Show rus DS LOSE IN INIc INIc Ic AND SHORT SHORI III OiL RATE HAlf FIGHT a Through rough Tariff tRied Without Cut in termed mediate Rates ULD D CAUSE LOSS ro EASTERN LINES c Coast Divided in inlew lew w as Expressed at Ie c. c Hearing H March 13 AP CAP railroads failed Ifor the second time in five interstate commerce approval val of reduced frates on long hauls with with- plying the cuts to movements Ic case Se decided today was that e Western transcontinental l rs who vho sought reductions on leven commodities moving I origin territory west of the thet t line to Pacific coast als alin in an effort to cope with rn who can through the Panama canal a 7 to 3 vote with Commis- Commis Esch Me Meyer er and Aitchi- Aitchi I the commission held while hUe the carriers hoped to toj tolate late it j traffic through the pro- pro I Jr reductions and Increase net aeS they had not applied the theo o 0 intermediate destinations Be se this would have haye more than gain from increased the ports ING THREE YEARS tease case e had been pending for forI I years Sears arl and involved the long tl fiort rt haul provision of section thiel Interstate commerce act akes it ft discretionary with to grant relief by lower rates for long short hot hauls Gooding bill pending in the wipe IPe out this w power r I held that the t re re- frates rates Tates would have diverted a volume of traffic prin- prin I F Fand ron and steel articles artl l from f om r Eastern points to Chicago ry and would have deprived rn lines of the revenue they it rive from the movement of jr raffle to Atlantic ports No Not o opta pta t lof of this loss it said aid apI apin ap- ap in the the record of the case 1 h an rail all-rail movement from BO Jo I of tons of iron and anda a ear and a gain of to 0 per Lb because use of the reduction In ates the commission declared ty yf f Illustration the Eastern lose the revenue of s. s D LOSSES th 9 tonnage should be lost loste e district it t ase ashe as- as he e Eastern lines would lithe th the neighborhood of 1000 t At 40 cents per pet pounds s 's s 0 the water lines would C the gain to the Western would QuId about offset the loss Eastern carriers and water th the thi commission added the would not only only- s sufI suf f- f I ss of revenue through a r rek re- re k t in the water-borne water traffic in the spread beh beth be- be i flKe th h rail all-rail rates from Chi Chi- the East would tend tendrie rl rie e them of a considerable of such traffic as now ts tes in the East and moves commissioners II t forth their views at le length d he majority had failed to athe question whether the if it applied on shorter would be fully compensatory Her ther r the present rates to the thep p territory are reason- reason 1 QUESTION ey Declared l had always one of the lunda- lunda o on page 6 ROADS LOSE IN LONG AND SHORT HAUL RATE FIGHT Continued from page 1 mental questions in cases of ot this kind The principal commodities on which the roads road A sought reductions were Iron iroll and steer steel paper and paper paper paper pa pa- per products cotton piece goods lard substitutes paint roofing rosin soap and soda Extensive hearings were held helt throughout the countr country with Midwest Mid Mid- west we wes n Interests excepting the Iron and steel Industries affiliated with the United States Steel corporation corporation corporation corpora corpora- tion generally supporting the re reduced reduced reduced re- re rates and Eastern Kastern manufacturers manufacturers manufacturers manu manu- and shippers aligned with the opposition Except for certain lumber fruit mining and flour lour milling Interests Interest those In the Intermountain territory also withheld withheld withheld with with- held their thell support of ot the proposed reductions Interests on the Pacific Pantie coast were divided in their views on the proposed proposed proposed pro pro- posed reduction the majority re report report report re- re port declaring the manufacturers In that region regon other than lumber opposed to It t on the ground that thata a ne new competitive field would be opened up FAVORED BY COAST Jobbers and distributors at the coast ports however favored the Western estern u transcontinental railroads' railroads application because of the benefit they would deprive by having the large producing district of or the Middle Middle Mid Mid- dle West made available to them themas as additional sources of supply at lower rates Considerable testimony rest rest- mony In the case case also was offered b by shippers of fruit lumber and flour mill products eastbound who generally favored the application on the round that any increase In tn the westbound traffic of the railroads i would result In tn a better car supply for their products and might lead to reductions In their rates or at least prevent increases |