The Birmingham age-herald., 1918-11-15
Denies Authority of 'ATem- porary Bureau" to Fix
 Rates Within State
CONTEND INCREASES
 : WILL BE VERY LARGE
President Kennedy Writes Letter Setting Forth Contentious of Alabama Public Service
 Commission

Montgomery November 14-(Special) The Alabama public service commission Thursday fired it's first gun into the ranks of the United States railroad ad- ministration by refusing to agree that any other body but the one designated by the people of the state has authority to dos away with the 110 commodity rates substituting therefor the pro- posed uniform classification which will result in an increase in freight rates of approximately 75 per cent in addition to the increase of 25 per cent which was permitted as an emergency measure Kennedy, president of the Alabama com- mission, made it clear that "the tempor- ary federal bureau has not the constitu- tional right to change Alabama rates.
 MT Kennedy's communication was in answer to letter received from C. A. Prouty, of the United States railroad ad- ministration. MT. Prouty enclosed a uniform classification, which he pro- posed to enforce in the southern states This classification would result in the no commodity rates in Alabama being nullified Practically 80 per cent of the freight in the state moves under the 11O commodity rates, which have stood in- tact through all the courts.
 MT Kennedy characterized the United States railroad administration as a temporary federal bureau" created for an emergency. He does nat believe Con- gress intended to delegate the states tn feY r-Y body with limited tenure of office"
 In part the letter follows:
 Your favor of the fourth, addressed to the public service commission of this state. relative to the proposed estab- lshment of 8 uniform classification and a uniform scale of rates for both intra and interstate traffic over a consider able territory, presumably at least the southern territory, received.
 ITO the second paragraph of your letter referring to the removal of dis criminations by uniform rates to be used in southern territory for both intra and
 interstate traffic, we disagree. In the first place this commission claims the constitutional right and the sole right to promulgate rates within the state of Alabama relating to intrastate traf- fife, and therefore, can see no good that may result from the discussion of this matter with federal bureau with a Him. tied tenure of office. created for the op- eration of certain railroads during the war period And further, in all the tes- timony that has ever come before this commission since my connection with it period of F years, the carriers have invariably combated the theory of a uniform rate, even for intrastate traffic applicable to more than one state, hold ing that traffic and transportation con- ditions are so dissmilar that scale of rates that is just in one would be un- just in another. If the contention of the carriers is true then it is obvious that a scale of rates applicable over con siderable territory, both for intra and interstate traffic, is discriminatory
 In the next paragraph MT. Kennedy answers the contention of MT. Prouty that the uniform rate will not increase the burden now carried by Alabama shippers and consumers. Mr. Kennedy contends that the proposed rate will in- crease the burden from 50 to 75 per cent.
 The commission president expresses pleasure that the railroad director or his subordinates do not intend to take nasty action in the matter. In this con- nection the letter says: With this in ss1ind this commission expresses itself freely and does not think that it was the intention of the Congress in creating temporary bureau to operate railroads during an emergency period, to attempt to delegate the constitutional rights be- longing to the states of making their own intrastate rates.