The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-05-22
CITY LEADERS
OPPOSE RAIL
Rate BOOSTS
Transportation Lines viii
Be Harmed, Instead of
Helped, They Say.
NOT THE PROPER TONIC
Reduction Would Be Better,
Opinion of Coal Club
Vice Chairman.


Proposal of the nations railroads
for a 10 to IS per cent freight rate
increase, and their claim that such
q boost may start national economy
recovery, today was engaging the
serious thought of manufacturers,
business men and farm and labor
groups throughout Indiana.
That freight rate increases are
not the proper tonic for business
depression was the view of four In
olanapolls executives in nanufac-
turing, farm, and retail coal pur-
suits, who were among the first in
terviewed by The Times in its effort
to sound sentiment on the railroads
proposal.
Deluse Is Opposed
Otto P. Deluse, president Western
Furniture Company, former presi-
dent Indianapolis Board of Trade,
declares that railroads still are
the main arteries Of commerce and
trade, and that, concededly, rates
should be ample to provide efficient
service and q reasonable return to
the owners.
But I doubt the wisdom of a
railway transportation at this time, -
says Deluse, because it will defeat
the very purpose for which the in
crease is demanded, by further de-
flectiag tonnage, in large volume,
to other forms of transportation.
Furthermore, there has been no
material decrease in freight rates
for many years, while the prices OF
raw material and commodities have
shruak to lowest levels. Excessive
freight charges stif1e competition
and handicap business. Tonnage
and not Increased rates is what the
railroads need.
The roads now are receiving an
unfair portion Of the purchasing
dollar. For example, some Indiana
coal, selling for $1.30 a ton and less,
costs $1.13 q ton freight; grain
from Illinois selling for Is cents a
bushel by the producer carries a
freight charge Of a cents to sea-
board, and certain grades of south
ern lumber selling for SIG thou
sand feet pay $12 freight to north
ern points.
"Equalized rates and revision
downward will stimulate sales and
production and bring tonnage. The
recent return to large-scale passen-
ger excursions, evidently profitable,
is evidence Of that logic"
Get Out the Water
Lewis Taylor, vice-president Of
the Indiana Farm Bureau Fedora
ton and head of it's tax and 1egis-
lative department., says that every
one will grant that the railroads
are entitled to adequate revenue,
adequate maintenance, adequate
wages, but when they ask for ade-
quate return on their investment
that's something else.
What do they call an adequate
return on investment'?" he asks.
IF there's imitation in the return
on investment hadn't they better
cut that down? If there's water
in it, ought they not shake it out?
The railroads always look to the
government to give them something,
apparently forgetting the large land
grants and subsidies given them
years ago, which they sold as town
sites and pocketed the money. In
creased freight rates on grain would
mean conflscation of wheat, corn
and oats. The farmer has enough
burdens already.
isn't the lack of something to
haul what's wrong with railroads,
instead Of freight rates?"
Reduce Rates, His View
Z. F. Shuttleworth, Indianapolis,
Wce-cllairman Of Retail Coal Mer-
chants Of Indiana, believes the rail-
roads should reduce rates instead
OF increasing them.
Eat present, - per cent Of the
delivered cost Of Virginia lump coal
in indianapolis is represented by
freight charges" he says. Goal
that sells at Sc a ton in this city
had a freight charge Of 1882 a ton.
In fact, the freight charge on. coal
is &c per cent greater than the cost
at the mine.
Increased rates on coal would
add Is cents q ton cost to the con-
sumner. Our organization, I'm sure,
will be opposed. to any increased
rate"
John c. Muesing, president of
the Retail Coal Club. Inc, of In
dianapolis-It's unjust to the coal
dealer and the consumer for freight
rates to be increased. A reduction
in rates would be more in keeping
with the times and conditions than
an increase. The Indianapolis Coal
Club will take a stand against the
proposal, Tine sure.