The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-07-20
GRAIN SHIPPERS
WILL SUFFER BY
BOOST IN RATES

The fun import of the cost to Mem
phis shippers OF the proposed order OF
the interstate commerce commission fix
ing Memphis freight rates on the so
called dry-land basis and the elimlna-
ton OF Memphis as a competitive point
together with the general increase IN
rates soon to be announced, Is becom-
ing more impressive as the various trat-
fic bodies compile authoritative figures
on the increase based on actual tonnage
handled here.
J.B. McGinnis, commissioner for the
hay and grain division OF the memphis
Merchants exchange, completed the
eompilation of data Tuesday, based on
The actual volume OF inbound gram.
grain products, hay and alfalfa meal
received at Memphis for a flve,year
neriod ending Dec. 81, 1919, which shows
mat rates 10 Memphis on the so-called
dry-land basis will result In shipptirsso
freight bills increasing over $S,OOu'Voo
more than on the present basis OF rates
for the same volume OF business
Nv applying that portion of the IN,
hound tonnage for the five-year perlod
now moving on rates constructed on a
competitive basis, which constituted ~
per cent OF the total volume, anu N
creasing the present rates TO memphis
to the level of the so-called dry -LlilI
or noncompetitive basis, the Increased
freight charges would be more than
81 SOC, 600 for the five-year period, &C
cordinR to Mr.. McGinnis' figures. Ihls
renresents an Increase Of 80 per cent
on the total charges OF all receipts,
or a per cent increase In the charges
on the tonnage moving on competitive
rates.
Aside from the proposal TO place
Memphis on the dry-land basis, the
railroads are seeking a general increase
OF 40 per cent, and II Is believed thal
they viii obtain rs per cent advance
in rates generally. including the airy
land rates. II this is done ana INC IN.
bound rates to Memphis are advanced
10 the level OF the, Increased dry lane
rates. the amount OF Increase on th'
Tonnage moving at present on competi'
tive rates viii be S2,100,000 for Tn
| five year period. more than SbOO,VVV pc
year. This win represent an advhnc'
Of so per cent on the total of all freigh
charges, or rs per cent increase In tn,
charges on that tonnage moving OF
competitive rates at present,
'In addition. an advance OF 70 pc
cent on the present noncompetitive IN
bound rates will result In an increase
OF S3Sb,uVV lot inc llNe-yedt tohhok
not moving on competitive rates. max
Ing the grand total increase more thar
50, 600, 900
''Taking inbound grain that can nov
be moved from point OF origin through
to Memphis via river. using the actua
tonnage for the five-year period, the
increase would amount to about $780,
600 II the present Memphis rail rate
were advanced to the present dry LAND
basis after the dry-land rates have
been increased 25 per cent"
The figures quoted by Mr. McGinnii
were carefully prepared from the actua
records Of the inbound grain move.
ment for the guidance OF local grair
dealers and the river navigation com
mittee OF the Memphis Chamber oil
Commerce, in working out plans for tn,
establishment Of boat line on tn,
Mississippi river to revive actual river
competition with the railroads and re,
store competitive rates.