The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-08
Big CUT ORDERED
IN FREIGHT RATE
Southern Pig Iron Producers
Win Victory Over
Railroads.
AFFECTS MANY CARRIERS
Decision Of Interstate Com
merce Commission Likely to
Cause Protest.
AFFECTS MANY CARRIERS

WAsHrSoroS. July THE Interstate
Commerce Commission handed down to-
day decision reducing the freight rate
on pig iron from Alabama and Tennessee
to Northern and Eastern consuming points
The decision Is victory for the Brming-
ham pig iron producers and those Of Ala
hama and Tennessee generally and will
enable these Southern producers more
effectively to compete with pig iron pro-
duccrs in Ohio. Illinois. Wisconsin, Penn
sylvania and Minnesota
In substance, the commission has cut
the rate approximately IS cents a ton on
all rail- and something like as cents on
rail and water hauls. Some OF the car
rers affected about score in ali, by the
reductions In the important low grade
commodity are the Eastern railroads,
which are now petitloning for "A general
Increase in freight rates This feature Of
the case attracted widespread attention
here. although no attempt was made tO
draw any definite differences from IL ia
regard to the advance rate case
The decision was handed down in a
complaint brought by lie Sloss-Shef'ield
Steel and Iron Company aud others In
the birmingham district and Ia Tcnnes-
see. but after II was filed foundries and
other users of southern pig iron located
In the North East and u eat interviewed
In behalf OF the complainants and furnace
operators In Ohio, Illinois. WISCONSIN,
Pennsylvania and Minnesota interviewed to
have the present rates maintained.
The decision will likely evoke a storm
OF protests from the Northern furnaces as
1t may cause a general readjustment Of
rates on pig Iron. The decision Of the
commission is In part as follows:
h.. .t..A hA tV
mlngham district 10 Louisville. ST Louis
Chicago and to Boston rail and wafer are
unreasonable.
The present dlfferentials between the
Southern furnaces should he main aimed,
AS should also the rates now obtaining to
the Ohio River, TO points In Central
Freight Association territory and the
East No change will he ordered in he
proportional rates to the Ohio River AT
this time for the reason that this would
throw he entire reduction upon the
southern lines. The proportional rates "a
and from the Ohio River should be- 80
revised as to make the through rate In
/ Chicago, for example not In excess OF ~
a gross ton.
THE existing rail water and rail rates
from Birmingham To- interior New England
points are unreasonable.
Sufficient testimony has not been
presented upon which a definite find ng
with respect 10 the all RAN ra'es 10 New
England can be made. As to the reason
ableness OF the present differentials be-
tween all rail and rail and water no opin-
ion Is expressed, but nothing herein said
must he taken as a Justification for an
Increase OF such differen'ials. With this
understanding. the readjustment OF the
all rail rates to New England points Is
left to the carriers"
The commission reviews the Southern
pig iron industry and says:
Figures varying from $3.50 70 81 per
ton have been offered as representative
of the lower cost Of producing pig iron
In the South We are not prepared to
say what tn exact difference In the pro-
duclng cost is nor do We think !. vital
here for the reason that the southern
operator is entitled to every advantage
growing out Of his economic location Just
as the Northern operator is entitled to
any benefit that may accrue 10 him by
reason Of his proximity To the markets,
and these ADVANTAGES should not be dis
turbcd by this commission by fixing
freight rates predicated upon the cost OF
production"