Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-08-24
'Equal' Freight
Rates Debated
Opinions Differ Over
New Scales Effect
On the South
By John A. Giles

Divergent predictions were ven
tured yesterday as to the effect of
the new "equalized" railroad class
freight rates on the industrial and
economic life of the South. The
change in rates became effective
Friday.
The Interstate Commerce Com
mission, after more than seven years
OF study and hard-fought hearings
in which two trunks of testimony
and charts were gathered, ordered
the changes on complaint of officials
of Southern States that higher rates
in their region gave Northern man
ufacturers competitive advantage.
The Supreme Court on May II
upheld, to 2, the ICC order rails
ing the class rates 10 per cent in the
North and East and lowering them
10 per cent in the South and as
far West as the Rockies with accom-
panying interterritorial reductions
of 10 per cent. All but one or two
railroads will feel the effect of the
changes.
Items Covered
Changes in density of traffic
was given as the reason for the new
schedules.
The class rates apply to the move
ment of such items as Shirts shoes
utensils, furniture, food, and cloth
ing and perhaps half of shipments
in less than carload lots. The class
rates are distinguished from conn
modify" and exception" rates. The
ICC plans the complete equality OF
class ratings and the Supreme Court
decision cleared the way for even
tual adoption of that broader pro-
gram.
Ellis Arnall, former Governor of
Georgia and leading spokesman
for the proponents of the new sched-
ule, told The Star he saw the
changes as tremendously important
to the economy of the whole United
States.
ct effectively asserts that the
United States is one Nation rather
than a geographic entity divided
into an imperial (northern and
EASTERN territory and colonial ap-
pendages for exploitation Mr..
Arnall said. The decision points
the way to conditions under which
industry may be decentralized, in
comes may be equalized and re-
gional Determinations eliminated.
! Carriers Attitude
THE economic implications, i'm
portant as they are to the people
of the South and West, are less
consequential than the affirmation
of the political principle that the
United States is the common coun-
try of all Americans, and that
economic opportunity shall have
the same protection afforded to the
basic rights" he declared.
His statement that economic i'm
plications" were important to the
South brought from some railroad
officials the statement that the new
tariff would bring new competition
to Southern manufactured goods.
For, they pointed out, on large
number Of items the South had
enjoyed low freight rates for many
years-an effort of the Government
to build up Southern industry. The
equalization" they added, will wipe
out those rates.
THE South has gained nothing
of any consequence and has lost i'm
measurably in long range economic
effects" said G. E. Widell of Nash
vile, Tenn. Mr.. Widell is transpor.
tation director of the Tennessee
Manufacturers Association and
transportation adviser of the
Southern Industrial Council. He
was one of the leaders of the oppo-
sition to the new rates during the
prolonged hearings.
THE reductions on manufactured
goods will apply chiefly from the
North to the South" Mr.. Widell de-
clared. ct will retard industrial de-