Evening star., 1935-12-08

I-MOLudy, 4HuSodyJ EIludy ana SAT
urday.
The railroads, asking for this, ex-
planned that Il would make operative
approximately the same sort Of sched-
ule that is followed by the steamship
lines and would have an economical
aspect also by consolidating the citrus
traffic so it might be handled in larger
units.
The new rates can be applied imme-
diately-the shipping season now is
at its height-and are effective until
July of next year. The railroads that
will benefit principally are the Sea-
board Air Line, Atlantic Coast Line,
Florida East Coast and Southern, to
the South. and Pennsylvania, Balti-
more & Ohio, New Haven and Bos-
ton & Maine to the North. The four
ship lines which sought to block the
land carriers are the Bull, Clyde-Mal-
lory, Merchants & Miners and Re-
frigerated.
An example of what the new rate
level will be is shown in the case of
a 100-pound shipment from Orlando
to New York. The regular rail rate
has been $1.04, the new-the same as
the combination ruck-boat-651z
cents. The revenue return figures out
about 2012 cents per car mile and the
I. c. c. held that if the water lines
cut further the railroads could scale
their rates down to minimum car
mile yield of IL cents, which would
mean a freight rate of approximately
SO cents a hundred.
Rail Lines Took Beating.
The railroads have been taking q
beating on the Florida eastbound cit
rus traffic for about six years. In the
season Of 1930-31, in a movement in
excess of $4,000 cars, the rail routes
got 50 per cent and the boats the 7
that was left. In the last shipping
season-l934-35--the picture had been
completely reversed. and in a move
ment of like proportions the boats got
86 per cent and the railroads IA, ac-
cording to an exhibit filed with the
commission.
For the country as a whole. the
railroads and boats got about Al DER
cent each and the trucks the rest.
In the meanwhile there has been q
struggle for this business. The mat
ter actually goes back to 1928, when
the I. c. C. fixed citrus rates, estab-
fishing tariffs both for alI-raiI and
rall-ooat hauls. The latter was Is
cents hundred under the former,
the dif1erential being allowed because
OF the superior facilities afforded by
the railroads, which offered refriger-
/ alton.
Then the steamship service began to
be expanded. refrigerating equipment
was added and the next step was an
agreement between rail and water car
riers by which the differential was cut
from 1S to cents. Ship lines have
contended that this ARRANGEMENT
didn't get a fair test. At any rate. it
didn't work out, for the water carriers
continued to prosper, and their COM
petttors to slump. Then came the
blow that just about lifted the rail-
roads out of this field. The steam.
ship companies began to use truck in
stead of rail haul to move the traffic
from their interior points to ports.
This operated to cut their charges fur
ther and at the same time removed
the steamship rates from the regu-
latory powers Of the l. c. c., inaSmuch
as they no longer were joint rail-
water, but port-to-port, where the
Federal agency has no authority.
And when the railroads, despite
seasonal adjustments. continued to get
only the crumbs, and few Of these,
the appeal for relief went out.
Increased Expenditures Cited.
Supporting their plea the railroads
cited increased capital expenditures to
handle a business that was going to
nothing; pointedly inferred discrimi-
nation by recalling huge Government
expenditures for the waterways the
boats were using, and said further
that If their competitors were going to
get the cream of the traffic, they
could not maintain eficient service to
handle vegetable and citrus movement
not subject to boat-truck competition.
The trucker didn't get into the fight,
but the steamship companies came
back with strong representations in
their own behalf. They cited their
expenditures "in response to public
demand" for more economical trans
portation that would take advantage
OF the waterways. and said that under
parity of rates they could not COM
pete for the business with the rail.
roads, which have faster service.
The commission majority, however,
reviewing the argument, concluded
"that applicants have established a
special case wherein relief is justified I"
The commission minority took q
sharply differing view. Commissioner
Porter. writing the principal dissent,
felt that the intermediate rates would
be out of line, and also took excep-
ton to the application of different
scale Of rates on different days of the
week. In this he was joined by Conn
missioner Lee.
| Mr.. Splawn was terse: This appli-
cation raises issues too big and too
novel to be disposed of incidentally to
granting relief under the authority Of
the fourth section"
Mr. Caskie went along with ths
principle, but also found fault with the
"split-week" rate innovation, and was
unwilling to let the railroads make the
further provisional cut that the ma
jority sanctioned if necessary TO meet
another reduction by the ships.
The commission action is designed
to hearten the railroads In their con.
tinuing fight for equal treatment" to
meet competition. Just how much
wider application this specific plak