PAIMER, ALASKA
Dorothy M. Bell, Editor
Published every Friday at Palmer, Alaska for the Matonuska. Valley farmers®
Cooperating .Association for the purpose of giving news of the\Agsociations, Work, '
Problems', qnd Accomp; is'hnents. > ‘ .
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SUBSCRIPTION BY MAIL $1.75 , BOX $1.00-. SINGLE'COPY 10d
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ARE WE TO HAVE STILL HIGHER FR&IOTIbRATES1?- :.
The cost of living has-always been high in comparison to living on the West Coast or
in the States. This is only natural as the greatest bulk of our food and materials
come from the States and the freighting cbst added to the cost of the article'makes
it much highbr. In the case'of bulky articles, sometimes this added cost makes the
item practically prohibitive. The greater part of the freight bill," however, is'on
the Alaska Railroad and not on the water. Nevertheless, any added cost to shipping
charges will only make the freighting bill that much more unbearable.
It is hard to understand just what.can be gained by this movo to raise rates. If
freight becomes too excessive people will be -forced to go without many things they
have enjoyed in the past. The amount of shipping will be reduced and in the long run
the income derived By the shipping interests might even be less than if the'rates
were lower. High freight rates will most cortcinly discourage settlement in Alaska
and may even ca/.*jc an exodus of those already here.
higher rates wore placed on items to protect .industries in Alaska from .competition’,
- might see some excuse for this move. There is no indication that such is the case.
Governor Gruening has this to say—
I Dpsire to state that our Territory night just as well fold up as a prospectively '
thriving and developing part of the United States if one hundredpercent passenger pnd
ireight increases arc imposed upon us. Indeed any increases whatsoever would bo
seriously crippling'.' ..
"The steamship rates long have been and arc already excessive and higher than for
any other equivalent service;- They should bo drastically reduced. My recollection'is
that the annual freight and passenger bill of Alaska is about eight million dollars.
"The proposal to double this, to add another eight million dollars which would be
borne largely b y the Alaska consumers, would drive Phc cost of living to such
astronomical heights that it would be extremely difficult for people to maintain them
selves here.
"It would cause such an increase in prices that corresponding increases in wages and
salaries would bo^instcftly demanded.and failure to secure then would cause a general
exodus from tho Territory. , ' ~ . «•
" It would cause a groat increase, in the cost of operation of all government ageneior
^loska whoso budgets are prepared a year in advance and which could scarocely >
accomodate themselves to so drastic a change without.corresponding action'by tho
Bureau of the budget and tho Congress—in itself a tremendous undertaking.
In past years I have proposed to the Territorial Legislature certain changes in pur
\ system to raise more revenue.by trying to reach the considerable number of
sincssos, groups and individuals now virtually untaxod by the Territory of which
no Steamship companies incidentally arc outstanding examples "since thcy'pay no
lorritorial tax-' whatsoever. The result of -such tax measures, if Adopted,/Would* hate
neon to supply the Territory with funds for roads, airports, schools, hospitalsraid
or pre loots'and iofyicos generally beneficial to Ain ska which ln~ turn nould ho *
juiit up its economy. 3ut no taxes over proposed vrcu.ll have added up to wijpth.i-.nf;
••rcr^chi.r g co staqgcxitng a total 'aS this prospective ..Levy wh.icn Would b© han^tld’*'
thru: Seattle Steamship companies, and none of. the benofitr of which would b-; t.-.ii
In :uo Territory. Every cent of thfs increase—amounting annQaliy co t hreu■ M:.V;s /
J” -:rricorial Budget—will go to absentee business enterprises and nonrcsidi nc
.15oyooB. It is the stockholders of these companies ydyaSwill receive didldorlV and ^
chair workers who will rccoive more wages,... From thojir standpoint this is uad.ouotC'LL?
fjsirablo but the entire .staggering burden of this will bp borne by the'wbrKing
P ;°plo, the consuming 'public of Alaska and Alaska business of all kinds.
^ont. on the next page.