| Show STOCK RATE CUT TO AID UTAH ik 4 It io V L L L J L J Revised Freight creight Charges Mean Large Savings for forI I Sheep Cattle Industry Carriers Continue to Present Arguments for 15 Pe PeI Pec ce Cent Boost st I GIVES VIEWS Stresses Bus and Truck Competition Competition Com Corn petition in West B Br By Associated Press Irell VAS WASHINGTON INGTON July 17 New 17 New de descriptions descriptions descriptions de- de of the serious financial plight of the railroads were given the interstate commerce commission today to today today to- to day close behind its issuance of an order for a downward revision of some western livestock rates Just before belore W. W R. R Cole had presented presented pre pre- pre pre-I the appeal of the southern carriers for a general generalIS 15 per cent rate increase the commission handed down the livestock order based upon an investigation into agricultural rates it conducted under the Hoch- Hoch Smith resol resolution Cole president of or the Louisville Ss Nashville railway said that in the present emergency it was no longer longera a question of se securing a f fair ir return on the thc investment but one of securIng securing securing ing a return sufficient to avoid re receiverships receiverships receiverships re- re and maintain reasonable credit His picture of the southern situation was presented after H. H A A. had told of the needs of the western c carriers for the raise in rates lates said he understood that i It was Intended to increase the rates on on shipments of sr grain ln from Canada to be milled In bond for export if it the roads were given the authority He expressed himself as sympathetic to the farmers' farmers plight but said he be it was to the interest Of agriculture agri culture that the railroads tamed so that they could give the farmer the service he needs representing the western western west west- em ern carriers was on the stand when the question was asked by an at attorney attorney attorney at- at torney Do you think wages ages are too high INTERRUPTS QUESTION Before could reply Commissioner Commissioner Com Corn missioner Meyer interrupted He explained that wages were under another authority In reply to a question said that western roads which he represented were concerned with bus bu busand busand and truck competition He was asked if it some roads In the southwest southwest southwest south south- west Intended to carry out proposals proposal to establish free up pick-up and delivery ery cry service to shippers I 1 am not certain about their plans plans' answered Asked about the copper copper- situation Continued on Pate ale Three Revision in Freight Rates Bates Means Huge Saving to Utah Carriers Continue to Present Arguments for 15 Per PerCent PerCent PerCent Cent Boost Continued Iro from P rue e One Dd replied I r dont don't think We ve would haul any more copper at this time If It we hauled It free tree Why haven't the railroad executives executives tives considered what other businesses businesses businesses busi busi- nesses have hare done that Is the possibility possibility of increasing sales ules by reducing reducing reducing ing rates was the tho query I I r dont don't think a a. decrease would stimulate business answered an but an Increase would at least until it became effective c said all the western roads had given him authority to speak for them In favor of the in in- in crease He added however that he could not say whether all were unanimous or enthusiastic In favor of the I change Cole described the railroad situation situation situation situa situa- tion as a a. potential threat to the entire entire en- en tire tiro financial and industrial structure tore lure of the nation The relation between railroad earnings and fixed charges Is vital vitaL Cole said and controls the credit standing of the railroads A railroad Is absolutely dependent In obtaining new capital upon the earning power of or the property and earning power Is In turn dependent upon the rate level of the volume of traffic The inadequacy of or the pre present nt rate level Is 15 amply demonstrated by bythe bythe bythe the inability of the tile railroads to earn earna a fair return upon an unprecedented volume of traffic generally during the period 1929 1926 Inclusive Cole said heroic measures to meet the existing emergency had been adopt adopted d by southern roads The Increase of 15 per cent now sought Cole said Is believed to be bethe bethe bethe the minimum Increase which would even measurably relieve the present emergency although the level of rates so produced would fall far short of the statutory rate of return |
