OCR Text |
Show FREIGHT RATES RISEJPPOSED Solution to railroad revenue problems prob-lems lies in consolidation of lines ' and abandonment of uneconomic routes rather than in a IS per cent increase in the freight rates, H. H. Ellsworth, assistant secretary of the Utah Citizens' Rate association, told . Utah Manufacturers association directors di-rectors Friday in the chamber of commerce. Mr. Ellsworth said an increase of IS per cent in freight rates, asked of the interstate commerce commission commis-sion by the roads, would be In effect a 30 per cent increase, adding IS per cent to the cost of bringing consumer goods Into Utah and another an-other IS per cent on the cost of shipping products out. It would cost the state (3.000,000 to S4.000.000, he said. "The major Unes are prosperous, and about 30 per cent of the railroads rail-roads are not making a fair return, yet the average return is almost 2 per cent on their capital investment," invest-ment," Mr. Ellsworth continued. The prosperous lines, he said, would benefit by the rate increase, and the weaker lines would be strengthened little. |