Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-02-12
|. c. c. PLANS PROBE
OF FORD RAILROAD
Rates and Right of Auto King
to Own Line Among Is
sues at Stake.
BY j. C. ROYLE.

Special Dispatch to The star.
NEW YORK, February 12.-Lead-
ers in a score of industries are await
ing with interest the result of the
investigation by the Interstate Com
merce Commission into the affairs of
the Detroit, Toledo and Ironton Rail
road. owned by Henry Ford. They
see in the case possibilities which
may lead, to the sponsoring Of legis-
lation which will change the regu-
lations affecting common carriers.
Railroad men connected with other
roads, notably in the East, say they
think it inequitable that while a rail-
road cannot own an industry, an in
dustry should be allowed to own a
railroad. They point out that the
anthracite carriers, such as the Read
ing and the Delaware, Lackawanna
and Western We're compelled to dis
sociate themselves from the business
of mining coal. whereas Ford, pro-
ducing almost half of all the auto
mobiles made in the United States, is
not restricted from owning and OPP
Grating a railroad.
Plans Rate Probe.
The Interstate Commerce Commits
sion probe calls for an inquiry OF di-
visions Of freight rates in the East
ern group of roads for the purpose
of determining whether the divisions
of said rates or charges are unduly
preferential or prejudicial as between
or among the respondent carriers
named" The order further states
that the investigation is undertaken
with a view to prescribing just divi-
sions If the present ones are found
inequitable.
A large number of roads are listed
q n n n
troit, Toledo and Ironton, but II was
learned here today that Commissioner
Potter will confine the preliminary
part of the investigation to four
roads besides the D.. T. and l for the
present. These are the Chesapeake
and Ohio, the Norfolk and Western,
the Nirginian and Richmond.s Fred
erfcks burg and Potomac. 1t is in
ferred from this that these carriers
have been obtaining large share of
the Ford business.
Routing Freight nj Issue.
The inquiry is expected to bring
out many interesting facts on the
routing of freight via the D.. T. & i.
1t is question whether the Inter
state Commerce Commission would
have. power to alter such routings,
but the investigation. it is anticipat-
ed. will show how business is gotten
for the Ford road, and serve to prove
or disprove charges made that Ford,
as large manufacturer. uses his au-
tomobile shipments to bring pressure
to get freight for the D., T. d l.
Interest has been added TO these
questions by the fiolres on earnings
for 1924 just made public. The re-
port shows a total income of 1885,
75s. and net operating income over
q
collected revenue of s2,414S59 for the
year In 1920 Ford paid 81 a share
for the preferred stock of the road.
81 share for the common stock and
so cents on the dollar for the bonds, a
total investment of about 100000
In the last two years the net income
from the road has been $4,2O1,sSS.
Ford's Amazing Record.
When Mr.. Ford took over the prop
erty three and a half years ago the
line had gross income of less than
100000 a year and was not making
money. The employees of the road
have been allowed to become stock
holders and the D., T. & !. certifi-
Gates held by them are now paying
IL per cent a year.
Alteration of the present law would
be necessary before any action could
be taken with regard to the owner
ship OF the D., T. & l. by Ford. As
it now stands the statute provides
merely against ownership by a rail
road of commodity REPRODUCING sources
where all or part of the product is to
be carried in interstate commerce
by the road. There is. however,
provision specifically excepting lum-
Der and the manufactured products
thereof
All the Interstate Commerce Com,
mission can do is order an adjustment
of rates for haulage in inter-road
shipments If the divisions are found
inequitable. But the proceedings may
determine whether other manufac-
turers will attempt to follow the Ford
lead or whether the carriers will
sponsor new regulation.