THE TRANSPORTATION PROBLEM
To those who seek answer to the
oft repeated question “What is the
matter with Alaska,” a most prom
ising field for investigation will be
found in the domain of water trans
portation.
The Attorney General of the Ter
ritory has correctly pointed out that
distances must be measured by the
“cost of transportation.” When this
is done, it will be found that the
south end of the Alaska railroad is
four times as far away from Seattle
as Hongkong is from San Francisco,
and the south coast of Alaska is
about twice as far from the nearest
American port as is Puget Sound
from New York.
Let it be observed, to begin with,
that, per ton-mile, the cost of trans
porting freight on the steamship
lines operating between Seattle and
Alaska is considerable more than
twice as much as on the continental
railroads.
On the intercoastai route, through
the Canal, the ton-mile rate is ap
proximately only one-ninth of what
it is on the railroads, and about one
eighteenth part of what it is on the
Alaska water routes.
(These observations do not apply
to cannery freight which is enjoy
ing special privileges.)
The following irrefutable facts fur
nish food for thought and should be
sufficient to prod even an indifferent
intellect into activity:
The rates for all merchandise sh'p
ped from Seattle over Seward and
Anchorage for points on the rail
road, under joint rates, yield th?
ocean carrier an average of $19.07
per ton of 2,000 pounds.
Freight shipped from Seattle to
Seward and Anchorage under local
steamship tariff, apart from cannery
freight, yields the carrier an average
of $24.14 per ton of 2,000 pounds.
For comparison the rate on such
commodition as canned goods, dried
fruit and beans, on the Seattle-New
York route, has been from $6.00 to
$7.00 per ton of 2,000 pounds.
The rate on such commodities as
wheat, flour, steel, and rice, on the
Seattle-Hongkong route, has of late
been $5.00 per ton of 2,000 pounds.
On the routes between Seattle and
Southwestern Alaska cannery freight
is carried for about one-third of
what other freight is carried.
Copper ore from Prince William
Sound ports is carried at cost or less.
The rate on hay is $16.00 a ton
and on mill feed is $10.00 from Se
attle to Ketchikan.
The only contribution made by the
stockholders to the Alaska Steam
ship Company was property of the
value of $1,500,000, for which stock
of the par value of $3,000,000 was
issued.
Since the organization of that
company, fourteen years ago, the
stockholders have received $3,220,000
in cash dividends, and at the close
of 1922 the net assets of the com
pany, as sworn to by its officers,
were $7,543,033.75.
The profits of the company were
as follows at the close of 1922, to
wit:
Gross Assets. $8,071,384.00
Liabilities .-. 528,350.25
Net Assets . 7,543,033.75
Less Investment . 1,500,000.00
Undivided Profits . 6,043,033.75
Cash Dividends . 2,220,000.00
Total Net Profits . $9,263,033.75
This represents a net earning of 44
per cent, per annum upon the money
invested by the stockholders.
And yet, the steamship company
has carried the south-going ore of
the holding company at less than
cost.
The Measurement System
One of the outstanding evils of
the present situation is the system
of estimating freight charges upon
measurement at the arbitrary rate
of 40 cubic feet to the ton. This
system has now been abandoned
upon all American routes outside of
Alaska and is in use only in inter
national trade, and there only on
some commodities.
It has been reported by the Alaska
Steamship Company that all the
freight shipped from Seattle to the
Interior joint routed over the rail
road measured 56.6 per cent, more
than it weighed. To find the aver
age rate for general merchandise
throughout the year the steamship
tariffs, after adding wharfages at
both ends, should be increased by
56.6 per cent. The average freight
rate between Seattle and Alaska
ports on general merchandise ex
clusive of cannery freight will there
fore be as follows:
Seattle-Ketchikan, $16.51 per ton
weight; Seattle-Juneau, $17.29 per
ton weight; Seattle-Cordova, $25.12
per ton weight; Seattle-Seward, $25.
12 per ton weight; Seattle-Anchor
age, $28.25 per ton weight.
Some Illustrations
From the Attorney General’s re
port we copy the following illustra-,
tions.
During the month of December,
1922, fourteen cases of rubber boots
were shipped to Juneau from New
York via Panama and Seattle. The
freight charge from New York to
Seattle, including wharfage, was
$15.10; from Seattle to Juneau the
freight was $2s.27. The rate from
New York was $15.00 per ton weight.
The rate from Seattle to Juneau was
$9.00 per ton weight or measure
ment ship’s option. Nevertheless the
freight on the thousand miles from
Seattle to Juneau was 80 per cent,
higher than for the more than 7,000
miles from New York to Seattle.
A shipment of merchandise was
sent from New York to Ketchikan
via Panama and Seattle. The freight
bill from New York to Seattle was
$40.77. The charge from Seattle to
Ketchikan was $68.80. The cost of
transportation over the 743 miles
from Seattle to Ketchikan was 70
per cent, higher than the more than
7,000 miles from New York to Se
attle.
During last September of 1922 a
fire engine was shipped from El
mira, New York, to Anchorage. The
freight charges on this shipment
were as follows:
The railroad charge from Elmira
to Seattle was $453.79.
The charge from Seattle to An
chorage was as follows:
Ocean freight, 1285 cu. ft., 38 1-8
tons @ $15.50, $497.94.
Extra penalty for heavy lifts, $5
per ton on weight basis, $25.00.
Seattle wharfage, 381-8 tons (o)
$1.05, $33.73.
Anchorage wharfage, 381-8 tons
@ $1.50, $48.19.
Penalty weight, 3 tons (5) $3.00,
$9.00.
Switching charges at Seattle, 32 1-8
tons @ 25c, $8.03.
Crane service at $5.00 per hour,
$5.00.
Total, $626.89.
The transportation over the 1500
miles from Seattle to Anchorage cost
28 per cent, more than the railroad
haul of 3,000 miles from Elmira,
New York, to Seattle.