Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-03
Grain Rate Revision
Uncertain of Effect
BY HARDEN CoLFAx.

The question of who is to be helped
and who is to be hurt as result of the
readjustment of freight rates on grain
ordered by the Interstate Commerce
Commission will be definitely answered
shortly after October /. when the new
rates go into effect That period is
the time when grain shipments are at
their peak and the effect of the new
schedule should soon be apparent
In the meantime. wide diversions of
opinion exist. This extends not only to
the farmers on the one side and rail-
road men on the other. but to the in
dlviGual members OF the commission it
self. These members all agree that
freight rates should be revised. but they
disagree as 10 the effect OF the revision
on the grain rate structure in the
Western district. both for export and
domestic movement. While this change
involves some increases, the general
trend is downward and reductions of
the railroads in revenues under the new
rate level have been vartouSly estimated
at SIS ,ooo, 600 TO $25,0oo. 900.
Practically every member Of the COM
mission wrote q separate opinion re-
garding the rate readjustment, and
tNAy ACN VI tie OplltO4lS AEKtc0. uc
majority of the commission did agree,
however. that the new rate adjustment
would eliminate numerous discrimina-
tons and would permit ready manipu-
fation to correct errors
While the reductions far exceed the
increases" said the report, and the
corresponding revenue effects will be
substantial, the fun effect upon rev.
enueS cannot be adequately foretold, in
view of the limitations upon transit, the
elimination of transit balances out
greater safeguarding of revenues from
wasteful competition that should fol-
low the reduced level of rates.
We are satisfied that the readjuSt-
nlent will not threaten the maintenance
OF an adequate system OF tranSporta-
ton. We say this especially in the
light of increased revenues already
granted in certain other cases. and in
the realization that 3 failure Of the
present revision to afford adequate
revenues win prompt further proceed
ings."
Commissioner Frank McManamy
said; In general, concur with the
conclusions here reached. because I be-
leve they will bring about Q sunstan-
tiai improvement IN the existing grain
rate structure in the Western district.
The rates here established viii afford
q measure of relief to some of the prod
ucts Of agriculture and are not unras
10 the railroads because the record in
this case concluSively shows that wheat
has been bearing more than its share
Of the transportation burden"
Taxing issue with Commissioner Nc
Manauy'S remarks about the railroads
Commissioner Woodlock declared:
MY main dificuity with the report
Is the level OF rates prescribed They
are, in my judgment. far too low They
viii involve q reduction Of at least
$4,000 600 In the revenues of carriers
IN the Western diStrict-perhspS more
and that loss viii fan most heavily
upon carriers in the Southwest and In
the Pacific Northwest, which win de-
rive no benefit whatever from cur re-
vision OF western trunk line class rates.
This is very serious matter
when 1t Is remembered that IN these
districts there are offered but few
opportunities for reecupment Of this
revenue loss from ether sources Of
trafnc.
GO remain lozg in eHscs IN this terri
tuU, ] cannot but fed that they win