ALASKA SHIP
PLAN LACKS
IN JUDGMENT
Some people in Alaska are headed
for an awful failure in their proposed
$10,000,000 ship corporation. For the
purpose of pointing out the weakness
in their argument and to prevent this
most serious error from reacting
upon them a few years hence, thereby
causing deep regret, the following
cold statement has been carefully
compiled.
In the first place, those who are
backing the Alaska government
steamship line are very wrongfully
taking the total of Alaska’s commerce
as a working hypothesis. We will for
the moment start with the same
basis, but in this argument the value
of gold is omitted, as that does not
mean any steamship tonnage. The
figures will have to be given as valua
tions rather than weights, owing to
the fact that the United States cus
toms department gets its totals out in
valuations.
The calendar year 1918 was an ab
normal one for Alaska, chiefly on ac
count of supplies sent to canneries.
The principal transportation lines
handling the grand total shipment
were the following: Alaska Barge Co.,
Alaska Packers, Alaska Steamship
Co., Humboldt Steamship Co., Booth
Fisheries Co., Libby, McNeill &
Libby, Canadian Pacific, Grand Trunk
• Pacific, Pacific Steamship Co., Pacific
American Fisheries, United States
chartered ships and independent hali
but schooners, whalers and cannery
tenders. Therefore, the new Alaska
government steamships must at once
prepare to compete with all these dif
ferent companies, and as each com
pany absolutely controls a certain
percentage of the north and south ton
nage, it is beyond the realm of rea
son to imagine for one moment that
the Alaska Packers are going to di
vide their business with a competitor
whose announced intention is to prac
tically annihilate the transportation
companies.
The next thing to be carefully con
sidered are the ports in the United
States to and from which the Alaska
government boats will operate. If
they are going to compete they must
operate from Tacoma, Seattle, Bel
lingham, Portland and San Francisco.
At San Francisco, for example, they
will have to compete with the sailing
vessels of the Alaska Packers Asso
ciation, at Bellingham they must meet
and cut under the rates of the Pacific
American Fisheries, at Portland they
must reduce the rates under the very
low charges made, last year for haul
ing large cargoes of lumber and mis
cellaneous supplies from that port
north, while at Seattle and Tacoma,
which handled the bulk of the busi
ness, they must meet in competition
two regular organized steamship com
panies.
-r,. n.. _ _ rrrnod trttfl'
r maiij , *y v w o
of the commerce of Alaska, leaving
out the value of gold. Very briefly
this total is represnted in the equip
ment and supplies sent north and
principally the copper and fish senl
south. The grand total valuation foi
the calendar year 1918, according tc
United States figures, was $115,398,
837, but this rather attractive total
dwindles to $27,825,730 when all oi
the commodities which are handled
under contract by different operating
companies are deducted. In, othei
words, this small total of $27,$25[73£
is the grand total valuation pf th«
1918 competitive commerce, mecinipj
all that is left to be handled by ‘com
peting steamships after the Alaska
Packers and the other fishing inter
ests, the copper companies and others
which have already made their trans
portation arrangements have de
ducted their totals handled last year
from the grand total.
Further, segregating these figures
we find that In the valup of supplies
and equipment sent north for th<
calendar year 1918 the total was $40,
412,258, of Which Puget Souqd port!
handled <27,715,202, California and
Oregon ports $12,697,066. Of the
grand! total, the value of supplies and
equipment sent north by operators li
their own or controlled boats amount
ed to $21,360,000. We, therefore, ar
rive at the conclusion that if the nes
Alaska line is to go In the open ma*
ket and solicit freight, there most b«
deducted the value of shipment nortl
of fishery supplies and other con
trolled freight, making a total of $34,
067,051. This being deducted from the
grand total valuation of all supplies
sent from all ports, to Alaska Iasi
year, leaves the insigniflefint sum ol
$6,355,202 open to selleltatlon.
