Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-07-01
FREIGHT
RATES BASED
UPON MILEAGE
Tariffs To Go Into Eff
feet July s Are Re-
suit of Twenty Years
Years of Effort

Elimination Of the piece-meal rate
and the establishment Of rates based
upon the mileage system is the OBJ
~jective Of the new Southwestern
tariffs scheduled to go into effect
July s, and which will effect freight
rates on practically all commodities
shipped out Of or received in the
Lower Rio Grande Valley.
The history Of the fight 10 ecure
rates upon the mileage basis dates
back about twenty years when IL first
became apparent that q ~iece-meal
method. heretofore used securing
adjustments requested By T. ship
ping interests, AID not provide for
that stability upon which a steadily
expanding marAet can depend. The
Southwest took steps 20 secure a per-
manent rate structure that would give
70 each locality the advantage 70
which il was justly entitled by reason
Of its geographic loc-tions.
Many hearings We're held during
the years and Tor one reason or an
other the adjustments that were Sc
cured continued on the piece-meal
method. and did not prove applicable
20 the situation and had a tendency
10 increase rather than diminish the
conglomerated rate structure.
Finally the Oklahoma interests,
through their state regulatory body,
filed a formal complaint with the
Interstate Commerce Commission at
lacking the r-easonableness of the
rates from, to and between stations
in Oklahoma and practically the en-
tire territory east Of the Colorado
New Mexico state line. Following the
action Of the Oklahoma interests it
was manifest that if points in Texas
were TO protect their interests they
would be compelled to file a formal
complaint alleging the sam facts,
and asking for permanent relief from
the EMBELLISHMENTS obtaining under
the present rate structure.
The case was heard before the In
terstate Commerce Commission ord
cred to become effective December 3,
1927, a system Of rate making pri-
marily based upon the use Of a dis
lance scale of rates. This method
makes the rate on a given class or
commodity between any two points in
the Southwest the same as between
ance is the same.
AAASS VI NNGAoNf - lAG 70 tue 1uNl-
mission taking into consideration the
entire rate structure rs affecting the
movement of traffic from, 70 and be-
tween points in the Southwest. rather
than the old fashioned method OF
piece meal adjustment, and places in
10 effect a system Of rate making
once and for all eliminating numer-
Gus discriminatory situations that
were present in the old rate struc-
ture.
For many years from other terri
tories into Texas, rates were made
from a few large groups to the entire
state with a few exceptions, BY the
use Of what is known as an average
rate for the entire state. Under this
system Of rates towns in close prox-
unity TO the producing points we're
sharing the burden Of rates 70 points
Of greater distance; as an example,
the same rate applied to Corpus
Christi, Big Spring and San Antonio.
At the request of carriers and other
interested parties the Commission
granted an extension from December
9th TO February 3rd. then 70 April 3.
and later they issued a supplemental
order emphasizing their desire that
carriers publish the treated rates by
July sth, and give consideration 20
an adjustment that would follow
closely the order of the Interstate
Comerce Commission in the publica-
ton Of rates on the untreated COM
modities, the latter TO be published
and become effective not later than
December s, 1928.
The carriers have published four
tariffs in compliance with the Com
missions supplemental order and IN
less, in the discretion Of the Commits
sion, further postponements are
necessary business interests should
watch carefully the changes to be-
come effective on July Sth, and make
such adjustments as necessary IN the
handling Of their individual affairs.
II is manifest to all that a revision
in rates affecting more than fifty per
rent of the total area Of the United
States. cannot be accomplished with
out both increases and decreases re-
sulting from this leveling process,
bearing in mind that this leveling
process accomplishes that which the
Southwest has been eontending for
many years. namely. a rate structure
that brings inequalities TO a minimum
and puts into effect 8 simpler and
more equitable system Of rate
ing.