Evening star., 1935-03-31
PERMANENT RATE
INCREASE DENIED
|. C. C. Again Turns to
Makeshift Method of
Emergency Charges.
By the Associated Press.

By the Associated Press.
Terming general freight rate sd-
vances IAN inadequate and dangerous
method" of meeting modern railroad
problems. the Interstate Commerce
Commission yesterday turned again to
the makeshift method of emergency
charges to help tide American rail
carriers over the next Is months.
It fatty denied permission to make
permanent general increases designed
to raise sl70, 1000, 900 a year of needed
revenue. What 1t did authorize was
q resumption Of the emergency charge
method of rate, increases in effect
from January 4s1s32, until September
80, 1888
Some variations were made in the
new charges as compared with the
earlier emergency list. They will be
in effect until June 80, 1886. Major
farm products were exempted from
any increases.
The rejection of the urgent plea OF
the carriers comes on the eve of s
per cent increase in railroad wages
effective tomorrow. This wage in
crease Is estimated to affect about
$4,000 workers and to amount to
80,000,00O q year. Against this the
emergency charges were estimated by
Commissioner Miller of the Interstate
Commerce Commission as liable to
yield about $85 .000,000 a year.
Last Of Series Of Increases.
The wage raise is the last of series
OF increases designed to restore rail-
road wages to their 1880 level. In
1881 the railroads and their employees
agreed to deduction of 10 per cent
from pay checks for one year. This
was continued until last March, when
it was agreed to restore wages, one
fourth on last June 80. one-fourth
January last and the remainder
April l.
The commission split to on the
rate decision. Commissioners Meyer.
McManamy, Lee, Mahaffie and Splawn
made up the majority taking the view
that although a general increase was
unwise, the railroads are confronted
by a grave emergency and need some
relief during the next IS months.
Chairman Tate and Commissioners
Aitchison, Porter and Miller held any
sort of a rate increase would acceler-
ate the loss of traffic to trucks and
waterways.
Despite their grant of some addi-
tional revenues, the majority ad-
monished the carriers to study the
situation carefully.
Rates to Be Increased.
The general effect of the emergency
charges, which become effective as
soon rs the railroads can file blanket
supplements to their tariffs. will be
to increase carload rates by per cent
of the line haul rates, with q maxi
mum of cents per 100 pounds on
all except exempted major farm prod
ucts. lumber and fertilizer.
Less than carlot freight-the type
of freight trucks compete most bit
terly for-is not subject to any sur
charges until it is hauled 900 miles
or more and then from to IL cents
per 100 pounds. depending on distance,
but must never exceed 10 per cent of
the line haul charge.
Switching charges are increased 10
per cent. Coal, always treated sepa-
rately In rate cases because of Pc
culiar rate structure covering the Ap-
palachian coal fields, is made subject
to charges ranging from ) to Is cents
per ton, depending on distance.
Lake cargo coal and iron will be
subject to a single increase Of IS cents
q ton, the railroads being specifically
forbidden to apply the increase at
both ends Of the water haul as was