Evening star., 1937-12-12
VOLUNTARY RAIL
LOSS HELD HUGE
Spokesman for Shippers
Tells Commission Rate Is
Often, Unimposed.
By the Associated Press.

BY the Associated Press.
A spokesman for shippers told the
Interstate Commerce Commission yes
terday that the railroads were throw
ing away million dollars day by
keeping low rates which they could
raise without commission action.
r. C. Fullbright, chairman Of the
shippers committee, was the speaker.
He appeared at q time when the COM
mission was arranging to give a quick
decision on the railroads appeal for
q IS per cent raise in rates.
Mr.. Fullbright said the evidence
showed there were many thousands
of reduced rates that had been put
at levels far below those set by the
commission in order to meet the
competition Of highway and water
hauling agencies.
The railroads are at liberty to in
crease such depressed rates at any
time without asking the Interstate
Commerce Commission for authority"
he said The commission seldom in
terferes with the railroads in increas-
ing these depressed rates where the
railroads feel that they can get more
revenue out of the traffic"
Rushing Tactics Charged.
Mr.. Fullbright said the carriers
were attempting to rush the COM
mission" and to place all respon-
sibility on it without regard to rudi-
mentary requirements of = fair hear
ing for shippers"
The carriers, Mr.. Fullbright said,
should be compelled to make a full
showing Of the extent to which they
are losing revenue through voluntary
depressed rates"
The commission announced final
hearing Of testimony would begin jan
uary II. Closing oral arguments will
be started as soon as the testimony
taking is complete, the commission
said. This created an impression that
q decision might be expected not later
than March l and some experts pre-
dicted one even earlier. Railroad ex-
perts said q decision by March l
would establish a new record for ter
mination of major rate case.
The I. c. c. Friday denied = mo-
ton by the carriers for an immediate
decision.
Briefs TO Follow Arguments.
Under its revised schedule, the final
hearing on January II will continue
until the taking Of testimony is COM
pleted. Oral arguments will follow
Immediately. Briefs, If any, must be
fled by the conclusion of oral argu-
ments.
Mark M. Jones, vice president of
the Transportation Association Of
America, who appeared yesterday in
behalf Of the railroads application,
denied that the railroads were over
capitalized.
MI. Jones said securities outstand-
ing with the public approximated $l9.-
00O, ,000, 900 and that the actual prop
erty investment exceeded $26, 6,o00, ,000,-
900.
The valuation carried by the I. C.
c., he said, Is in the neighborhood Of
$24, ,000, 900 900.
Mr.. Jones said the Board Of Direc-
tors of the Transportation Association
had considered possible alternatives
but found nothing other than an i'm
mediate increase in railroad revenues
that would meet the need for imme.
diate action to stop the rapid decline
in the economic position OF the rail-
| roads. ....
| Fear Added Trahic Slump.
Harry A. Wheeler OF Chicago
president of the Railway Business
Association. another witness for thu
railroads application, said the reces'
sion was certain to extend into 1881
and that the volume Of trafic for thu
full year 1898 might be 10 per cen
lower than 1897.
AN increase in rail rates seems II
accord with the public interest,"" h'
said.
Appearing In opposition to the rail
roads application, DR.. Wilson Comp
ton, secretary and manager OF tn
National Lumber Manufacturers As
sociation, said . general increase IL
lumber freight rates will retard hom
building, will reduce lumber tonnag'
and will In the long run produce les
revenue for the railroads"
Marcus Emmert, general tram
manager Of the Coca-Cola Co., At
lanta, urged the granting Of tn
increase. He said he did not believ