Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25
|. c. c. 'THR0TTL|NC'
! SOUTHERN TRADE
Cotton Interests Hold Pro-
posed Freight Charge Hurts
Roads and Shippers.
by WILLIAM KEY.
ATLANTA, September "a (NANA)

ATLANTA, September "a (NANA).
One of the strongest of governmental
agencies, it is charged here. is throtsling
the trade of the South by its arbitrary
power in fixing rates on freight charged
Southern shippers.
Such is the amazing story told in
petition protesting the Interstate Com
merce Commissions proposed revision
of freight charges when literally IS
being thrust on both railroads and
shippers alike In the southeastern
United States. The general tenor of
the protest Is against a proposal to
charge Southeastern shippers rates 80
per cent higher than those of any other
section for the right to ship manufac-
South to possible markets IN the South
west. The Mississippi River is the line
of demarcation.
The effect of such a freight charge
would extend to markets in other sec
tons of the country and would force
the Southeastern States 10 live. indus
trislly, within their own borders.
Independently of any request made
by railroads, the I. C. c. arbitrarily has
cents hundredweight against any
manufactured articles being sent cut
over steam railroads to points west OF
the Mississippi. as well as into Arkan-
sAs and louisiana, Immediately east of
that division line.
Charge Called Excessive.
1t is against this excessive charge
that the American Cotton Manufac-
turerS Association, the North Carolina
Cotton Manufacturers Association Inc,
and the Cotton Manufacturers Associa-
ton of South Carolina are taking Off
ciel exception. The report has just been
filed with the Interstate Commerce
Commission by Carl r. Cunningham Of
Atlanta. traffic manager of the three
organizations. and the next step-ex-
pectcd next week-will be for oral ar
GyFnents for and against the exception.
Although the cotton industry is the
only one in the South to fight the pro-
posed rate revision as an organization.
the rail charge of 80 cents on the dollar
more than in any other section of the
United States affects every phase of
industry in the South, so far as finished
articles are concerned.
Just why the South got the short end
OF the Interstate Commerce Commission
wishbone is not clear to tariff experts.
After years of general, but unorganized,
complaints against excessive freight
idlCS. lIIc SUuIlullSSIOll. OLA yCdlS
ago, decided to delve into the matter.
A general rate hearing was called, dur
ing which shippers of finished products
in all sections of the United States,
through their experts, laid their cases
before the commission.
A general revision of rates was or
dered, effective July IA, 1928. When the
matter settled Gown, Southern manu-
fscturers found, to their dismay. that,
whereas it had cost So "a per hundred
weight to ship finished products certain
distances from Atlanta, it now would
cost $2.44 per hundredweight
Meeting at Memphis
Southern industry complained. No
concerted action was taken. however
Until the midolc of 1880. when repre-
ssntations were made before the Inter-
state Commerce Commission. which
caused that body of II men-8 Repub-
Iicans and 3 Democrats-to call meet
ing before appointed examiners in
Msmrhis, Tenn.
II the CONSERVATION OF Southeastern
manufacturers had been great when the
1928 general revision was put into ef-
feet. it was nothing compared with their
reaction to the recommendations Of
Examiners Koebel and Taylor in the
4f1CHPllo TOl- lllSJcdQ VI
suggesting a downward scale of rates
which would have placed Southeastern
shippers on par with those of other
sections, the examiners have recon-
nended to the commission that States
east of the Mississippi shipping finished
goods to Arkansas. Louisiana. Okla
homa, Texas. Kansas and Southern
Missouri should be taxed additionally.
In other words, where the hundred
weight charge previously had been
raised from S204 to S244 from At
lanta, for instance these examiners
to S2.57.
This recommendation is protested on
the ground that it would cost an At
Anta manufacturer to s257 to ship. by
freight. hundred pounds of finished
tory of the Southwest. while it would
cost a Detroit manufacturer only S244
Comparing this difference with rates
prior to 1923, it is found that while the
Atlanta manufacturers freight rate,
under this proposal IL SO cents a hum
dredweight more Detroits is IS cents
less.
Unanimously the railroads Of the
South are opposed to the proposed re-
vision upward of shipping rates. To
the rail carriers 1t means further
loss In revenue. What is means to the
manufacturer in the Southeast Is that
he must either pay excessive freight
rates to trade outside certain domains
or he must trade within his own back
yard"
tCopyright, 1882. by North American News
paper Alliance. Inc