The Birmingham age-herald., 1923-02-15
GREAT VICTORY IS WON 3y WARRIOR OVER RAIL RATES
Rate Division Is Held Unfair by Decision-River Traffic Will Be Given Big
 Impetus
Continued From Page one)

ences in friendly negotiations, and we have faith that they will do so.
 The proceedings before us. how ever, will not be closed. but will be kept open for further and more spe- cific action, if that proves necessary"
 The commission then proceeds to urge the necessity of the barge lines on the Mississippi and Warrior rivers, and adds: Clearly everything that can be done ought to be done to give this experiment a fair opportunity to demonstrate it's worth, and in this endeavor the project should be viewed in the light of the service, which can be reasonably be anticipated and without permitting vision to be ob- scured by the difficulties and embar- rassments which surround every new enterprise, and particularly one which had been compelled to start with a heritage of worn-out and inadequate facilities. On the other hand, it is equally clear that the experiment will not be fairly conducted if the barge line Is permitted to tap the resources of the rail lines by depriving them in the services they perform in con-
 
 The commission contends that 1t has no formula which can be applied to determine fair divisions of joint rates. It declares it's inability to ap- prove a formula suggested by the barge line based on rail mileage be- tween ports rather than on barge mileage.
 This" continues the commission. 'is essentially plan for di- viding rates by using distance pro- portions and without giving adequate consideration to terminal expense, varying densities of traffic, varying difficulties of transportation and other similar factors which affect a just division.
 Unable to Apportion Rates
 Nor have we evidence which would enable us to apportion rates, either singly or by ports or by territorial groups in accordance with the rela- tive costs of rail and barge trans portation. Obviously the only feasi ble approach to the determination of fair divisions is the one used by the railroad administration. As a basic proportion, we accept the prnciple that the rail lines should receive the same revenue as they would receive if the traffic moved all rail via the same gateway.
 However, the attempt to apply this principle has we believe, shown that it is subject to certain important qualifications.
 Clearly the usefulness of water routes to interior points ought not to be dependent upon the extent to which rail lines are consolidated. It follows that joint rates over rail |. <l. T without regard to the extent to which rail carriers may be sshort-hauled, and not upon a plan designed to dis courage the use of such joint rates. The records show that the exaction by rail lines of their local rates as divisions under such circumstances has for it's admitted purpose the pro tion of the long haul. In other words. it is means of accomplishing indi- rectly what Congress has sought to prevent. Nor do we believe that the railroads will in the long run suffer in such situations from more liberal divisions to water carriers.
 Not Pcrsuaded of Fairness
 We are not persuaded In instances where the present rail divisions are equal to or exceed the local rail rates. that the barge line is being fairly treated. nor indeed that it is being fairly treated in all other sit nations. How the divisions should be changed is more difficult question, but we are impressed by the offer of the Alabama and Vicksburg and the Vicksburg, Shreveport and Pacific. These lines are viewing the problem as feeders rather than as competitors of the barge line.
 Aside from the matter of divisions which exceed. equal or approach local rates, the division plan devised by the railroad administration .and now