Evening star., 1931-06-27
RAILROADS APPLY
FOR CUTS IN RATES
!. C. c. Asked to Authorize
Reductions to Meet
Truck Competition.
BY GEORGE E. DoYING.

While the railroads en- masse are at
tempting to secure Is per cent hori-
zontal increase in freight rates, numer-
Gus individual carriers are continuing
to apply to the Interstate Commerce
Commission for permission to make re-
ductions TO meet motor truck competi-
ton, 1t ives learned at the Offices of the
commission.
Requests are being received daily, 1t
was stated, for special authority to re-
duce rates on wide range Of COM
modities effective on less than the 30
day statutory notice.
The applications, coming from all
parts of the country and from railroads
in each of the three representative
groups which are seeking a blanket in
crease, are for lower rates on automo-
b1les, petroleum and its products, sand
and gravel, canned goods, lumber, cot
ton and brick. In practically all cases
the applications have been granted.
Many Protests Received.
In the meantime, protests against the
proposed Is per cent increase continue
to deluge the commission. They come
from individuals, industrial and COM
mercial organizations and several State
regulatory commissions. The Idaho
Public Service Commission has asserted
that the railroads now are making
good money" and that the proposed
freight rate increase would only
amount to additional profit" The Flor
ida Railroad Commission declares the
growers and shippers of that State "are
as hard hit by the depression as are
the carriers of the Nation, and we feel
that some consideration should be given
the plight of the producers and con-
Sumers''
The belief was expressed here today
that the railroads actually do not ex-
pect their present application to be
granted, but that their primary purpose
Is to bring forcibly to the attention of
the I. C. G. the general condition con-
fronting the carriers, in the hope that
ltS erect Will be to stop any further
reductions aside, of course, from those
they themselves seek in their efforts TO
combat the truck lines
While attention is largely focused on
freight rates just now, interest in the
passenger fare situation has been re-
vived by the action of the Interstate
Commerce Commission in authorizing
the st. Louis-San Francisco Railroad
to return on July l to the normal fare
OF 3.6 cents a mile
Frisco Sets Example.
1t was the Frisco line that started an
uproar in the Southwest by reducing
Its coach fare to cents a mile several
months ago. Competing carriers sought
to prevent the reduction on the ground
that their revenues would be decreased
by a greater amount than would be
produced by increased traffic resulting
from the lower fare. They failed in
this move, however, and soon followed
the FTisco's example.
Now, the Frisco has confessed failure
and is about to return TO the standard
fare, but the other lines so far have
shown no disposition to do likewise,
The 2-cent fare, as well as other re-
duced passenger rates, was made effec-
tive in the hope that traffic Supposed
to have been diverted to bus lines might
be regained by the railroads. Although
with the Frisco this result was not ac-
complished apparently other lines are
satisfied with the situation and pre-
sumably are doing enough business
under the 2-cent rate to justify con-
tinuance of the experiment.
Copyright, 193D.