L 1. " Rrompt Delivery WANT TO Liquor’ Department REDUCE . . Prepare Now for Easter! REALISTIC OIL WAVE NONE BETTER! RUTH CARLSON Pigg Apartments INCLUDI; PEERLESS bran and wholewheat breads in your menus. They’re carefully baked to give you all the vitamins you need to main- tain your health, yet they're free of weight- building qualities. Eat these breads every meal .. you'll enjoy them. e [ S———— i ® : ] \PEERLESS BAKERY bt S 2 oMl Breads At PHONE 532