The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-21
BLANKET HIKE
IN RAIL RATES
TURNED DOWN
Commission Offers Plan as
Substitute to Help
Raise Revenue.
WAGE CUTS AVERTED
Higher Tariffs on Lumber,
Coal, Oil and Ore Will
Be Allowed.
By United Press

By United Press
WASHINGTON, Oct. 2l.-A plan
Tor stabilizing the critical railroad
situation without recourse to wage
cuts has been advanced as another
OF the efforts by the government to
revive basic industries and restore
confidence to american business.
The interstate commerce commits
sion proposed the plan Tuesday in
rejecting the carriers petition for q
blanket Is per cent rate increase. It
contemplates huge pool of millions
of dollars, accrued through widely
spread but small rate increases for
the benefit of roads in financial dis
tress.
The increases would have scarcely
any effect upon the average citizen.
AS a companion effort to the $780,
100000 national credit corporation,
and proposed improvements in the
real estate and home-building stu
ations, the railroad plan would mar
shall from $100,000,000 to $125, 000,-
600 for another industry weakened
by adverse business conditions and
Vltlated credit.
Averts Wage Cuts
BY making its counter proposal,
the commission was believed to have
averted, for time, at least, any
further speculation regarding wage
reductions for rail workers, such
as fiat denial probably would have
occasioned.
AS the plan was studied today, the
attitude of the majority of rail ex-
ecutives was in doubt. 1t was
learned by the United Press that
President Hoover, working indie
pendently to improve the rail situa-
ton, had suggested a pooling ar
rangement, but had encountered OPP
position from those consulted.
To take advantage Of the COM
missions offer to permit increased
rates on coal, lumber, ores and oil,
the railroads must present their
agreement on or before Dec. l., The
increases would be temporary. ex-
tending only to March 81, 1888.
While the increases would in eff
feet cost every man, woman and
child in the United States about
81. the ordinary citizen probably
would notice no difference to his
pocketbook.
Coal Rate Up
For instance, an increase OF So
a car would be authorized for coal
A pns7fnifsC hOlIf
so tons of coal, so the increase, even
IL passed along entirely to the con-
sumner, would amount to only 6
cents a ton. A man could build a
house with less than $40 additional
cost chargeable to increase freight
charges.
Most agricultural products escaped,
so that the housewife need not be
afraid her grocer will blame higher
freight rates for increased food
prices. Meats will not be affected.
The commission recognized the
plight of the farmer, saying that
"the present prostration of a large
part of agriculture seldom, if ever,
has been equaled in the history of
the country" Describing how it
reached its decision, the commission
said:
1.-The distrust of railroad securities
rapidly is gaining such elements of
panic that slight charge on the
traffic of the industries of the coun-
try best able to stand it justifiably
may be imposed, through freight
rates, to increase confidence and
avert developments which further
might disturb an already ire
mendously shaken financial Situa-
ton and to avoid impairment of an
adequte system of transports :"
Fortunate, Says La Toilette
Capitol comment on the decision
was, for the most part general in
nature. Chairman James CouzenS
of the senate interstate commerce
committee asked to be excused until
today, SO that he nigh study the
report.
Senator La Toilette (Rep., Wis.,
also wanted to read the decision,
but said the denial of the Is per
cent increase was fortunate" Sem
ator Brookhart Rep, Ia rejoiced
that farm rates were not increased.
The report was scholarly
treatise on the entire railroad sit
uation. There was only one dis
sent, that of white-haired Commits
sioner Tate, who fought against
illness all summer to follow the case
Tate was opposed to the pooling
plan and favored fat rejection
with relief through legislation.