Salt Lake Telegram | 1934-08-28 | Page 13 | Utah Oppose Railway Move to Raise Rate

UTAH OPP OPPOSES SES RAILWAY MOVE TO RAISE RATE I Hearings to Give Carriers Opportunity to Present Their C Case se Commercial Utah Tuesday began mustering its strength to combat an effort eUort of the nations nation's class 1 railroads to o Increase freight rates on all aU commodities commodities com corn which if granted accordi according to o Ernest D. D Salm executive seere secre- y secre-y tar tary of the Utah Citizens Citizens' Rate asso asso- elation clation will wUl cost the state an add add- ional in freight charges annually The railroads Monday petitioned the he interstate commerce commission to authorize rate increases that would raise the nations nation's freight bill blU br between be- be tween 5 and 6 per cent on the grounds of mounting cost of operation opera opera- ion tion and to avert insolvency In view of the railroads' railroads appeal Mr Salm said the interstate commerce commerce com corn merce commission will vill probably conduct a series of hearings throughout through through- out the country at which times the carriers carrier will present their case e In detail detaIL Utah Group Joins Case V. V A A. Tracy president nt of the Utah Citizens' Citizens Rate Hate association Tuesday Indicated that h his organization would step into the case to protect the Interest interests in in- terest of the state We are arc opposed to subjecting Utah interests to unreasonable freight rates and any Increase of ot this nature which are burdensome to this state will be vigorously opposed by this association tion Mr Salm Sani also abo pointed out that the proposed rate increases would be detrimental to Utah in that thata a blanket boost would widen the cost spread on Utah products over that of oC competing territories which are closer to present Utah markets Fears General Increase It It Ih would mean an Increase on ev everything that goes into the making of a finished product topped off by a boost on the marketable ware which would hike the increase on some Utah commodities to nearly 35 per cent In the event the carriers carriers' rs' rs request for or an increase of 3 cents per pcr hundred bundred hun bun dred pounds on grain and products is granted Utah shippers will be forced to pay approximately more than at the present time Grain or or grain product shipments originating original original- ing or terminating in the state in 1932 totaled d tons dare Other Othet products on which Increases are atc asked and which come Into or are shipped from Ut Utah h include lead dand and lead products canned foodstuffs coat coal fresh fruit fresh tresh vegetables sugar copper and copper products Coal Industry Affected The coal industry in Utah would be particularly affected b by the pro posed increase Mr Salm Saim said Based on 1932 figures of coal shipments originating in Utah the industry would be assessed approximately 1 more Using population figures on which to base an estimate Mr Salm said that a burden of about would be placed on Salt Lake City if ii the Increases are gra granted ted He explained that class clew 1 I rail lall- roads include all roads showing an annual gross income of ot or over