Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-09-09
Rails Ask Speed
|0n Rate Boost
To Avert Loss
ice Hearing Opened
With Plea to Avoid
Deficit in Industry
BY the Associated Press

The Nations railroads, seeking
an immediate temporary 10 pei
cent increase in freight rates
told the Interstate Commerce
Commission today that each
days delay in granting the raise
represents IAN irreparable loss
to the carriers"
Actually the railroads are asking
q per cent increase with the IL
per cent to take effect at once as
interim relief" while hearings pro-
coed on the larger figure.
Jacob Aronson, vice president OF
the New York Central Railroad, act
ing as spokesman for the entire in
dustry, told the ICC::
THE uncontroverted figures show
that unless relief is granted in the
way of increased freight rates, net
railway operating income for the
industry as whole will almost dis
appear and for many of the large
and important roads of the country
deep deficits will ensue.
1.-THE most disturbing aspect oil
this is that the condition prevails
at a time when the railroads are
carrying the largest volume OF
freight traffic in all peacetime his
tory"
Crowd Forces Change in Rooms.
The start of the hearing was de-
layed briefly as an overflow crowd
of representatives of the railroads
and of shipping interests marshal
ing major opposition to the in
creases made it necessary to shift
the proceedings from the usual
ICC chamber to a 1,400-capacity
departmental auditorium in an ad-
joining building. The auditorium
was more than half filled as the
hearing got under way.
ICC Chairman Clyde B. Aitchisor
and Commissioners j. Haden All.
dredge and Walter M. w. Splawr
are representing the 11-membel
commission.
Mr.. Aronson told the ICC the pro-
posed 10 per cent increase now "wil
just about offset" the 151a-cents-an
hour wage raise granted railroad
incorporating employees by an arbi.
tration board last week along with
cost increases for materials anc
supplies the last two months.
Wage Raise to Cost 468 Million.
He estimated this cost of in.
creased wages at $468, 600, 900 a yeal
and said the rise in prices for mate
rails and supplies since last june
amount to $158, 900 900 annually.
The railroads were granted a II
per cent freight rate increase last
January.
On the basis of increased operat-
ing costs and greater OUTLAWS for
materials and supplies they asked
another 1877 per cent increase in
July. When the wage boosts came
along last week they raised their
request to q per cent, asking the II
per cent raise at once.
James K. Knudson, chief counsel
for the Agriculture Department
who held a series of conferences
with farm groups and food process
sors during the past week, told re-
porters in advance of the session
that the department will oppose
vigorously any attempt to put an
interim increase into effect with
out full and fair hearing"
Grange Urges 90-Day Delay.
The National Grange suggested
some time ago that there should
be at least 9O-day waiting period
after the railroads have presented
their case to permit an opposition
answer.
Ed Lacey, executive secretary oil
the National Industrial Traffic
League, which is intervening in the
proceeding in behalf of Industrial
shippers, said the railroad request
for an immediate rate increase had
produced "a state of confusion"
1T will just have to be realized
(See FREIGHT RATES, Page Al