Evening star., 1947-10-08
1917 Freight Rate Rise
Due 10 Give Railroads
S7M,OO0,0O0 Yearly
By the Associoted Press

The Interstate Commerce Com
mission has granted the rail-
roads plea for a quick 10 per
cent increase in freight rates,
amounting to about 100000, 900
a year.
At the same time a large group
of Southern lines was given per-
mission to raise passenger fares.
Coastwise water carriers and
freight forwarders twho assemble
small-quantity freight for reship-
ment in carloads) we're authorized
to make the same increases in
freight charges as the railroads.
The freight increase may be ap-
piled on the days notice to the pub
lie Railroad sources said last night
that the gigantic task of revising
the complex rate schedules apply
ing across the country already is
under way. in the hope that new
ones can be posted publicly and
filed with the ICC in time to make
the increases effective next Mon
day, October 13.
Changes Are Temporary.
The changes were authorized by
the ICC late yesterday on tenn
porary basis, pending a decision on
the railroad petition for a jump
of q per cent over present sched-
ules. a5 -
The railroads contended at 4 two
week hearing last month that an
emergency increase was required to
meet mounting costs of supplies and
a 15-cent wage award which an
Arbitration Board made to nom
operating railway employees early in
September. ... ...-,.....
The ICC authorized 81 railroads
operating in the South to boost
basic passenger fares for sleeping
and parlor car travel from 3.3 to 3.5
cents mile, and gave 26 Southern
roads permission to put basic coach
fares up from 2.z to 2.5 cents a mile.
This represents an average 10 per
cent increase in such fares, and will
place them on the same level as new
passenger rates made effective by
all Eastern railroads early this
summer.
5-day Passenger Fare Notice.
Not all Southern lines asked for
the changes Those which did ask
we're given authority to increase their
passenger fares on five days notice
to the public.
The ICC gave the railroads an
average II per cent freight rate in
crease last January /. In yesterdays
freight order the 11-member COM
mission, acting unanimously took
note of substantial shipper opposition
to the increases, and protests by the
Agriculture and Interior Depart
ments and the National Association
of State Railroad and Utilities Com
missioners.
In granting the general 10 per
cent increase, the commission &C
cepted the railroad proposal that
boosts in rates on coal, coke and
iron ore be held to specific increases
of 10 to II cents per ton. somewhat
under the boost applied to other
freight.
10c Boost on Iron Ore.
The commission specified an IN
crease of 10. cents per ton on iron
ore and stipulated that railroads
hauling such ore to the Upper
Great Lakes ports should make no
increase at all.
On coal and coke, including lig-
mite, the commission authorized an
increase of 10 cents per net ton
$4,000 pounds) or IL cents per gross
ton (2240 pounds. =
The commission said it will set
for hearing as speedily as possible"
the portion of the rate case relating
to permanent 27 per cent increases.
Such hearings are to be held in the
East, South, West and Midwest be-
fore action is taken.