Show Railroads Outline Benefits of Geneva G neva Rate Cut Ice Officials Told That Industry Carriers Steel Plant Would Gain WASHINGTON w March 11 UP Triple Triple benefits would result from reduced railroad freight rates on shipments of iron and steel from the war-built war Geneva Utah steel plant to the PacIfic coast the Interstate Commerce commission was told Tuesday i John lohn E. E Hennessy attorney for for- railroads serving the gi giant nt n Utah steel works works- said the lower rates would bring new revenues to the railroads spur west coast industrial development and give Geneva a a ready market Hennessy testified before t I th thI the I IC C C in support of new tariffs tars recently recently recently re re- re- re filed by the railroads which would reduce the rates for hauling iron iron and steel from Utah to west coast cities by a hundred pounds Because of pro protests ests the I C C ordered the new rates suspended sus IUS- at least until March 31 and ordered a new hearing into th the matter Proposed Cuts The railroads propose cutting the rates from to a hundred hundred hundred hun hun- dred pounds on shipments nU from Geneva to San Francisco Los Angeles Angeles Angeles An An- geles and Portland Ore and from and from to a hundred pounds to Seattle Wash Hennesy said the they also are prepared prepared prepared pre pre- pared to establish new establish new rates to Spokane Wash yash equal to the Portland Portland Port Port- land rates He deni denied d that the reduced rates are so low as to be noncompensatory tory to the haulers hauler He said th tha tho roads would gain substantially In new revenues from increased traffic He argued that t none of of- the tha roads serving Geneva serve the Fontana steel plant in California which is operated by Henry J. J Kaiser and therefore their action ca can riot not ot b be considered as prejudicial cial dat to the California industry West Vest to Suffer uffer will Geneva Geneva will ll not xit fold up p If tha effective date of the rates is de delayed de but the railroads d ViII will ViII's s suffer as as will lI west t coast as tind industries because be be cause of- of the con continued shortage of ot steel Hennessy said Thomas F. F Lynch attorney for forthe forthe forthe the Geneva Steel Co subsidiary of ot U. U S. S Steel which bought th the tho government-financed government Utah works testified Geneva must have a substantial sub market on the west coast This he said would be realized by bythe bythe bythe the lower freight rates ra es This can not be considered as being a subsidy for u U. U S. S Steel he said Nothing is further from front the truth Lynch predicted if it the reduced rates are arc not approved finally by bythe bythe bythe the I C the Geneva plant may maybe bo be forced to revise its plans to forego the manufacture of finished steel teel products and concentrate on pig iron The Reconstruction F F Finance i n a a. n nee C C Corp in a letter made public c at atthe atthe atthe the hearing said it it-is it is not protesting protest ing the proposed new freight rates or requesting their suspension Only Asked Probe Adm Hobson secretary of or the th R F C said there had been wide publicity to this effect because of ot ofa ota a previous letter written to the tho commission o on Feb 24 21 asking that an investigation be made to determine deter mine whether the freight r rate te structure is fair and equitable to the Fontana plant in California Lynch told the commission that when his firm a acquired the Geneva pl plant nt last June Jun it had committed itself itsel to establishing base basc prices es there designed to reduce the cost of delivered steel in ln the west He operation had resulted in lit lowering the steel price at Salt Lake City by about 15 5 a ton tone with proportionate reductions elsewhere else ese where in Sn the area These rates are essential to th tho economic and industrial development develop development development ment of ot the west vest he said This argument was also emphasized emphasized sized b by Utah's attorney general Grover A. A Giles He appeared on behalf of Gov Herbert B. B Maw who was unable to attend Tuesdays Tuesday's Tuesdays Tuesday's Tues Tues- days day's hearing Giles presented a resolution of ot the Utah legislature indorsing the tho proposed lower rates to the tha west coast Pushed by Utah Utah he said had its beginning as an agricultural state and when I the d development of its large mineral min mm- eral resources began it was largely an in absentee operation involving the export of raw materials for processing processing- elsewhere else G v. v Maw he ho asserted had pushed d a a campaign for industrial development within the state tate and the he operations at Geneva gave Impetus impetus im Im- petus to that campaign Some of ot Geneva's c competitors competitor have raised the contention the rate change would pla place c them thern a at a a disadvantage dis advantage unless there was WM a are re revision re revision vision of the rate structure elsewhere else else- where The Spokane Wash Vash merchants association has asked that hat the proposed reduced rates be ae applied to Spokane as well as the he coastal points I |