Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-23
SHIPPERS PROTEST
FREIGHT RATE RISE
Atlantic Coast Manufacture
erS See Loss of South
west Market.
By the Associated Press.

BY the Associated Press.
NEW YORK, September 22.-Three
witnesses representing scores of shippers
along the Atlantic Seaboard told the
Interstate Commerce Commission To-Day
that proposed new rates would put tnem
out of business in the Southwest.
The first of the witnesses. who testl-
fed at the rehearing into the conSoh-
dated Southwestern cases, was Wllllam
p Moore. secretary-manager of the
Eastern Confectioners' Traffic Bureau,
which represents 80 manufacturers pro-
viding 81 per cent of all the candy
moved in the country. The second was
Milton P. Bauman, traffic manager LOT
Is companies. including the r. b.
Davis Baking Co. of Hoboken, N. j.,
Colgate g. Co. of Jersey City, the New
Jersey Industrial Traffic League ana
the American Druggists Syndicate. He
was followed by F. M. Varah,. repre-
senting the Syracuse, N. Y, CHAMBER
of Commerce.
Sees Candy Market Lost.
Moore said that the present candy
rates from the Atlantic Seaboard via
gulf port lines have been made on
competitive basis with Chicago ana 81.
Louis. but that under the proposed rates
this basis is eliminated and the Atlantic
seaboard will no longer have the adj
vantage of the ocean routes.
"The competition between Eastern
and Midwest manufacturers on less
than-c carload candy and confectionery
has been vigorous and is growing
keener," he said. of the exceptions
and less-carload commodity rates are
eliminated, together with the disad-
vantage in which Eastern manufac.
turers have been placed by reason OF
the proposed rates, producers on tne
Atlantic Seaboard VIII lose IIleH
market"
He furnished tables to show how the
new rates would affect candy shipments
to Texas, Arkansas, Oklahoma and
Louisiana and advocated that the Gull
lines be allowed to establish rates from
the Atlantic seaboard to compete With
other producing territory.
Says Hardships Would Result.
'Bauman, testified that the interests
he represented believed that material
hardships would result if the proposed
rail-ocean-rail rates were permitted to
become effective.
FINDINGS Nos. II and 81 are strongly
objected to by u.s." he said, lin so far
as they pertain to routes including
ocean transportation. Their applica-
ton to water rates will wipe us out of
business.
1.-The history of market development
IN the South and Southwest by Seaboard
manufacturers is conclusive that it has
been foStered by the coaStwiSe lines
and that it originated at the South
Atlantic and Gulf port cities. The
port-to-port rates and the rail and
ocean rates to the destination ports
have permitted Seaboard manufacturers
I'd obtain a foothold in these distant
markets which resulted through in
creased investment in a development
of interior markets in the States of
Texas, Louisiana, and to some extent,
IN Arkansas and Oklahoma.
Our plants and facilities, our agents
and establishments in these markets
have increased to such an extent that
a, continuation of our ability to COM
pete with MidweStern producers is vital
to our existence
Cites Baking Powder Trade.
BY way of illustration, Mr.. Bauman
analysed the new rates as they would
affect shipments of baking powder,
claiming that they would force the r.
B. Baking Powder Co. out of the Dallas
market. He revealed that rs per cent
or the business or the interests ne
represents is moved via the New-Tex
lines, an unregulated competitor of the
Standard Golf lines and supported the
contention of the Standard lines that
they should be left free to meet such
unregulated water competition.
Varah testified that Syracuse ship
pers secured business in the South
western market largely by use of ocean
routes and that if they were to be de-
MED the natural advantage of cheap
water transportation under the pro-
posed rate schedule they would be
forced out of business in that territory
as regards many products.
The hearing will be resumed Monday
at 10 am.