Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-05-31
Rail Board Trying
to Save "Face" By
Penalizing People

Washington. May si.-Coal users OF
the northwest are about to be penal
iz,d Sll,000,OOO on their 1919 supply TO
prevent a further increase in the
Sl.sJn. 0JO, Geo deficit resulting from
government operation OF the RAILROADS.
O this huge sum, about s2,'90,OVO
will go to the railroads In increased
freight rates. The remainder viii be
poCketed by the dock dealers al the
lake ports by an arbitrary price IN
crease the freight hates make pos
sihle.
This amazing situation was revealed
late yesterday AT hearing before Rob-
ert Wright, assistant to Traffic Direc-
tor Edward +. Chambers of the federal
railroad administration, granted TO rep
resentatives from the northwest and
other Interested sections
S1I,0c0, 900 Penalty Averted.
Fred W Putnam Minnesota railroad
and warehouse commissioner; j. IL.
Beck. OF the ST. Paul association, I.
\. McGrath Of the Minneapolis Civic
and Commerce association, State Sem
ator George H, sullivan and Stanley
HouCk spoke for Minnesota, and they
talked straight from the shoulder. They
told the federal officials the northwest
is being penalized 10 the tune Of slf,-
600 900 just 20 help save the face OF
the federal railroad administration.
Mr.. Wright. at the conclusion Of the
hearing said he will announce a deci-
sion AT the earliest possible date. The
-
that it viii require some time for
study and will be passed on by Direc-
tor General Walker D, Hines. The
new rates. which are being opposed.
are supposed to so into effect July l.
Change IN Order Expected.
The northwestern delegation made
an impression on the administration
officials. and II is probable the order
viii be changed.
The specific thing being fought Is
ar advance Of 90 cents n ton on coal
shipped from Illinois mines to the
northwest Minnesota, NC.-th and South
Dakota, Wisconsin and northern Iowa
get coal from this region. II is esti-
mated 100000 tons VIII be shipped
there this year. A 3o-cent increase
amounts to s2,iOUu,Ovp.
The increase was ordered some time
ago by The railroad administration ar
ter the lake dock dealers had COM
planned that because of 4 disparity be-
t%cC1 the lake and rail rate and the
Illinois rate. they could not compete
with Illinois coal. Their fret ght
amounts TO 80 cents a ton more than
the latter.
Before the government took over the
roads, these rates were on a parity
The rate increase Of last Jgne. ordered
by Director General W. G. McAdoo,
upset this parity. One increase was
made on coal from Illinois to the
northwest On lake coal an increase
was authorized from the mines to the
Lake Erie ports and second increase
from Duluth and Superior docks TO the
consumer
The dock dealers asked the federal
government to reduce the lake and rail
rate 80 cents TO put them on an equal
ity with dealers in Illinois coal. Con-
sideration was given their complaint
and the administration come back
with replay to this effect:
we can't decrease the lake and
rail rate, but we will increase the Il
linois coal rate, which viii have tho
same effect
Increased Dock Price Forecast.
That suited the dock dealers. but it
didn't meet with the approval of con-
sumers in the northwest II did not
take them long to realize that. in ad-
Gition TO paving 80 cents ton extra
for coal from Illinois, they also would
pay the same increase for coal from
lake docks. Some 100000 tons of
coal is shipped TO lake ports annually.
The dock dealers had been able to do
business under the present rates.
There is every reason to believe. ac-
cording to the testimony at yester-
days hearing, that. as soon as the
price Of Illinois coal is boosted 30 cents
a ton to cover the increased transpor-
tation cost. a similar increase will be
made on coal sold at the docks.
Minnesota this year will get about
1000 O0J tons of Illinois coal and TO-
600 900 tons from the lake ports. Thus.
if the new Illinois rate stands. an item
Of s36o0.00o will be added to the
Gopher states coal bill.
Revisions Always Upward.
The policy OF the railroad admins
tration in this instance is the same as
it has been in virtually all cases where
il has been necessary to readjust rates.
The revision was upward. Witnesses
at the hearing said there is no record
to show where a revision downward
has been made by the federal govern
ment.
The course taken by the adninistra-
ton. if changed. VIII turn about
81 700, 900 into the roads Golfers. 1t
was suggested at the hearing that this
sum won't make much of dent in the
s1.20e0N0 deficit.
MY clerk tells me we have had
regular barrage of protests against this
order" Mr. Wright said, when he call
ed the hearing to order.
The hearing room was filed with in
terested persons. Feeling was intense
on both sides. Late in the day the at
mosphere cleared away somewhat and
the impression Of the northwest rep
resentatives' is that as result of the
Ia,;, presented ~ tim,
tration will change the order.