Evening star., 1931-06-10
RAILROAD FREIGHT
| RATE PLEA PENDING
Carriers Plan New Move to
Offset Decline in 0per- (.
ating Revenues. !.
BY JOHN r. SINCLAIR.

BY JOHN r. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, June 10-The rail-
roads are making another bid for higher
freight rates. While opinion is divided,
even among railroad executives them.
selves, as to this being good time
for such a move, it is generally held
that these carriers must do something
to protect their credit from the drastic
reduction in net operating incomes.
No definite time has been set, but
hearing before the Interstate Commerce
Commission in the near future Is antic-
ipated in railroad circles. Railroads IN
the West have petitioned Federal
Court for an injunction against the
commission, which recently granted q
lower rate to shippers of grain prod
ucts in an effort to ease the agricui-
tural crisis. These roads claim they
will lose over 10000 900 annually in
year of depressed revenue through the
competition from motor trucking OF
these products.
At a time when the controversy over
the motor truck-railroad issue is grow
ing more intense, 1t may seem strange
to hear that the railroads plan reduced
rates for the shipment OF autos by RAN.
Closer examination reveals that It Is
the same old scrap from different
angle. The drive-away policy. whereby
autos are trucked and trailed direct
from the factory to the market. is just
another dent in railroad freightage. So
the railroads plan to win back the busi-
ness of transporting these future pas
senger competitors by reduction Of rates.
"Store- Door" Delivery.
The railroads have stuck to their guns
In their battle with motor-truck COM
petition. Lately they have had some
success in the way OF rate schedules,
but a different sort of victory has been
won in their new agreement with ship
per8 for store door" delivery Of freight.
The arrangement has been accepted
and approved by the Interstate Com
merce Commission after rejection Of an
earlier plan.
Lack OF fiexibility and mobility as
compared with auto trucks has been
one of the chief handicaps of the rail-
roads in handling freight. Thus, q
motor truck might pick up a load at
the door of a manufacturer. carry 1t
to another city, and discharged 1t at the
door of the consignee. In sending the
same freight by railroad. the best the
shipper could get was transportation
between the two railroad terminals.
This is the situation the new agree
ment is planned to meet. Under 1t,
agency and trucking companies to
guarantee delivery to the door from the
pier or terminal. The regular freight
tariff to the pier will be charged and
10 per cent extra for door delivery.
Although this agreement affects only
railroads terminating in port Of New
York. it Is expected that the roads
having terminals in other large cities
will embark on similar plans.
Wool Futures Exchange.
New York has been given a new
futures market with the opening of the
wool futures exchange, which follows
closely on the heels Of the recently
opened silver futures exchange. Philip
B. Weld, president of the Wool AS
sociates was principal speaker at the
opening ceremonies.
The exchange" Mr.. Weld said, ais
economically sound and its organiza-
tion is complete. and 1t should and
ultimately on a very Large scale"
Trading in the new exchange Is based
on delivery of 5000 pounds of wool
tops, semi-fnished product. The raw
wool was rejected as basis because 1t
Is difficult to grade it to a fineness
necessary in futures dealing. Delivery
must be to warehouses in Boston. and
difIerentials in freight are provided for
deliveries to other points.
While this makes an addition of two
new exchanges to New York's list In
one-since the Jute Exchange was re-
Gently dissolved by mutual consent, due
to lack of trading.
United States Interests in Berlin.
American interests have added Berlin,
third largest city in the world, to its
growing empire Of electrical utility in
vsstmsnts. An international syndicate
was organized recently to take over the
electric light and power system of that
city. Harris. Forbes & Co. and the
J. Henry Schroeder Corporation are
among its financial sponsors.
Berlin, on the edge of bad financial
situation for come time, resolved to sell
the municipality owned and operated
Berlin City Electric Co. The price pad
by the syndicate included $50 600, 900
in cash. and $4,000. 900 concession tax,
besides obligatirg itself for the systems
$4,000 900 indebtedness.
In addition, the city acquired $1,000, III
900 of the new preferred stock of the
corporation and so per cent of the ex-
cess profits. when they msterialize.
Despite the international character Of
the new organization. control of this
utility Is not being wholly lost To Ger
many. The Prussfan Electric Co, own
ed by the State of Prussia, Elektrowerke,
owned by the national government and
German national and state banks are
heavy participators. Il
Nevertheless, this deal Is looked upoa !
as one of the best lsrge-scale inveSt-
ment opportunities for American csptai
in light and rower utilities abroad,
A campaign has besn launched py /
the League of New York Theatets TO
restore national tours of stage produc-
tions which are said to have fallen on !
about 90 per cent since 1920, during
which time the higher railroad rates
went into effect.
Altruistic motives. howeser. were !
carefully avoided by Arthur Hopkins,
famous stage producer and head OF the |
league, in his plea before 20 represent |
atives of various railroads. Mr.. Hop
kins declared that not tonly small towns,
but even large citiesare suffering from
a dearth of stage SHOWS.
The railroad gro0p is considering the !.
petition and willyprobably make q de-
cisicn before th( end of June.
Copyright, 1881 by North american News |
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