Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-11-11
AUTUMN FREIGHT
IMPROVES WITH
CROP MOVEMENT
Greater Stimulation to Bust
ness Seen in Rail As
ISOLATION Report.
|. C. C. TO BE REQUESTED
TO CONTINUE RATES
Schedule Due to Expire Next March
Discussed at Meeting in
New York.

Freight traffic this Fall has improved
as compared with earlier months. due
to the movement in crops and fuel, to-
gether with some greater stimulation
in business activity, it was shown to-
day in report presented to the Am
erican Railway Association, meeting in
New York.
This meeting followed a session yes
terday of the Association of Railway
Executives, which deals with questions
OF policy. at which it was decided to
ask the Interstate Commerce Commits
sion to continue in effect emergency
freight rate increases granted a year
ago but to do away with the plan under
which these are pooled for loans TO
needy carriers. This rate schedule is
due to expire March 81, next
Presented by Chairman.
The traffic report came from the car
service division of the association and
was presented by M ]. German, chair
man.
Beginning with the week ended on
August 6, when 496.033 cars were loaded
with revenue freight, there was a
steady increase up to the week ended
on october Is, when 650,578 cars were
loaded" the report said This was an
increase of 81 2 per cent, compared with
the week Of August 6. In 1881. for the
same period. there was an increase of
only SO per cent. and in 1880, an in
crease of only SO per cent. For the
same period in 1921. the increase was
22.7 per cent. These comparisons show
there has been greater percentage of
increase for this period in 1882 than
ordinarily occurred in previous years.
no Tf hn ilfT+@.y
executives that continuation of the
emergency freight rates would be sought
made no mention of the proposal to do
away with the loan plan. but reports
from New York were that this was
contemplated
These rates, which were imposed on
selected commodities. have been produc-
ing around S5000,000 a month, or about
so pei cent of what they were expected
to yield when put into effect January
?. last, after the Interstate Commerce
Commission had rejected the applica-
ton of the railroads for blanket Is
per cent increase.
Commissions Idea.
1t was the commissions idea that
these funds should be given to carriers
unable to meet fixed charges, but the
principle, and to this the commission
acquiesced. The Railroad Credit Cor
poration then was formed to handle
the advances, which can be made to
needy lines without collateral behind
them.
If the commission permits the rate
increase to be continued. and the indi-
vi@Ual roads to keep the proceeds, it
presumably would throw an additional
load on the Reconstruction Finance
Corporation If it holds that the pool
plan must be retained, some new Or
ganization like the Railroad Credit Cor
poration would have to be formed to
administer the fund as the charter
of this group covers only its operation
under the rates expiring in March
1t was also made known yesterday
that Alfred P. Thorn. general counsel
of the Railway Association. would ap-
pear soon before the Senate Foreign Re
lations Committee in Washington to
outline the carriers attitude toward the
St. Lawrence River SeaWay project. No
direct intimation was given as to Thorn S
forthcoming argument before the Sen
ate committee. but it was generally in
ferred that hel would enter vigorous
protest against the project as inimical
to the interests of the railroads at a
time when they are feeling keenly the
competitive influence of waterways and
other forms of transportation.
Plight Laid to Business.
The present plight of the railroads
was laid to general business conditions,
Government subsidization of other
forms of transportation and unwise
regulation by John j. Pelley, president
of the New York, New Haven & Hart
ford Railroad, in an address last night
at the twenty-fourth annual dinner OF
the Railway Business Association, at
tended by more than 1000 officials OF
railroads and allied industries.
Even if conditions were normal" he
said. I'VE would still have railroad
problem because other forms of trans
portation are subsidized. Taxpayers
spend millions on airways, waterways
and on highways used by BUSES and
trucks"
The association at its meeting adopt
ed a resolution urging that rate regu-
lations net applied to other forms of
transportation be lifted from the rail-
roads. 1t also urged reduction of taxes,
avoidance of Government ownership in
any fields of transportation and COM
munication and the retroactive repeal
of the existing recapture clause Of sec
ton 15-A. and that existing liabilities
of the railroads under such clause be
Cancelled and moneys already paid in
hereunder, including the proceeds of
investment thereof should be reim-
bursed to the respective carriers"
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