So on northbound shipments w<
have this small total of $6,356,202 it
an abnormal year, and for which some
people have proposed a sum of $10,
000,000 to create a steamship line. As
the tonnage figures are not given it
is impossible to say how much ton
nage is represented in that valuation
of supplies sent north, tout assuming
that the very small and conservative
estimate of half a million per ship’s
cargo, and twelve northbound trips
would take all of the supplies of the
competitive class.
Can any steamship operator imag
ine a group of men talking of creat
ing a $10,000,000 steamship line, when
a few trips of one large steamship
could handle all the competitive ton
nage north as moved last year. And
1919 is decreasing under 1918 totals.
Then let us take the value of ship
ments sent from Alaska to the United
States ports. The grand total of the
products of Alaska, as shown by gov
ernment figures', amounted to $74,
986,579. First, must be deducted from
that total the value of fish handled
by various cannery boats and halibut
schooner and whaling vessels amount
ing to $35,360,000. Then must be de
ducted the value of the copper, $18,
156,051. This leaves a balance of
$21,470,528, which the new line can
regard as competitive southbound ton
nage, and it must go into the open
market and fight with existing steam
ship lines, schooners, barges, etc., to
get its proportion of the business.
In the above, we have assumed for
sake of argument, that of the com
petitive tonage, the new government
will establish rates to Southeastern,
Southwestern and far Western Alaska
to Puget Sound, Columbia river and
San Francisco. But, further, assum
ing that of the competitive balance, it
should succeed in getting all of the
business, even then the total would
not be great enough to provide busi
ness for this $10,000,000 corporation
for even two of the summer months,
It has been shown that the balance
for competitive business amounted to
the valuation of $27,825,730, and of
this there is every reason to believe
that the two regular steamship com
panies operating would assuredly
with their frequent sailing and large
tonnage, each be able to control a
paltry 25 per cent. So the valuation of
1918’s competitive commerce open tc
socialitation would thus be reduced
to less than $14,000,000 worth.
_ , . _ a_„ linxTO hoOTI
1 lie cm.ll Vy UJJU1VM ~ -
prepared exclusively for the consump
tion of the Alaskans who are agitat
ing this question. If only they could
see it, the Alaskans have some
mighty good friends who hate to see
them make themselves utterly ridicu
lous and when they propose to create
a $10,000,000 steamship line for the
purpose of hauling less than $14,000,'
000 worth of goods, they are going ui
against one of the heaviest losing ven
tures ever suggested. They cannol
expect to destroy the Pacific Amer
ican Fisheries, the Booth Fisheries
Libby, McNeill & Libby, and theii
total tonnage must be deducted. Thej
can publish falsehods about the Ken
neeott Copper, hut the Kennecott Cop
per has the right to haul its own cop
per ore in its own ships and they can
not expect any of that traffic.
It appears so simple to understant
why such a steamship line must he i
losing venture that one can only won
der why some practical man in Ju
neau doesn’t show the promoters th<
folly of the enterprise. The Humbold
Steamship Co. was this year taken of
the run because there was no traffic
and goodness knows the Humbold
was popular. The people of Juneai
and Douglas flocked to its support. I
was the most popuar, heroic and grit
ty little steamship that one eve:
heard of, and the minute there is an;
business justifying it a steamship wil
gpt bafck iu tip game. The Alaski
Steamship Co. and the Pacific Steam
ship; Co. are giving to Alaska mor
boats today than warranted, by thi
tonhage 6r passengers carried eithe
northbound or southbound.
A word to the wise ought to be suf
fiicient, but If the Alaskans persist ii
putting on this $10,000,000 steamshi]
service to compete for the smal
amount of competitive freight in th<
, territory, they are surely due to i
rude awakening. You cannot changi
tonnage facts no matter how mucl
you talk politics, and after the Alaski
packers, et al., have completed haul
ing their -goods, the Victoria on a rev
trips could take up and bring dowi
the tonnage represented in the avail
able competitive commerce.
