Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-21

Denies Fiat bOOSL ASkcu
He repeated today that he was not
advocating a fiat 10 per cent increase
but felt that the plea of the railroads
should be given sympathetic consider
alton.
CrosS-uueStioning developed that ap-
proXinately one-half of the coal pro-
duced by Widell's concern is sold to the
Louisville e. Nashville Railroad and the
Central of Georgia.
Widell was followed by c. E. Hoch-
stedtler, traffic director OF the Chicago
Association of Commerce, who said the
association was supporting the plea LOT
increased rates with certain reserVa-
tons"
Chairman Brainerd of the Interstate
Commerce Commission said today the
commission would not be Influenced by
threats into granting an immediate
freight rate increase.
Writes Senator Capper.
Brainerd wrote Senator Capper Of
Kansas in response to a telegram from
the Senator urging the commission 10
ignore demands for an immediate IN
crease.
Senator Capper telegraphed the chair
man on reading what he termed a
threat" of Representative Beck OF
Pennsylvania to attempt to have the
commission abolished unless 1t acted
Immediately on the railroads plea.
With reference to the matters to
which you refer" Brainerd wrote, i
am sure you would be warranted in as
Stunning that despite all attempts to in
fluence improperly the commission
Judgment in this or any other matter
it will continue as it has in the past
to render its decisions based upon the
record as made undisturbed by all the
winds that blow"
Capper in his telegram said:
Threat Is Astounding"
"The threat of Congressman Beck of
PENNSYLVANIA to have the Interstate
Commerce Commission abolished unles
it grants, forthwith, without hearing,
Investigation or due consideration, the
demand of the railroads for 10 per
cent horizontal increase in freight rates,
is the most astounding proposal have
heard for some time.
ITO my mind the Beck thHeat is
even more shortsighted and more in
opportune than the application Of the
railroads for this increase in the face
OF the general depression and lowering
of all commodity prices and values and
especially in view of the crisis facing
agriculture and practically every in
dustry at this time.
I'm the first place. I am astonished
Representative Beck is rcputed to be
should wave the threat of COMPRESSION
al action over the heads o. members
of a governmental tribunal created for
the purpose of substituting the rule of
reasonableness for arbitrary action in
the matter of transportation rates.
"AstOunded at Audacity."
"In the second place am astounded
at the audacity of his suggestion that
the Interstate Commerce Commission
which took years of careful study an
investigation before reaching decision
i'll the grain rate case should now cast
all rules to the wind and saddle addi-
tional millions of dollars upon the ship
pers of this country without any study
into the merits of the demand. the
needs Of the railroads or the probable
effect of such action both upon the rail-
roads and upon the country as a whole.
Again 1 would call attention to the
fact that where the railroads assert a
loss of $400,o0000O in annual income
agriculture last year took loss OF
$4,000 100000 in income and this
promises to be even worse.
Gets rs Cents a Bushel.
kansas wheat growers are getting
as little as Is cents bushel for wheat.
The carriers are proposing to charge
25 cents to haul bushel of wheat from
the center of the Kansas wheat belt to
Chicago. They are asking to receive
AZ cents to haul wheat to seaboard-
nearly twice what the farmer received
for planting, harvesting and marketing
his product.
THE price of wheat today is 10 per
cent below the pre-War level; present
freight rates are At per cent above the
pre-war level and the grain rate re-
duction effective August l will not re-
duce that percentage materially. In
the face of this condition the railroads
are asking that their freight rates be
increased to SO per cent above the pre-
war level.
THE railroads have demanded that
the commission increase grain rates to
a level of 80 per cent higher than
the commission recently found was
reasonable level. And now comes a
PENNSYLVANIA Congressman and insists
that tie increases be granted forthwith;
couples that insistence with the threat
of congressional action unless the COM
mission does what he and the railroads
demand merely upon the strength OF
their demand and his threat.
1T is an astounding proposal ana
cannot believe it will receive attention
at the hands of the commission. But
I cannot keep quiet in the face OF such
a statement, one calculated to add to
between the West as represented by
agriculture and the East as represented
bV financial interests in whose behalf
such statements as those credited to
Congressman Beck presumably are
made"
Senator Capper's telegram followed
closely an attack made yesterday by
Senator johnson of California, who
accused Beck of attempting to "coerce"
the Interstate Commerce" Commission.
Refuse Chicago Plea.
The commission refused to accept a
resolution adopted by the Chicago Asso-
citation of Commerce and presented by
Hochstedtler. In addition to supporting
the request of the railroads for higher
freight rates, it urged that serious
consideration should be given to a
proper revision of railway wages"
Hochstedtler said he had heard rail-
way executives express the opinion that
the Is per cent increase would result
in an per cent increase In railroad
revenue In answer to questions, he sale
he did not recall what railroad men mac
expressed that opinion.
He testified that he felt some read
iustment would be necessary if the in
crease asked for were granted and Com
missioner Lewis commented that Il
might be better to lower the raise ASKED
for, adding that lesser increase might
make readjustment less imperative.
Sees Diversion to Water.
Hochstedtler said it was possible the
rates increase might cause some diver
sion of traffic to water, but that In the
case of most railroads in the Mid
western territory, including the Illinois
Central their lines were paralleled onl,
in part by water routes.
He said he favored water transporta'
ton. and believed In the long run thu
railroads would benefit by the increased
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