The Hardin tribune-herald. [volume] (Hardin, Mont.) 1925-1973, 1945-06-21
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lin WASHINGTON
by WoIter Sheod
% WNU c~orsspondsas
Freight Rate Problem
WNU Washington Bureau
62I Union Trust Building.

w Interstate Commerce commits
sion. attempting to equalize freight
rates in the South and West with
the East, will mean to the small
town shippers, merchants, manufac-
turers and farmers in the Is, 900
small towns and rural communities,
no n here is prepared to predict.
No one believes, for instance, that
the present temporary rates. even
If made permanent, will play any
appreciable part in a reduction in
the cost Of retail business, or in the
costs Of commodities in the affected
areas. except perhaps in some rare
specific instances.
The Interstate Commerce commits
sion ruling, made after six years Of
study. and perhaps with an eye on
the Supreme court which has under
consideration the Governor Arnal
Georgia case, roughly reduces class
freight rates from Chicago and ILL.,
nois west to the Rocky mountains
and south below the Ohio and Po-
tomac rivers and in Virginia south
Of Richmond, about 10 per cent.
East of the Illinois Indiana line and
north Of the Ohio and Potomac the
class rates are increased 10 per
cent. Class freight rates. however.
comprise only about 10 per cent Of
total freight shipments, the other 90
per cent being in commodity Or bulk
carload lot shipments. The class
rates on the Pacific coast are not
affected.
But here is some background
on freight rates. -. The trend
since 1895 has been upwards go.
the ICC has refused to lower
rates on appeals Of shippers
even in the height Of the depres-
sion -. railroads applied for a
Is per cent increase In 1910 and
in 1912 the ICC handed down a
decision giving them about a
6 per cent increase on all rates
-. then on the instance of OPA
this 6 per cent increase was sus-
pended from year to year, the
last suspension expiring January
l, 1916, when the case is auto
matically reopened and rail-
roads will ask the increase be
reinstated . and they will
have the argument that war
shipments are of, reconversion
has set in and with reduced tom
mage they can't operate in the
postwar era with increased costs
and loss of business.
But here are some optimistic
gleanings from the decision, which
may result from this ruling of the
commission as aids to small bust
hess and to farmers:
l. Decrease in the rates In the
West and South will give impetus
to establishment Of new small bust
hess and manufacturing enterprises
in those sections which can compete
or a more even basis Of equality
with similar business in the North
and East.
2. The new rate reductions may
bring about greater decentralization
Of big business from the North and
East to the South and West states.
3. The ruling opens the way for
future revision Of the variations Of
the class rates. known as exception
and column rates. and those who
have studied the situation believe it
will mean the end definitely Of Sec
tional freight rates.
4. The next freight rate battle may
be on the charges of violations Of
the antitrust laws, which is the ba-
sis of the suit brought by the Geor-
gia governor.
Individual Situations Vary.
The effect of these rate reductions
on any one line of business or on
any one commodity cannot be fore
cast in exact terms. Advice from
the department Of commerce, for in
stance. is for individuals to study
their own situation where they
are buying. from manufa cturer, bro
ker or distributor . whether they
are buying or shipping from distrib-
utor's stocks which would carry the
commodity rate, and how they are
being billed, whether FOB manu-
facturer, distributor or broker
and then to change their methods
if it will be to their advantage.
In the North and East some harm
full results can be f%oreseen. For
instance a small manufacturer of
condiments. %jellies, ETC.. in New
York state, who ships in minimum
packages of 100 pounds or less with
a present rate Of IS cents per mini
mum shipment, will be forced to pay
rs cents under the new rates. or an
increase Of 20 per cent, which this
manufacturer says will put him out
Of business.
A small manufacturer in Arkan.
sas may, under the new reduced
rates, ship to Indianapolis and CON.
pete or, equal terms with his comnet.