Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-02-24
Against Cutting
500 Surcharge for
Travel in Pullmans

washington, feU. 20 ou'hiiii6
their opposition to the senate bill to
eliminate the so percent surcharge
for travel in Pullman coaches, IS of
the 81 members of the house COM
merce committee joined today in an
adverse report on the proposal. Two
Democratic members = Barley. OF
kentucky, and Parks, Arkansas-an-
nounced they would file minority
views urging enactment of the bill.
Despite the committees recon-
mendation the house will vote on the
question, probably tomorrow, when
it takes UP the conference report on
the independent offices appropriation
bill, which carries a senate rider to
repeal the surcharge.
The report filed today by Chair
man Winslow of the commerce COM
mittee, declared the bill. which was
approved by the senate at the last
session. would initiate direct rate
making by conr"css--a serious a1d
unwise departure from long estab-
lisNe policy"
This precedent" 1t said. would
open the doors for every interest dis
satisfied with any existing rate to
ask congress to take on the interstate
commerce commissions statutory
duty as to rate making.
"The removal of the surcharge
would reduce service rates for those
best able to pay, result in raising
other passenger and freight rates or
postpone reductions in general pas
senger rates, or postpone general re-
auctions in freight rates on agricul-
tural products. including livestock.
and other articles and would interfere
with and retard the general survey
and adjustment where possible of
freight rates as directed by the Hoch-
Smith resolution recently enacted"
The report said that -undisputed
testimony showed that railroads in
1928 received about $37,000,000 from
the surclarge.
Assuming that carriers can stand
a revenue reduction of S37 ,090.000' it
continued. there is no reason why
the entire reduction should be made
for the benefit of Pullman travellers.
If a cut in revenue of $37, 900, 900 can
not fairly be made and neverless the.
removal of the surcharge as such is
desirable, other% sources of income
must be determined. No suggestions
were made as to what rates should
ne illCItdoSu III iicu VI Sul ClioI Sc re-
turns.
about SIS 900 900 Of the $4,000 600
goes to railroads earning a total Of
less than five percent on their book
value investment. A large part of
the $5,0S9,564 which accrues as sur
charges to railroads earning five per-
cent or more, goes to carriers which
would earn less than five percent il
the surcharge were removed. Only
$S,621 900 goes to railroads earning
more than six percent. The earn
ingS Of certain important railroads
earning less than five percent would
be depleted to an emhara Ssiuy extent
if their surcharGe incomes were taken
away"
New York, Feb. 23-Five trans
Atlantic liners, with approxirnate.y
the lower harbor for several hours
today by a dense fog which overhung
the harbor and city and which af-
fected water traffic generally. Among
the vessels which had to anchor off
Sandy Hook to await clear weather
before they could proceed up the
! river to their piers We're the Cum
| arder Carmania. from Liverpool; the
! Fort Victoria from Bermuda; the
| Pastores, from South and Central
| American ports, and the Minnctonka
! from London. The Camaronia, also
| of the Cunard Line, arrived in Quar-
throughout the morning.