Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-17
INLAND STEEL MEN
HIT RAIL RATE HIKE
Proposed Freight Increase
Branded Discrimination
Favoring u. S. Steel.
Rr the Associated Press.

| BY the Associated Press.
Testimony that increased freight
rates on iron ore would be rank dis
crirnination' In favor of the United
States Steel Corporation and furnaces
on the Great Lakes over inland pro-
ducers. was presented TO the Interstate
| Commerce Commission today by the
Jones e. Laughlin Steel Corporation Of
Pittsburgh.
F.. A. Ogden, representing the Pitts
burgh concern, began the second week
of opposition to higher rates. He teSti-
fed the increase of IS per cent asked
by the railroads would not only dis
criminate between steel companies, but
would hamper" industry generally.
He said the railroad troubles did not
result from low rates, but from a lack
of business and that an advance in
rates would throw more business to the
trucks and other means Of transporta
ton. reduction in rates would be
better for all concerned, he said.
Forecasts Rise In Steel Costs.
Ogden testified that steel plants on
the Great Lakes we're not protesting
the proposed increase because with no
change in the water rate they would
pay only one increase. while the interior
plants would pay two. The lake plants,
it was explained, obtained their ore by
rail and water, while the interior fur
naces get it via rail-water-rail.
The proposed increase, he said, would
mean an addition Of 30 cents a ton
on iron ore from Lake Erie ports to
Pittsburgh and would increase the steel
manufacturing cost OF his company by
40 cents a ton over and above the
added burden on lake furnaces.
Ogden said the selling prices Of iron
and steel products generally we're no
higher now than in 1917, but that
freight rates were about IS per cent
higher These increases, he added.
amounted to more than the interior
furnaces could stand in competition
with the lake furnaces.
Youngstown C. Of C. Protests.
The Youngstown Chamber Of Com
merce, through its traffc manager, J. ".
Mcmahon. opposed higher rates on
coal, iron ore, coke, limestone and dolo-
mite destined for the Youngstown
region. All of these products are used
in the making of steel and. McMahon
said. any increase in raw material rates
would make competition extremely diff
fcult.
He said Youngstown manufacturers
already had trouble meeting competition
from other districts. especially those on
the Ohio River and the Great Lakes.
He said an increase also would affect
the railroads because business likely
would drop of.
Buffalo Industries Opposed.
Representatives of the Buffalo Cham
Der of Commerce and several Buffalo
| industries protested imposition of Is
| per cent increase on top of the new
Eastern class rates which became effec-
tive December 8.
F. NJ. Renshaw Of the Chamber of
| Commerce. said Buffalo industries had
no objection to accepting either the
Eastern class rates or the Is per cent
| increase but that both Of them together
would seriously cripple business and
| create an unreasopably high rate
| level"
| George E. Wiley Of Boston. president
OF the United States Fisheries Associa-
! ton, predicted almost complete diver
| sion to trucks of shipments of sea food
/ IL freight rates are increased.