Evening star., 1931-12-11
DROP IN RAILROAD
FREIGHT ANALYZED
j. c. c. Testimony Reveals
Extent of Loss to Truck
Competitors.
Special Dispatch to The star.


NEW YORK, December 11.-Blaming
khe general business depression for
Sheir shrunken revenues, American
railroads have sought to solve their
present financial problems by increas-
ing income and decreasing expendi-
tures. In asking the Interstate Com
merce Commission for higher freight
rates, the carriers rested their plea
solely on a general revenue or financial
showing.
The Interstate Commerce Commits
Gion, after hearing voluminous testi-
nlony on a plea for a is per cent rise
In freight rates, was most impressed by
the development of competition for the
traffic of the country and in its annual
report, issued yesterday, the commission
declared that "the competition of mo-
cor trucks presents the most serious
problem for railroad executives"
o. Loree's Statement.
Exemplifying the attitude of the rail-
ro3d, l.. F. Lcree, president of the
Delaware & Hudson, estimated that the
steam carriers hauled 89.5 per cent of
thn Nations commercial freight during
1928 and that about l9 per cent was
h2ndled by motor trucks.
DR. Julius H. Parmelee, director Of
the Bureau Of Railway Economics, il
an attempt to show that the railroads
would not lose to competitors sufficient
traffic to offset financially the proposed
is per cent freight rate increase, stated
that motor trucks in 1880 carried about
4 per cent Of the Nations total COM
mercial freight,
The growth in motor transportation
between 1929 and 1880 was caused by
the increase in paved highway mileage;
Coy lowered prices of commodities.
which localized marketing to a great
aextent; and by the decline in the cost
of labor, gasoline and tires.
out of the testimony before the In
terstate Commerce Commission these
facts emerged
~ Motor trucks now handle most of
tha less-than- carload freight that moves
less than 100 miles from the large dis
tributing centers Of the United States.
90, Textiles are tTucked from Utica,
N. Y, and from mills in Virginia and
North Carolina to New York City.
New automobiles. to the number Of
four or five, are now moved in specially
designed trucks for long distances in
every section Of the United States.
Coal Movement.
"The truck movements Of sand, gravel
and crushed stone from pits near the
point of consumption, particularly to
destinations within 80 miles, have almost
eliminated the rail hauls Of these COM
m0ditieS in many sections of the country. |
As There is truck movement of about
100000 tons of coal annually from mines
In Pennsylvania to destinations within
o radius of so miles of the mines.
<. Trucks handled 70 per cent of the
rfF OF
York City from the principal producing
areas in 1928"
Down around West street and the
fruit markets Of this city generally, |
dealers said they would not be sur
-prised If most Of the present Florida
DoitruS crop were trucked out of that
State. During the l930-31 season, the
Washington testimony brought out, the
equivalent of 1850 carloads Of citrus
fruit moved from Florida by truck.
There were 1896 carloads handled by
rail"
% Most Of the 1880 Maryland peach
crop was moved entirely by truck One
company handled lao ,583 crates of
Strawberries from the Delmarva PENN
Sula this year, trucking them to large
Eastern cities, and only $1,000 crates, or
26 per cent, moved by rail.
Around Chicago, trucks are handling |
Hu increasing amount OF i've poultry
1876 carloads in July, 1881, while freight |
cars handled 60 carloads.
It Is estimated by the I. c. c. that |
san investment Of S1,2O0, 900 In trucks |
would save the canned milk industry |
over S1,000,000 annually under the pres
ent rail costs and would cause a loss |
of revenue to the railroads Of over
$1,000 900 annually"
Cotton Hauling.
p OF the 1000 000-bale cotton crop of |
Texas in 1880, 100000 bales were |
moved TO the ports by truck One COM ,
mon carrier operator during the year |
ended June 30, 1881, handled more than |
100000 bales of cotton and showed |
net profit Of SI7,646, after charging off |
3313 per cent for depreciation and
taxes
In turning down the request for a |
blanket increase of is per cent in |
freight rates, the !. c. C.. commented:
Without exaggerating the menace of |
this form Of competition (trucks), we !
are convinced that the carriers have
underrated it and that its possibilities i
are materially greater than they are
prepared to concede."