Evening star., 1939-12-01
Freight Rate View
OF South Upheld in
5-to-4I. {. {. Ruling
Reductions Ordered in
korthbound Charges
On Certain Articles
- the Associated Press.

- the Associated Press.
In a 5-to-4 decision, the Inter-
state Commerce Commission upheld
yesterday the South's long-standing
complaint against discriminatory"
freight rates, and ordered reductions
in northbound rail charges on q list
Of manufactured articles.
Granting q plea of the Southern
Governors Conference, the commits
sion, in effect, recognized the prin-
ciple of establishing rate parity be-
tween shipments wholly within the
North and those from the South to
Northern points.
On q dozen commodities the COM
mission ordered rate reductions
ranging from 5 to IS per cent. On
about as many others covered in the
Southern complaint, 1t ordered no
changes, pointing out there was no
evidence that existing rates were
unlawful.
It was generally believed the
Southern Governors success in this
case would encourage them to ME
proceedings seeking a general down.
ward revision of South-North rates.
Standing for and Against.
Supporting the decision were
Commissioners Clyde B. Aitchison,
William e. Lee, Marion M. Caskie,
Walter M. w. Splawn and John L.
Rogers. Against it were Chairman
Joseph B. Eastman and Commis-
sioners Claude r. Porter, Charles
d. Mahafiie, and Carroll Miller.
Two new members, Commissioners
J. Harden Alldredge and William
Patterson, did not participate in the
decision.
The commission ordered reduc-
tions on stoves and ranges, stone.
enameled iron or steel plumbers
goods, iron body valves. f1re
hydrants, cast iron pipe fittings,
brass pipe fittings, cocks and valves,
tale and soapstone and papetries.
Reductions were denied on hol-
lowware, fireplace fixtures, electrical
appliances, boots and shoes. excel
sior. wood and excelsior packing mats,
paper articles except papetries,
metal furniture, canned goods, pot
terry, cordage and binder twine.
The commission fixed March l,
1910, as the effective date OF the
order. Meanwhile, Northern car
riers may seek re-hearing before
the commission or appeal to the
Federal courts.
Comparison Of Rates.
The I. c. c. majority said the rates
prescribed generally are on lower
levels than the present rates on the
same articles from the North to the
South.
TT does not necessarily follow,
however, that this, in itself, would
be unfair to Northern producers and
shippers so long as the southbound
interterritorial rates are on levels
no higher than the rates on like
traffic within the South" the ruling
said.
Possibility that the establishment
of northbound interterritorial rates
on approximately the Northern level
may change the relation OF the pres
ent rates with the interterritorial
rates between the West and South
west, on the one hand, and the
North, on the other, "is not a justi-
fication for the maintenance Of un-
reasonable or unduly prejudicial
rates from the South to the North,"
1t was stated.
Furthermore, the record contains
no evidence of the effect, If any, of
such. a change in relation of these
rates." the ruling said.
Commissioner Miller said in dis
senting opinion, In which Commis-
sioner Mahaffie joined, that he felt
the Southern complaint should be
dismissed "for lack of proof"
Commissioner Eastman. in another
dissenting opinion joined by Com
missioner Porter, said the record
"does not, in my opinion, justify the
basic conclusions and findings Of the
majority"