New-York tribune., 1918-10-19
McAdoo Approves
A New System of
Freight Charges
Rates To Be Based on Ma
tional Instead of Local
Lines
By Carter ield

WASHINGTON, Oct. 18-A new sys-
tenn Of freight rate charges, based ex-
clusively on distance and on national
lines, instead Of partly on local con-
ditions, and made by state railroad
commissions whose jurisdiction ex-
tended only to their own borders, has
been tentatively approved by the Rail
road Administrator and will be an
nounced formally in a few days.
The plan, which was worked out by
Edward Chambers, director Of traffic
for the railroad administration, pro-
vides for uniform freight classifications
for the entire country, under re-
gional and zone system. There will be
a bitter fight by the state railroad COM
missions against step which their
epresentatives here think means lop-
ping OFF their last useful function.
The idea of the plan is to harmonize
interstate and intrastate rates. 1t will,
its advocates say, accomplish almost as
much for the railroads in freeing them
from the conditions imposed in the ad
justing of freight rates by state COM
missions as was accomplished by re-
moving the hampering influence of the
antitrust laws when the railroads we're
taken over by the government.
Tie Interstate Commerce Commits
sion has set November 10 for hear
ing. In view Of the fact the National
~ Stof Roi
sioners holds its convention here just
prior to that date large attendance is
expected at the hearing.
Previous to this general hearing. it
is the intention of the Federal admin
lstration to send examiners to different
sections OF the country to take the
testimony of shippers. local traffic COM
missions of railroad and state commits
sions. The purpose of this is to get
criticisms of any defects that may be
seen in the plan as adopted.
rates it is hoped also to standardizc
other charges, particularly switching.
1t is understood that the Administra-
tion is considering seriously a milling
in transit charge of cents.
The new rate plan as described by
those who have been told about it
retains the present classification terri
tories, Western, official and Southern.
Each of these will be divided into
zones and the rates within the zones
will be uniform and made on mileage
basis. eliminating as much as possible
commodity rates and exceptions to the
classfcatfons.
Certain of the zones will be con-
sidered as the 100 per cent rates,
which will be standard. Neighboring
zones will more or less but def
mite percentage of the standard rates.
Uniform rates have been demanded
tor a long time by the railroads.
They also have been making deter
mined efforts for number Of years to
get rid OF the state commissions, con-
tending that state regulations and re-
strictions have only curtailed the ef-
ticiency of the roads without benefit
ing the public.
Sweeping away the state classiflca-
tions and commodity rates will upset
the business world, it is contended by
those who are opposed to the uniform
Classification plan. In every state. they
say, factories have been built and
business developed on the existing
system of rates, and any attempt at
uniformity will throw this whole
scheme OUT OF gear.
This proposed plan" an advocate of
state control said, "simply wipes ont
all that has been ACCOMPLISHED hv the
states in equalizing rates in their own
borders. 1t means an end to local con.
troll" 'oN'' 'on-