Evening star., 1937-06-21
WACE-HOUR BILL
NGRE0PENED
Freight Rate DifferentiaIs
Are Attacked Before Con.
gress Committees.
BY JOHN c. HENRY.

Freight rates which vary bv ..
much as Is per cent in different sec.
ions OF the country were placed under
nre OF the Senate and House Labor
committees today as hearings re-.
opened on the administration vapa
and hour bill
Appearing on invitation of commit
tee members from the less favored
sections. J. Hayden Allredge. trans
portation economist OF the Tennessee
Valley Authority, told the committee
the country has no national freight
rate structure" but rather a collection
OF regional structures that don't ct
very well at the edges"
Using 100 as the base for rates
within the Eastern ofncial district.
Allredge said the Southeast district
index flgure would be l39; Western
trunk, lat; Mountain West, III, and
Southwest, ITS.
Cites Examples.
As an example of how such djf-
1erentials work, Allredge told the COM
mittee that a l00-pound shipment
from Atlanta. Ga, to Louisville, XIV,
a distance OF 449 miles, would cost
Sl.5l. In contrast. the same shin.
ment from New York to Louisville.
distance OF S52 miles, would be only
sl49.
Among other examples. Allredge
cited a $l.23 rate from Nashville to
Indianapolis in contrast to an b.
cent rate from Kent, Ohio, to Indi.
annapolis, the distance being the same.
The freight rate differentials havs
been principal arguments Of South
ern committee members in seeking
an offsetting wage differential for
Southern industry. Authority to es.
tab!ish such a wage difIerential, they
contend, should be vested in the pro.
posed Labor Standards Board.
John B. Scott, representing the
Anthracite Institute, earlier told the
JOINT committee the Black -Connerv
bill was "an application Of unsound
economic principles
Expressing doubt as to constitu-
tionality Of the legislation, the Anthra-
cite Institute spokesman claimed that
such an application Of the commercs
clause of the Constitution, used as
basis for this legislation, would, in
effect, obliterate State lines and local
government"
Moreover, the measure, in many of
It's aspects, presents an unparalleled
picture Of delegation of underlined leg
islative power by the Congress to an
administrative board" Scott continued.
1T Is clear that in no recent de-
c!sion OF the Supreme Court is sup
port given to the doctrine that, under
the guise OF regulating commerce,
Congress may control hours and
wages.
The proposed act represents an
application Of unsound economic
principles. The measure will afford
foreign competitors an opportunity for
trade invasion. 1t will cause rising
costs and therefore curtail the pur-
chasing power Of the great majority
of the American people.
Declared Unsound.
THE proposed act is unsound from
the point of view of the public policy
of the United States, particularly the
policy dealing with industrial relations.
BY its terms it is intended to supple
ment the national labor relations act,
but in so doing it would, in effect,
divide the administration of that act
and seriously modify the beneficial
effects sought to be derived from that
statute"
After indorsing the principles of
the legislation, Horace Herr. secretary
OF the National League of Fruit and
Vegetable Distributors, emphasized
the necessity of marketing products
when they are ready, claiming that
the industry could not remain solvent
on 40-cent-per-hour minimum wage
for either 40-hour or 4S-hour week.
Instead, he suggested that power OF
discrimination be vested in the board
to vary standards for different indus
tries.
Herr also took occasion to attack
the lack of responsibility" of labor
unions, suggesting that the Labor
Standards Board be empowered to
publicly condemn a strike when
called before negotiations had been
under way specific period"