Evening star., 1939-02-26

ern trunk line. 147:: Southeastern,
IFS, and Mountain Pacific, III.
Iett J. Haden Alldredge, re-
Gently nominated as member of
the l. c. c.
ences and distinctions in freight rates as
IAN objectional phase of the railroad sit
uation.'
Moreover" Mr.. Eastman continued,
lit has been difficult for the commission
to remedy such inequalities, for the
courts have recognized differences in
competitive conditions as defense
against discrimination"
Emergency Council Voices Views.
The National Emergency Council in its
report to President Roosevelt went into
the matter in detailed fashion. Calling
attention to the Souths average annual
income per person in 1887 of s304, COM
pared with a national average of 1904
the report said:
The present interterritorial
freight rates handicap the develop
ment of industry in the South This dis
advantage works hardship particularly
with regard to shipments into the i'm
portant Northeastern territory. This re-
gion. containing 81 per cent of the Ma
tion's population, is the greatest consum-
ing area. The Southeastern manufac-
turer sending goods across the boundary
into this region is at relative disadvan-
tage of approximately 80 per cent in the
charges which he has to pay as COM
pared with the rates for similar ship
ments entirely within the Eastern rate
territory. The Southwestern manu1ac-
turer, with IS per cent relative disad-
vantage, is even worse off, Such dis
advantage applies to the Southern ship
per even when, distance considered, ne is
entirely justified on economic grounds in
competing with producers within the
Eastern territory.
In effect, this difference in freight
rates creates man made wall to replace
the natural barrier long since overcome
by modern railroad engineering. Both
actual and potential Southern manufac-
turers are hampered because attractive
markets are restricted by the existence
of barrier that is now completely arti-
fetal.
South Caught in Wise.
. The South, in fact, has been
caught in wise that has kept it from
moving along with the main stream of
American economic life. On the one
hand, the freight rates have hampered
its industry; on the other hand, our high
tariff has subsidized industry in other
sections of the country at the expense of
the South. Penalized for being rural, and
handicapped in its efforts to industrialize,
the economic life of the South has been
squeezed to point where the purchasing
power of the Southern people does not
provide an adequate market for its own
industries nor an attractive market for
those of the rest of the country"
On their part, the Eastern manufac-
turers and the railroads argue that dis
tance alone cannot be the only basis for
rates. For instance, it is conceded that
rates must be higher in the Rocky Noun
tain region, where operating costs are
higher and transportation competition
less serious.
AS another reason for lower rates in
the Eastern territory, railroads insist
that truck competition is more serious
in the heavily populated sections of the
East and North. Rates for competitive
purposes, it is claimed, must be kept
lower It is also insisted that average
tons per freight car and the average
number of cars per train are higher. In
particular, it is pointed out that the most
profitable classes of freight are relatively