The Birmingham age-herald., 1922-12-19
BAD FAITH CHARGED ]
 T0 RAIL CARRIERS
 IN RATE REVISION
Substitution of Class Tariffs For Less Than Carload Commodity Scale Plan,
 Shippers Say

ShIppefS ana tFaIIlC D4feduS oA Alabama and other southern states take the position that the rail car riers have not acted in good faith with the shippers regarding tho gen eral revision of class rates in the southeast, decision on which is ex- pected to be rendered shortly by the interstate commerce commission, but are endeavoring to forestali action of the commission through numerous proposals that would do away with less than carload, commodity rates and substitute class rates that would be much higher.
 History of the general investiga tion of the southeastern class rate structure leading up to the present time is as follows:
 History of Revision
 In July, 1921, committee com posed of the executive traffic off cers of the southeastern carriers, commonly known as the fourth sec- tion committed. submitted to the shipping public at Atlanta, a revised basis of class rates which they pro- posed to establish to, from and be- tween points within the southeast. 1 The purpose of the revised class rates was to cure the existing fourth
 
 all rates in the southeastern terri tory on strictly fourth section basis the fourth section of the interstate commerce act being that portion of the act which declares unlawful q rate for short haul which is higher than rate for longer haul. when the shorter Is included within the 1 longer.
 At this conference between the au- | lf riers and the shippers, 1t developed that there was difference of opin- ion as to the reasonableness of the | class rates which they submitted. 1 After a discussion lasting for two or ! three days, it was decided that there was no hope of an agreement, and i it was agreed that the shippers as well as the carriers should request the interstate commerce commission to institute general investigation of southeastern class rates, and after hearing from both sides, to prescribe reasonable rates.
 AIl-Around Revision
 1 The interstate commerce commis- sion favorably considered the request of the carriers and the shippers, and accordingly instituted the investiga- l tion, the scope of which covers re vision of all class rates, as well as | lHt CdnCclldl LII 1CSS sNdA IOfid Goul- modity rates. In other words, the commission asked for facts and en- i ilightenment as to whether it was practical to prescribe a class rate structure which would permit the | cancellation of quite number of less carload commodity rates. if not all of them. This investigation has been actively handled by the com mission, and the shippers as well as
 
 testimony in support of the class rates advocated.
 1 The entire question is now before the commission for adjudication, and it is contemplated that an early de- cision will be rendered, in that Com missioner Eastman himself had \ charge of the hearings in connection .Iwith this case and from all indica- Itions, an, early adispositlon Will be Imadea of the same. s1
 Forestali Commission
 Explaining the position of the ! shippers and the traffic bureaus in ! this matter a traffic expert said: I Tt Is to be regretted that the rail carriers are not satisfied to await | action by the commi ssion on tho can cellation of these less carload com modity rates. but instead are almost ] daily taking action to withdraw these rates anu dpply luS ciaSS IdteS III lieu thereof, which means enormous increases. Just recently the carriers have proposed, through the Southern 1 Freight association (which is a com mittee composed of carriers repre- sentatives, to receive expressions I from both the carriers and the pub !. lie regarding revised rates) to cancel out the less carload commodity rates on stoves, ranges, hollowware, etc. from all southern points of produce i tion to all points, and an announce ment has just been made that a pro- posal has been filed to cancel out all less carload commodity rates on iron and steel articles from southern ter ! ritory to all destinations. Aside from 1 the fact that enormous increases, | ranging from 50 to 250 per cent, will result from the cancellation of these | less carload commodity rates, there remains no doubt in the mind of ! the average shipper but that the car riers have failed to keep faith with the shipping public and have deviated from the agreement made the entire lquestion of cancelling out less car | load commodity rates and class rates would be left to the judgment of the l interstate commerce commission
 "Of course, the shippers have re- course to the commission in connec- 1 tion with these specific adjustments, but this action only demonstrates that the carriers are forcing upon ' the shippers and their traffic repre- sentatives the handling of these rate 1 questions when 1t was agreed in the summer of 1921 that these matters should be held in abeyance pending outcome of the southeastern class rate investigation.
 Railroad executives are contin- uously complaining that their affairs are regulated by governmental agen- cies and that they are without initia- tive in the handling of their business, tbut without this regulation, what opportunity would the shippers have to receive q fair deal in view of the ] happenings enumerated. Tactics of 1 this character on the part of the car- riers will only tend to bring about even more stringent regulation"