Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-06-18
N. C. COMMISSIONER
LEAVES CONFERENCE
Declares Carolina Rates Proposed by Carriers Are
Most Brutal Ever Submitted Railroad Officials Say
Rates Do Not Reflect Policy Submitted for Review

a. J. Maxwell Of North Carolina. a
member OF the committee OF i've
Southeastern state corporation com
inissioncrs who have been sitting
with Commissioner Joseph -. East
man OF the Interstate Commerce
Commission in the Southeastern
class-rate inquiry at Atlanta. Ga.
has written to Mir. Eastman resign
ing his seat al the hearing and
charging THAT the Carolina rates
proposed by the carriers are the most
brutal ever submitted" lie says he
IS retiring because he is unequal to
the task 90 maintaining Il pTctcnse
81 judicial poisc." Mr.. Maxwell left
Atlanta soon after Brooas O. Brown
announced the proposals to which
lie objected.
Railroad Head. Reply.
In reply 10 "A letter addressed by
= Maxwell OF Tho North Carolina
Corporation Commission TO j. X. Ken
~ president. Atlantic Coast Line
Railroad COMPANY. :. Davies War
Geld. president SeabOard Air Line
hallway Company. Fairfax Harri-
son. president southern Hallway
Company; George r. LOYAL president,
Norfolk aud Southern Railway com
rdny: y. 6. Medium. president Caro-
lima Clinchhcid and Ohio RaiIwav
hnh y. -. Maher. president Norfolk
and western Railway Company. the
following letter has been addressed
TO Mr.. Maxwell by r. \ Brand vice.
President Atlantic Coast Line Rail-
road Company. j. J. Camptoa, vice
president Carolina Clinchheld and
ONO Hallway: l.. II. Kyle. vicc-p rcsi-
"en, Norfolk ana Southern Railroad
Company. \. q. Needles. vice-pr.si-
dent Norfolk ana Western Railway
Company g. Il. Capps, vice-presl
Neht Seaboard Ar Line Railway
Company. and l.. Green vice-presI-
"eni southern Railway COMPANY, IN
der dat. OF June IS.
Letter To Nr. Maxwell
Acknowledging your letter OF
Jane :. addressed to ]. Il Kenly.
rresidcn; Atlantic Coast Line Rail
road Company; :. Davies Warne,d
president Seab0ard Air Line Hallway
company, Fairfax Harrison. presi-
dent Southern Railway Company:
George Il. Loyal. president Norfolk
and southern Railroad COnpany: y
Medium. president Carolina
'linchfeld and OHIO Railway. and
y ID. Mahcr. president Norfolk and
western aka .4Yay Company. Win
which YOU enclosed copy o.. your let
tor ot June ) 20 NJ. Eastman
r
flers in the general inquiry now
pendins before the Interstate Com
mcroe Commission are as 10 the
Carolina territory. In response to n
specific requirement Of the Interstate
commerce Commission that the car
riers submit a basis OF revised rates
10 points In that territory conforming
TO the principles laid down in the
interstate Commerce Commissions
general fourth section. order 3sCC.
and 10 conform TO the long and short
haul principle OF the act to regulate
commerce as amended In June. 1910.
and AS further amended b. the trans.
pprtation act OF 1920
Itntcs Submitted for Review.
IN" rates do not reflect the policy
or initiative Of any carrier or set OF
carriers. they are submitted for re-
view and determination by the In
'erstate Commerce. Commission un
der compuls!on OF existing law.
You are mistaken in your con
lecture that tho system Of rates suh-
mirted by tho carriers for aDprnvaI
&c the Interstate Commerce Commits
sion. insofar as they affect North
carolina territory. are Influenced nv
lines operating through southeastern
territory. The rates submitted ar.
based upon the use OF the short line
routes VIA the Virginia gateways
You are also mistaken in your
conjecture that the rates heretoforo
ia force from Cincinnati and Louis
VIE TO the Eastern North Carolina
territory were established because
IN. proximity OF that territory to
the Virginia cities
1T is an historical fact that the
basis Of rates which you sneak of as
having been in force for ,hirtv-fve
years was hrst proposed and estab-
Iished by lines operating through
southeastern territory independent.
~ or the views of the more direct
routes through the Virginia cities
That basis OF rates was established
Tor the purpose OF giving the Ohio
RIVER cities the benefit of an adjust,
ment OF inbound and outbound rates
which eGualled the through rates
from points north Of the Ohio River
wa the Nirgini cities. which were
'nen made by combination OF locals
10 Illustrate this fact: the frst-class
iate chicago TO the Virginia cities at
me time this basis was adopted was
:. cents per 100 pounds. the Arst-
Grass rate, Chicago to Cincinnati and
Louisville was 80 cents nor mn
pounds. the difference OF 20 cents
vas used as basing rate to the Vir-
Slnla cities for Carolina territory
w" the result that the combination
OF rates on Cincinnati and Louisville
"tc""he the same az the combination
OF iuIl local rates through tho vir.
Sinia cities. This basis was 4, nu,o
" arbitrary one and for the sole nur-
nose oil protecting Cincinnati and
Louisville as distributing points on
traffic originating north OF tho Obin
river. The thing itself is ,recisnjv
that which you have comp,o;ned -,
with respect OF rates from tho east.
ern seaboard TO North Carolina dos
tinations made by combination nno,,
the Virginia cities
Lines operating south from ci,
c!nnau and Louisville are no lonrar
able to continue the comb;na,ion
basis Of rates from the Tertiary
north of the Ohio River to sonth,
eastern and Carolina territory. nor
may they longer continue an adjust.
mont OF rates 20 Eastern North Car.
olina in conflict with the amended
long and short haul requirements OF
the commerce act: nor may thew
longer me respons,hilI;,, D.,
rates mediate points includ-
pS of Western North
faro emce. in making the
pres, ''iiai as to total rates