1 And lastly, the promoters shoul<
remember that Douglas and Tread
well and Thane produced many of th<
totals in Alaska during several pas
years, but they cannot help the nev
government line. Then passengei
ships are hard to obtain. Then
aren’t any available, and if then
were, them they would also have ti
compete with "Princes” and “Prin
. cesses.” There Is nothing but fajlun
' on the horoscope of Alaska’s propose*
steamship scheme, utter failure.
Since the abo*m was dictated, tty
hill has been presented to the legisla
ture at Juneau and calls for a ter
ritorial appropriation of $360,000,
which of course is nothing more nor
loss than mere triflling, and a request
upon the United States to Issue $5,
000,000 bonds, which is an entirely dif
ferent matter, and so, if passed, It
will mean nothing more nor less than
the waste in salaries and junkets of
the $350,000, as congress could not
be expected to even consider so
ridiculous a plan. However, the same
line of argument holds good for either
a $10,000,000 or a $5,000,000 corpora
tion for if they handle exclusively all
of the open or competitive tonnage,
they couldn’t pay interst, to say noth
ing of operating expenses, and after
this plain statement of facts.no person
save a lunatic would discuss the mat
ter further.
Lastly, Port Warden A. A. Payssee,
of the city of Seattle, has prepared a
statement showing the tonnage
handled over the Seattle docks for
the calendar year 1918 on business to
and from Alaska, including every
thing from Murad cigarettes and tin
plate to walrus oil and junk. Just to
strengthen our argument, we are go
ing to credit this entire tonnage to
the new proposed steamship line.
From Alaska we received 137,883 tons
and to Alaska we sent 286,596 tons,
a total of 424,479 tons.
Now granting an average rate of
$5.00 a ton and the gross revenue
would be $2,122,395, and this, be it re
membered,assumes the elimination of
every steamship, schooner, barge or
tender heretofore operated between
Seattle and Alaska.
Out of this must be provided in
terest, marine insurance, depreciation
and operating expenses, and with
contracts for oil and other supplies
newly made on a 1919 basis, the high
cost of labor and food supplies, it will
be readily seen that the amount of
gross earnings on the exclusive haul
of all the Seattle-Alaska business, as
represented by the year 1918, could
not possibly cover operating expenses
and fixed charges.
--- '
DESPERADO’S LIFE IS
SAVED BY A HORSE
MARFA, Tex., May 15 (by Asso
ciated Press).—A runaway cavalry
horse saved “Chico” Cano’s life dur
ing a raid across the Rio Grande by
the Eighth cavalry recently. Cano,
who is known throughout the Big
Bend district as a desperate char
acter, was in command of a band of
Mexicans who raided an American
ranch, drove off a herd of cattle to
Mexico. The cavalry gave chase,
forged the Rio Grande and located the
bandits in their camp while they were
cooking supper. Captain Leonard
Matlack, commanding the troop, ord
ered his men to dismount and sur
round the camp. Recognizing ‘Chico”
Cano, Captain Matlack was about to
fire on him when one of the cavalry
horses stampeded and Cano escaped
with a bullet in his leg.
Lay Taken on Engineer
A lay has been taken on the famous
. old Engineer Association claim, on
, Engineer creek, by four well known
■ Fairbanks mining men—Jack O’Shea,
. B. J. Everman, Chris Larsen and Al
i bert Hughes. The ground is owned
; by A. A. Everman and A. H. Wilmore.
[ None of the partners in the lay
are strangers to Engineer creek as
• they have mined more or less on the
! creek Since the early days.
t Supplies will be taken out to the
. claim and active work commenced
■ within the next few days. Engineer
- was a big producer some years ago,
l the Wild Goose and the Owl associa
t tion claims having produced consid
. erable gold. The famous "17” Gold
( stream, which alone has produced
) about a million and a half of gold
• since its discovery, is located at the
mouth of Engineer creek. ,,
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Keating’s
Wee Shop
Take a peep in the Wee Shop, .
And I’ll bet you m/"all
You’ll want to stop in
If only to call.
There are lots of Toys,
Picture Books and Games,
Marbles and Candies and
Dolls without names—
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Ribbons by the mile—
And Frances Fraisure there
To give you a smile.
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