The Birmingham age-herald., 1924-12-11
FREEING THE WATERWAYS

cause they have been forced to compete, not with normal rail rates, but with rates specifically lowered in waterway terri tory for the purpose of putting the barge lines out of business. This is no new railway policy, but is as old almost as the railways. As Will Irwin has shown, in his masterly exposition in this news paper of the manner in which the great transcontinental trunk lines are now seeking to destroy the Panama Canal, the root of the matter is in the violation of both the letter and the intent of Sec tion of the interstate commerce act of 1887. This section provides that, except in unusual cases, the railroads shall not charge less for a long haul than for short haul between intermediate points on the same line. The railroads have been through an amazingly liberal interpreta- tion on the part of the Interstate Com merce Commission.
 As respects Birmingham and the War rior in relation to rail rates, MT. Irwin says that, "just when the Warrior was
  ing on parallel lines reduced the rates on ore from $3.15 to $2 per gross ton." In regard to this rate MT. Irwin quotes General Ashburn as follows: "There was no reason why these rates should have been made, except to stifle the Warrior barge line-it is highly probable that they are not remunerative to the rail roads," And if they are not remunerative to the railroads, then the railroads must look for their profit either in the destruc- tion of the barge service and subsequent compensatory increase in rates, or else they must currently recoup their losses in non-competitive territory or on inter mediate hauls. Some qualifications in the Warrior situation have been, made, but some injustice still stands, not only as regards rates below the probable cost of rail transportation, but also as respects the still unfair division of receipts for joint hauls.
 It appears that there are three factors in the situation which, working together for the welfare of the waterways, may finally win the decisive victory for the public welfare. The first of these, fa- miliar to the people of Alabama, is the Warrior Corporation under the able and intelligent direction of General Ashburn, who has ever shown himself a champion of the barge service. With this active agent alert to every rate threat against the barge lines, and with traffic bureaus jealous of local welfare, there should be no fear that injustice will not be brought to the proper forum or tribunal for ad- justment.
 But there must also be such amend ment of the interstate commerce act as will prevent the defeat of the purpose to keep interested railways from rate cutting, throat-cutting attack upon the barge lines, and the Panama Canal as we'll The second important factor, therefore, in protecting the waterways against unjust attack is the passage of the Gooding bill which would prohibit the Interstate Commerce Commission from giving the railways this rate-making license which the clause they improperly interpret was specifically designed to prevent. The Gooding bill allows excep- tion to the principle that the charge for long haul shall not be less than for an intermediate haul "only in a case where the route via the applicant rail carrier or carriers is longer than via the route of some other rail carrier or carriers be- tween the same points," In other words, the exception is no longer to be the rule. | A third factor, and of great import ance, is that a man from the South eastern territory, with the welfare of this territory at heart, should receive the next appointment to the Interstate Commerce Commission. The Southeast has never truly had representation on this com mission, and therefore MT. Irwin is able to declare that the South suffers more from violation of the intent of the long and short haul clause than any other section of the country. There must be some relation between this situation and the South's failure to be represented on this commission. The extreme West now has three members on this commission, Including Commissioner Campbell, whose term is said to be nearing its close. All though the nation could spare other mem- be1's of the commission better than MT. Campbell, who has a record of success in the public behalf as respects rate ad- justments, yet this appears an opportune time for those interested in Southern commerce to demand that the new com missioner be appointed from the South east. This section of the country is at present a quasi-orphan as far as direct representation goes, for Commissioner McChord of Kentucky is too remote to have that direct concern the far-Southern situation now demands.
 These three factors that may be en- listed in favor of justice to the barge lines are of sufficient potency to defeat