Evening star., 1939-02-26

Inc complex and, TO the average per-
son. dull subject of railway freight rates
is now being dramatized as a great
sectional issue-Which it is
On the one hand, the North and East
favor continuing the present freight
rate structure with differentials to their
interest. On the other hand, the South,
the Southwest and the Far West, MAIN
tanning that present rates are unfair
and discriminatory against them, are
seeking revision.
The active campaign for this revision
in concerted way, got under way in May,
1887, when nine Southern Governors
organized a group to fight for removal
of the differentials. Since then the
controversy has been gradually taking
shape along sectional lines. Two recent
events serve to accentuate the conflict
One is the announcement that sub
committee of the Senate Interstate Com
merce Committee is scheduled to begin
hearings tomorrow on the subject. These
hearings will dramatize the fight on
Capitol Hill for revision-a sectional
fight on economic issues which war
70-odd years ago emphasized but did not
settle.
Nomination Significant.
The other event, of less dramatic pos
sbilities, perhaps, but of special signif-
canoe, is the nomination by President
Roosevelt of j. Haden Alldredge for a
place on the Interstate Commerce Com
mi oir To e{n
native of Alabama, Mr.. Alldredge has
been since 1894 rate specialist for the
Tennessee Valley Authority. AS men,
ber of the commission, he may be ex-
pected to bring to his work the benefit
OF years of study and familiarity with
the subject of railway freight rates and
a conviction-a strong conviction, it is
that the existing freight rate structure,
in its various ramifications, is retarding
the development of the South. This. in
turn, he believes. is holding back the
progress of the country as whole.
Mr.. Alldredge made detailed study
of the freight rate problem for the T.
V. A. In this study, published by Con-
gress as public document he pointed
out that there is no national freight
rate structure. Instead there is COM
posite of regional structures. which are
simply the outgrowth of tradition. One
region, or territory as it is known in
railroad parlance, charges one rate; an
other charges different one. The East
ern or official territory, as it is known,
has the lowest.
Examples Cited.
Numerous differences favoring the
Eastern or official territory are cited.
For example, Knoxville shipper, send
ing f1rst-class freight from that place to
Columbus, Ohio, distance of 1893 miles,
must pay s1.41 per 100 pounds.
On the other hand a Baltimore ship
per may send freight to Warren, Ohio, a
distance of 1872 miles, but all within the
official territory, for "a cents per 100
pounds.
Thus, it will be seen, the rates favor
the Baltimore shipper as against the
Knoxville shipper by Al cents on each
100 pounds, although the freight is the
same class and there is only mile diff
ference in the distance.
Even greater differences exist in inter-
territorial shipments from the South
west. An Ell Paso (Tex) shipper, send
ing goods to Springfield, ILL.,, a distance
of 1926 miles, would pay $3.50 per 100
pounds. On the other hand, Spring.
field Gll) manufacturer could ship his
products to Lewiston, Me-, a distance of
1926 miles, for $173 per 100 pounds, a
difference in his favor compared with
the Ell Paso shipper Of $1.57. 90 per
cent should be added to this and the
rates cited above for freight-rate in
creases allowed since Mr. Alldredge's
study was published)
Into such figures and facts, charts
and tables, Mr.. Alldredge, a heavy, soft
spoken man, reads more than cost fac