The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-10-15
SEEKING RATE FAIRNESS.

seeking to establish for Southern ports
an ocean rate parity with North Atlantic
ports on transatlantic cargoes. This eff
fort is being resisted by representatives
of North Atlantic steamship companies
The opposition cites that such a parity
would be unfair because the North At
lantic ports are so much nearer Europe
than the Gulf ports are. To be sure they
are, but such arguments sound strange
from the lips of spokesman for North At
lantic ports, for those more distant ports
enjoy rate PARTIES with Gulf ports on
shipments to the West Indies, Central
America and through the Panama Canal
Nor is this all, for North Atlantic ports
also enjoy rail rate parity with South
ern ports on shipments originating in
competitive territory, even in localities
much nearer Southern than Eastern
ports. Thus if the item of distance is
allowed as valid basis of rate adjust
ment, as the Eastern ports in this case
aver, then it should be applied through
out, on land and sea. Then the Eastern
ports would have to suffer a re-adjust-
ment of rail rates to seaboard that would
deprive them of much of their present
PARTIES and favorable differentials. The
Eastern ports would also have to sur
render their PARTIES on shipments to the
West Indies, Central America, Mexico
and those Pacific ports reached through
the Panama Canal, for they are all near
er the Southern than the Eastern ports.
It is a poor rule that works only one
way.
With the present rate structure there
is a marked preferential for exports
through New York and neighborinc ports.
This is not only mileage and time bur-
den upon the East and West railways,
but it tends to congestion at few ia
vored ports, while other ports are not
utilized to capacity. This is an extrava-
CANT, inefficient, unfair and costly poll
cy. 1t has been built up for the benefit
of a few railroad and steamship COM
panies, giving them an unjust advantage
over competitors and rendering distinct
disservice to the producers and shippers
of an immense region. In the name of
domestic economy and the public serv-
ice the custom must be broken up.
To show how unfairly discriminatory
New York's southbound PARTIES are, the
Manufacturers Record of March 81 says:
GAS to freight for Cuba, the West Indies,
South America, ETC., the rates from New
York to Havana are the same as from
Jacksonville and other South Atlantic
ports, although the distance from Jack
sonville to Havana is 55 per cent. less
than the distance from New York to
Havana. Similarly the rates from New
York and Mobile to Havana are the same,
although Mobile is So per cent. nearer to
Havana. Mobile is also 80 per cent.
nearer to the Panama Canal than is New
York, although rates via the canal are
the same from both ports. Rates from
New Orleans to Liverpool are Is cents
per hundred pounds higher than from
New York, but the rate on cotton from
New Orleans to Liverpool is 20 cents a
hundred pounds higher than from New
York Besides, rates from New York
and New Orleans to Vera Cruz are
the same, although New Orleans is go
per cent. nearer than New York to Vera
Cruz" One might cite scores of similar
examples of PARTIES enjoyed by New
York when the distance to foreign port
is greater than from other American
ports, and likewise scores of preferentials
enjoyed by New York when she is nearer
than other American ports to the foreign
port.
Yet when it is sought to gain for
Southern ports rate PARTIES with Eastern
ports on exports to Europe, the protest
is made that the proposal is unfair be-
cause Eastern ports are nearer Europe
than Southern ports are. 1t all goes to
show that New York and nearby ports
have enjoyed rate favoritism for SO long
they regard them as inalienable. Other
ports, however, protest the practice, and
they have all the argument on their side,
not only as regards justice to the other
ports, but also as regards economy for
shipping and producing centers. Why
should the rate on goods from New Or,
leans to Europe be Is cents hundred
higher than from New York, but on cot
ton 20 cents a hundred higher? Simply
because New Orleans is more logical
port for cotton than New York and SO q
higher preferential is arbitrarily estab-
lished to force through New York cottor
that would otherwise go through New
Orleans or some other Gulf port.
If the Gulf ports were given a parity
with New York on cotton shipments tc
Europe, the Gulf ports would get the
bulk of this business. 1t is high time
that this situation be remedicd, and thai
rate structures designed joi,.tly by Eas
and West railroads and foreign steam
ship lines to establish their own strangle