Evening star., 1931-06-25
ROADS TELL |. c. c.
ALL FREIGHT RATES
WOULD Be RAISED
Adjustments to Preserve
DifferentialS Necessary,
Resolution Declares.
By the Associated Press.

By the Associated Press.
The Nations railroads replied to the
Interstate Commerce Commissions re-
quest for added information on the
proposed Is per cent freight rate in
crease today with a resolution stating
that the carriers were prepared to make
effective increases on all existing freight
rates.
The commission had asked whether
the railroads proposed to make SPECIFIC
exceptions to the general rate increase
or sought to raise the entire list.
The reply to the I. C. c. query was
adopted at a meeting of railway ex-
ecutives in Chicago yesterday and was
filed with the commission today, signed
by J. J. Pelley, chairman of the special
committee of presidents representing
the Eastern group; H. A. Scandrett,
chairman Of the special committee of
presidents representing the Western
and Mountaineering groups, and w.
r. Cole, chairman of the special COM
mittee of presidents representing the
Southern group.
Prepared for Increases.
The resolution informed the commits
sion that 'all steam railroads in the
United States are prepared, If the au-
thority sought in the application is
granted, to make effective increases of
all existing freight rates and charges
with such adjustments in the
case of coal, coke and certain other
commodities as will preserve existing
differentials."
1T is not proposed to make any
specific exceptions on any commodl-
ties" read the resolution, land the car
riers are prepared to make increases Of
the measure proposed in all existing
rates on grain and grain products,
cotton, other agricultural and horticul-
tural products, including live stock,
non-ferrous metals, iron and steel prod
uctS, petroleum and its products, lum-
ber and automobiles and in all existing
class rates."
In reply to specific questions of the
commission, the carriers stated that it
was proposed to increase by is per
cent all international rates and charges,
and that the application for the IN
crease was rendered with the concur
renee of the water lines participating
in rail and water rates"
Readjustments Required.
Experience has shown" said the
resolution, that where any general
change in the entire rate structure of
the country is authorized and becomes
effective, it has subsequently been
found to be necessary to make changes
and readjustmentS, in some instances
reductions, to meet competition and
other situations.
such changes, where found neces-
sary, will be made as promptly as pos
sible after the proposed increased rates,
If approved by the commission, become
effective"
Referring to the original petition ask
ing the rate increase, filed June II. the
carriers said they were confronted
with an emergency threatening serious
impairment of their financial resources
and their capacity to assure the public
a continuance Of efficient and adequate
service"
''In emergencies of this character, "
said the resolution, previous experience
has shown that there is but one method
which has been adopted, or as prac-
tical matter could be adopted, either
by the carriers or the commission to at-
ford the necessary relief, namely, per-
centage method"
The resolution was an answer to the
commissions order of June 10, in which
the roads were instructed to file within
is days statement giving added intor-
nation on the petition.