The Omaha morning bee., 1924-12-21
Canal Shipping
Rate Regulation
Seems Only Just
Appeal of Railroads in Long
Haul Rates Should Be
Favorably Acted
Upon.
ARTICLE VIII.


A~-S AADOASs 1AoAopOlLo Ia
tion of men, messages and
materials has welded us all
into one great community.
We have been discussing now
for several days the effect of
transportation upon this mid
dlewestern country of ours.
In the days of Theodore
Roosevelt, led by his great
enthusiasm, we all Joined in
a mighty shout for the build
ing of the Panama canal. For
years we have dug into our
pockets for the money to pay
for that job-the waterway
that connects the two oceans
and cuts the steamship dis
tance between New York and
San Francisco by many days
and many miles.
We are as proud of that canal to-
day as we have ever been, but there
are some things about its use that
are beginning to cause us uneasiness.
Millions of tons of the materials of
commerce that once moved over the
railroads from coast to coast now
move by way of the canal.
The revenue that once went to the
railroads now goes to the steamship
companies. AS this revenue to the
railroads, has been cut down, the
rates between interior points have
been increased.
Hope for Rate Cut.
II the present appeal of the rail-
roads for the right to make certain
long haul rates is granted, there is
hope that our interior rates will not
be again increa eased-it may be that in
a readjustment of rates many of
them can he reduced. If the Gooding
amendment is passed 1t is certain
that the middle west will have to
continue to carry the burden of high
rates-it may be that the rates will
have to be increased. The movement
of commerce from coast to coast af-
fects both the rates and the indus
tries of the middlewest, whether that
commerce is carried by rail or in
ocean ships. 1t is all one transaction.
The ocean rates for coastwise ship
ping and the
Canal Should Be Regulated.
Panama canal rates are a part of
the rate structure of American com.
merce. They should be regulated and
controlled by the same body that con-
trolls railroad rates. If cheap long
haul rates are wrong on the rail-
roads, they are wrong through the
canal.
Our interests in the middle west
demand that the railroads be per-
mitted to put into effect low long
haul rates. or that the ocean shipping
interests be compelled to increase
their rates to something like a parity
with rail rates. If this is not done
our industries will languish and we
will need to carry an ever heavier
load Of transportation charges.
Roads Ask Opportunity.
The western railroads that have
DbcItu oul HUH Siiitd5O " Ahc %@
souri, river. and from the Missouri
river toward the setting sun, are ask
ing that they have an opportunity to
reap where they have sown. Let us
remember that the railroads cannot
prosper il the people are poor. In this
instance their fight is the fight OF
the people of the middle west.
The adoption of the Gooding
amendment to Section " of the in
tcrstate commerce act would be a
lody blow to the western railroads,
+ end that means a body blow to west
crn development. The foregoing
articles in this series have sought
to set up the real facts as they ex-
ist. not as the propagandist of coast
industries and coast shipping inter
csts would have us believe them to
be. A recapitulation, as briefly as 1t
can be made, will close the series.
Section " of the interstate conf
merce act prohibits a lower charge
for a long haul than for a short haul,
the shorter haul being included in
the longer. The Interstate Commerce
commission Is empowered to make
exceptions to this ruling after proper
showing by the interested rail car
riers. This section and its exceptions
were enacted into law before the
Panama canal was opened for traffic.
The application Of the railroads Is
based upon the fact that the inter
mediate points are not beneficially
affected by water borne traffic rates.
while under present conditions the
railroads are barred from bidding for
transcontinental traffic that goes at
low rates from coast to coast by
water Coast industries are opposing
the application for the reason that
they are naturally anxious to hold on
to the low water rates that have
made the coast sections so prosperous
in recent years.
Isaszbound traffic by rail would be
stimulated under the permission
sought by the railroads, but not near.
" 20 much ~ westbound traffic. The
railroads base their application for
permission to make special through
rates on some 10 commodities on the
elf-evident fact that they would
make q profit at the lower rate be-
| cause It would I'LL cars bound west
| ward that now return empty. In
. short, the railroads arc asking an op