The Birmingham age-herald., 1924-10-20
Forum or The People
Mir. Mauother On Rail Rates.
. Editnr of The Age-Herald:

MT. MapOther On Rail Rates. To the Editor of The Age-Herald:
 My attention has recently been drawn to an editorial in your issue of September 16, entitled, "Burdensome Freight Rates"
 The article contains certain statements that are obviously in error, and consequent- ly calculated to mislead your readers who ln- cidentally are patrons of the railroads of the South: and feeling confident that you would be quite willing to correct the erroneous ln- formation that has been furnished you so that justice might prevail, am taking the liberty of providing you with the facts.
 The railway managers of the South un- doubtedly concur in your idea that there is need for a readjustment in the existing rate schedule. In fact, they have been working continually for the past three years on plans designated to effect a readjustment which will result in a general equality of rates, both interstate and intgastate, within the whole of that portion of the territory east of the Mississippi river and south of the Ohio and Potomac rivers A portion of the work nec- essary has been accomplished and is in effect either under direct orders or with the sanc- tion of the Interstate Commerce Commission. refer to the territory adjacent to the MS sissippi river in West Tennessee, Mississippi and Louisiana where by far the most impor-
 
 feet
 Acting jointly with representatives of ship ping interests, the carriers appealed to the Interstate Commerce Commission to investiz gate the rates east of this Mississippi Valley section, and the class rate structure recOm- mended by the carriers has been submitted to the commission in I. c. 0. Docket 13,494. The carrier proposal was concurred in by part of the shipping public but not agreed to, in- solar as the measure of the rates was con- cerned,, by other groups. But, in this pro- posa1, insofar as I can determine, the rela- tionship of one shipping point as compared to another, and one receiving point as com pared to a competitor, is, broadly, acceptable to the public Stated in another way: While the general level or measure of the class rates themselves has not been universally agreed upon, all are united in the belief that whatever the Federal Commission sets as the measure, the discrimination which you speak of will be done away with. Before the end of the year we may expect l believe, decision from the commission.
 A vast amount of work has been done in connection with the proposed readjustments in commodity rates. Numerous conferences have been held with the shippers, with the view to harmonizing differences, and some of the revised rates have been put into opera
  tion that the editorial refers to has been re- moved, and may say that work is progress ing satisfactorily toward completing the task of other commodity rate adjustments.
 In this effort to produce equality of rates throughout the South, the carriers, of course, need the cooperation of the several state commissions. At the present time, there are numerous rates that apply intrastate which discriminate against interstate traffic, but we have no doubt that, as the work progresses, we will have the cooperation of the state authorities in removing such discrimination.
 Part and parcel of this readjustment within the territory is that dealing with traffic mov- ing therefrom to the territory north of the Ohio and Potomac rivers as well as in the reverse direction. Here the carriers pro- posals particularly as concerns the central West and the interior Eastern sections, con- template not merely capitalized rates but very material reductions under those now, in effect.
 When this tremendous task shall have been completed, those cases of discrimination referred to in the bulletin of the Intermediate Rate Association, quoted by you, will have disappeared, insofar as the territory north and east of the Mississippi river is concerned. And, as you will perceive, the second quota tion from the bulletin referring to Rates on
 
 nate against the interior cities Gnd towns of the South" is totally in error, for the pro posals of the carriers are to do away. with all contraventions of the long and short haul law, even where they now have relief there from.
 Again, I fear you have a wrong under standing of the so-called Meridian case. The decision of the Federal Commission in this matter did not result in a discrimination against Alabama, but was directed to re- moval of determinations that existed in favor of Alabama-that is, in this decision (6O I. c. c. 3 the commission decreed that cer- tain class and commodity scales should be established between Meridian and points in Alabama not more than POO miles distant on the lines of certain railroads, to accord with the rates charged between Mobile, Selma, Montgomery Birmingham, Demopolis, Tus- caloosa and points in Alabama within 200 mile radius of Meridian. The Louisville & Nashville was not immediately concerned in the decision, but it is my understanding that the railroads involved have produced an equality between all of these cities, insofar as their competition in common territory is con- cerned.
 You refer to the carriers keeping the rates within the interior high, with the view of making the public pay flor the railroad war fare on coastwise competition" At present the principal interstate rates to and from South Atlantic ports are subnormal, but are within the bounds that were set some years ago by the federal commission. A number of the principal pivotal rates to the interior, on the other hand, have been attacked, based on their merits irrespective of the depressed rates at the ports, and have been ajudicated by the commission. At the moment, there fore, the main part of the interstate rate fabric has the express approval of the fed eral body. But the federal commission would never permit the carriers to maintain exees- sively low rates to and from competitive wa