The Waterbury Democrat., 1935-06-25
Opposition To Clause
 Repeal Developing
Local Business Men Urged to Protest H. R. 3z63 Con-
 corning Lower Railroad Rates-Brown Explains

ent law is sufficiently broad tc protect the interests of both tho shippers and the railroads, because one of the stipulatlons in the law Is that any 50 .called Fourth Sec ton rate must be reasonably com -pensatory. This contemplatcs thai the interests of both carrier and shipper shall be protected. If tho law Is repealed the carriers car publish rates to the more distant points which are not reasonably compensatory at tho expense of tho intermediate points,--at the ex' pense of tho boat lines and at tho expense of New England shippers in particular.
 "To permit the rail carriers to disregard the terms of the present law and, at their will, to make rates lower for longer than for shorter hauls on the same route, Mir. Brown said, "would be equiva' lent to assent on the part of ship. pers located on or near the sea. coast to be robbed of the benefit oi water transportation. Just as an illustration, the trans-continental carriers, who are the active pro. ponents of the proposed repeal, would be in a position to set up rail rates from Central West pro- dueing sections (which are, com petitive with the Atlantic Sea. board), to Pacific Coast markets, on such bases as to par customers from these markets and destroy the value of justihably low steam ship rates between East and the West Coast" MT. Brown went on to point out that this would have the added effect of going far to- ward drying up our merchant ma rine.
 South calming
 Tt is,a notorious fact" said Mir, Brown, that southern shippers are every effort to win markets away from northern competitors especially in Nv England. Among tho various methods employed is the ready alliance Of the southern carriers in according their ship. DOTS favorable rates. If the Fourth section barrier were removed they would go the entire distance and mako such low, rates between southern producing points and the frontiers of other rate territoriei us to effectively steal desirable markets from northerners. Recent freight rate history indicates this disposition in an unmistakable manner" ass4
 "our own railroads would suffer if unduly low ransoontinenta rates were established. First they would lose traffic because eastern manufactur would lose business to competitors in tho West. Sec. ondly, their division of tho trans. continental rato on what business might remain would be much lesi than the amounts they receive fol hauling traffic from the interior tt the port of trans-shipment b, water through the Panama Canal These reasons alone should impe eastern carriers to oppose the re, peal of the clause" was the opin' ion of MT. Brown.
 Law Intact
 MT. Brown quoted the opinion of Interstate Commerce Commis. sioner McManamy to support his contention that the law should re- main. intact, as follows "We (ths Interstate Commerce Commission are of the opinion that the record of the carriers with respect to the establishment Of higher rates fol shorter than for longer distances during the nearly half century since the enactment of the original act has fully demonstrated the need for further protection of the ship. ping public and 1t is our view that the long and short haul pro vision of that section should bs continued in force to insure thii protection.
 Tn a long line of cases'' Mir Brown concluded ''the carrier. have been granted permission ts department from the strict termi of the clause where special cir cumstances and conditions have justified such departure. Tn, man! of lhesc proceedings they hav' had the support of interested ship pers, and it may be safely sais that the law at present is suffi ciently flexible to serve the needi Of both shippers and carriers. T' remove all restrictions and allow carriers to run rampant in this re gard would place shippers in ths position of standing to lose every thing and gain nothing. These bills, particularly H.R. s2s3 should not pass and legislatori should be SO advised.
 "fIcarings are at present belne held on this proposal SO that ns time should be lost, lest the ship. pers' interest be defauited."