Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-06-17
HEADS TO
OPPOSE FIGHT
ON new RATES
Reductions to Go Into
Effect July s, Will
Cut Truck Freight
Rate 30 Per Cent

Railroads operating In southwest
ern territory will oppose any effort
to suspend the new rates which are
scheduled 70 20 into effect July 8,
according TO announcement by Of
ficials Of all lines interested.
simultaneously with this announce
ment the railroads operating in the
Lower Rio Grande Valley declared
they would maintain the citrus fruit
rates. which have been increased APP
proximately 90 per cent in the new
tariff, on a competitive basis with
Florida. Under the rules Of the in
terstate m commission they
are permitted TO do this where they
can show that il is necessary to the
areas they serve.
According TO information from
Washington the 90 per cent increase
will stand, but in the event IL does,
the citrus rates from Florida and
California will be increased proper
tionately.
Rate men who have made q care
full analysis of the new tariffs state
that the reduction in vegetable rates
for the Lower Rio Grande Valley will
be approximately 80 per cent, the
heavier reductions coming on ship
ments into the southeastern and east
ern territories. The tariff establish
es a straight minimum of $4,000
pounds on all classes Of vegetables
into all territories, and this feature,
together with the reduction will
throw southeastern territory, now
supplied with winter vegetables al
most exclusively BY Florida. wide
open to Valley shipments. This has
resulted in Florida and the railroads
serving southeastern territory enter
ing a vigorous protest against the
new southwestern rates, and they are
exerting every possible effort TO Sc.
cure a suspension.
The Valley the past season market.
ed approximately 1900 cars of vege.
tables in southeastern territory de.
spite the handicap Of excessive
freight rates and Florida competi-
ton. and it is conservatively esti,
mated that under the new rates the
C~arolinas, Virginia and parts o.
Georgia and Alabama will Offer
markets for approximately 5000 IL
5000 cars next season There was
a heavy demand for Valley vegeta.
bles in that territory the past sea,
son, but the handicap Of the high
freight rate held shipments down Il
the minimum.
IL Is understood that az a recent
conference OF officials representing
the Southwest railways IL was decid
ed that the new rates should b,
given a fair trial and to file no pro
test with the commission until IN,
effect of the new tariffs has beer
clearly ~ascertained. Efforts are nov
being made to work out rev rate.
with the southeastern roads upon ;
basis which will assure a fair di
vision of the rates upon a miIeag,
basis, but this IL not expected Il
rs accomplished before the new tar
ifs become effective on July s.
The new tariffs apply to onI,
thirty commodities, and the commits
sion has ordered new rates upon nj
commodities be worked out within
year upon a mileage basis. Som,
classes Of building material, cloth
ing, glassware and other m~erchandis,
have been increased, the decrease ap
plying principally to agriculture
products.
The new rates have been establish
ed by the interstate com
mission after two years of investiga
tlonr under the Hoke-Smith resolu
ton, passed BY congress five year.
ago, directing the commission 20 pu
into effect railroad freight rates .,
farm products at the lowest leve
compatible with maintenance of ade
quate transportation. As this reso
luton does not repeal that part O
the transportation act directing IN,
commission TO fix rates that vii
give the carriers reasonable return
on their investments, the commits
sion was obligated to increase rate
on other commodities TO offset In,
loss Of revenue that will result from
the reduction on farm products.
Southwestern rail officials asser
that under the new rates they will
sustain some loss OF revenue. a.
they serve an agricultural section
but this may be offset, they state, y,
increased volume of business ~
direct result Of the lower rates an,
q greater demand for Southwestern
products.
s1-YEAR-OLD STROUD
WINDSOR. Eng-Miss Susanna
| BARLOW was ~igannofrte ~ ~