New-York tribune., 1921-11-06
Ship Men Ready
To Attack Cuts
I'm Rail Rates
Fear Loss of Trade Through
n. Z. to Pacific Coast:
Lines Will Seek to- Hold
Volume of Water Trade
Advantage for Chicago
Merchants Association Here
Begins Inquiry Into De-
creases Ro a d $ Propose

The prospect that the proposed re-
faction in transcontinental rail rates
rot only will iniure the trade Of the
New York district. but also will de-
crease the volume OF shipping through
the port, is the subject of close ex-
animation BY organizations here and
will be point of attack Mt the hear
ings which begin next Friday before
the Interstate Commerce Commission.
Ioastwise steamship lines are pre-
pairing TO fight many of the rate re-
daetions on the ground that they
were. not intended to equalize water
competition through the Panama
Canal, but to divert to the rail car
riers q great volume az traffic that
normally should move by water. They
vii attempt to show that some of the
proposed rates from the interior are
beiow the combined rail and water
tariffs through New York.
VIII Question Rail Lines
Other organizations, including the
Merchants Association. are ready to
ask the rail lines questions on many
changes, to determine if there is an eff
fsrt TO place producing regions in the
interior in better position with re-
gard % trade on the Pacific Coast than
New York now enjoys. 1t is the con-
tention OF J. c. Lincoln. manager of
the traffic bureau of the association,
that me city is entitled to the benefits
Of its seaboard location and that this
advantage should not DC destroyed
arbitrarily by the new rate structure
The attitude OF the association, Mr.
Lincoln said, is not to enter into the
fight between the railroads and the
water lines, but to protect the inter
ests Of New York. The steamship COM
panies are endeayoring to save the
business which has been built up in
intercesstal traffic. On many points
both will oppose the reductions, but
VIII attack from different angles.
The railroads are asking the Inter
state Commerce Commission for per
Inlssio, to disregard the provisions of
Section a of the Interstate Commerce
act, which prevents charging more for a
.oHg than a short haul. They propose
TO re-establish the postage stamp
rates. in effect before the war, by max
Ing Identical rates from New York and
Chicago to Pacific coast points, as an
instance.
Rate on Canned Goods
To take a concrete case, the rate on
a carload o. canned goods is now
a.s37. per 100 pounds from New York
and 81 so from Chicago. The proposed
rate IS s1.I5 from both cities At the
l. c c. hearings the railroads will be
ssked why this decrease should be
made 1t will be pointed out that the
existing water rate from New York
through the Canal is 75 cents, while the
inland rail haul from Chicago 90 New
YORK. is SO cents. Accordingly canned
goods from Chicago to the Pacific
Coast can now go by rail and water for
a.S8 per 100 pounds and by rail alone
FOR si.50. Under the change, the same
commodities could go by rail for sl.l5.
The effect, it is pointed out, would
be to divert this traffic from New York
n other cases, it is said, Chicago pro-
tucers will be given an advantage over
New York. regardless of the low water
rate from this port.
Mr.. Lincoln said the Merchants AS
sociation will not base its arguments
upon any one commodity, but will take
into consideration the hundreds of
TENS contained ii the railroad list
he admitted that in large number OF
instances, perhaps on canned goods, the
rail carriers may be able to substanti-
ate their claims that reductions are
forced b. water ompetition, but he
believes they will fail on other ship
ments.