“It’s The Freight!” - Old Saying
Holds True According To Examiner
A hearing examiner of the Fed
eral Maritime Commission this
this week declared that certain
rate increases of Alaska Steamship
Company largely in the Seattle
Alaska Peninsula/Bering Sea trade
are “unjust and unreasonable” and
should be denied.
Reference was made to the fol
lowing three categories: (1) a 10
per cent surcharge on general
cargo carried between ports in the
State of Washington and Bethel,
Platinum and the ports on Alaska
Steam’s Alaska Peninsula and Ber
ing Sea routes (the seasonal area
served by Alaska Steam); (2) a 10
per cent increase on canned fish
carried to ports in Washington and
Oregon from ports along south
eastern and southwestern Alaska,
the Bering Sea and Alaska Penin
sula routes; and (3) a 20 per cent
increase in the rates for boxes,
cans and salt between Washington
ports to the Alaska ports described
in (2).
23 PER CENT RETURN
“Using the allocation methods
and the principles previously set
forth,” the hearing counsel’s re
port stated, “Alaska Steam’s rate
of return for its seasonal opera
tions in 1962 based upon actual re
sults for the first 10 months sup
plemented by November and De
cember 1961 actual results ad
justed for loss of mail revenue, is
30.25 per cent before taxes and
23.37 per cent after taxes.”
The report stated that several
years ago Alaska Steamship Com
pany asked for the general increase
in rates now under study, “yet,
subsequently, it reduced rates for
cargo carried by its scheduled
service. There is only one reason
I
for this pattern of conduct and
that is competition. The net effect
is that the shippers in an area
where the carrier has very little
competition, and who can least af
ford a rate increase, are support
ing Alaska Steam’s scheduled op
erations, permitting it to maintain
its competitive position year round
and even eliminate competition..
DIVIDENDS DECLARED
The counsel’s report stated that,
“Actually, Alaska Steam’s over-all
operational results in 1962 were
not unrewarding by any stretch of
the imagination. It substantially
improved its earnings in the sea
sonal operations over 1961 and add
ing the net earnings of the related
company, Alaska Terminal, its net
corporate profit after payment of
taxes exceeds $200,000. This fig
ure does not include earnings from
other investments, which, accord
ing to its balance sheets, are sub
stantial. The company’s over-all
performance in the past few years
belies any claim that it was in des
perate straits at the beginning of
1962 for . . . it declared dividends
of $430,916 in 1960 and 1961.”
ADAK BID CALL
Invitation on work consisting >f
producing approximately 45,900 cu
bic yards of aggregate for use in
asphaltic concrete. Portland ce
ment concrete and base course at
the Adak Naval Station has been
issued by the Bureau of Yards and
Docks. 1638 West Lawton Way, Se
attle 99, Wash. Bids will be opened
at 2 p.m., April 29. Cost range is
estimated to be $200,000 to $300,
000. *
Mirror Classifiers bring results.
I
FOR ALL YOUR
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or Problems
Phone 486—5150
_KODIAK WELDING WORKS
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for the
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Remember It's
Complete Line the 27th
BLOOMING POTTED PLANTS
Garden Seeds CUT flowers galore:
We have those wonderful Jiffy Pots!
FLOWERS By ELAINE
Phone 486-5225 c/o City Market
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336 E. 5th Ave.
Box 355 • Phone BR 6-0851
Anchorage, Alaska
---
PNA Adds Third
Seattle-Kodiak
Direct Flight
Pacific Northern Airlines, with
the coming of daylight saving time
April 28, is adding several flights
to its schedules between the Pacific
Northwest and Alaska and within
Alaska, as well as adjusting depar
ture times of its 40 jet flights each
week between Seattle-Tacoma and
the Alaskan cities of Ketchikan,
Juneau and Anchorage, according
to Harold A. Olsen, PNA vice pres
ident traffic and sales.
Flight additions include: Constel
lation flights each Tuesday, Thurs
day and Saturday between Seattle
Tacoma and Kodiak, instead of
twice weekly as in the past; a Con
stellation flight each Monday be
tween Seattle-Tacoma and Anchor
age; Constellation flights from An
chorage to Juneau in the afternoon
on Tuesday and Friday, returning
to Anchorage on Wednesday and
Friday mornings; and three DC-3
morning flights per week between
Anchorage and Kenai.
NEW SBA HEAD
Appointment of Robert E. But
ler of Douglas as manager of the
Alaska office of the Small Business
Administration at Anchorage has
been announced by John E. Horne,
SBA Administrator.
Butler, who has been serving as
assistant commissioner of the State
Department of Commerce at Ju*
neau, will succeed William Dunn.
■ —- I
ALASKA TRANSFER & STORARE
NO JOB TOO LARGE OR TOO SMALL
LOCAL MOVING and TRUCKING
Agents For
AREO - MAYFLOWER
MARTIN VAN LINES
ALLIED VAN LINES
We handle packing, crating and shipping from Kodiak to all
Alaskan points, United States, Hawaii and Germany.
Phone 486-2333
Box 605 j
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