Salt Lake Telegram | 1949-07-08 | Page 2 | Parley Set on U. P. Plan to Cut Oil Freight Rate

Parley Sot on U. P. Plan To Cut Oil Freight Rate WASHINGTON, July 8 Iff) The Interstate commerce commission commis-sion will hear oral argument July 21 on the Union Pacific rallroad'a I plan to reduce freight rates on petroleum products between 8alt I Lake City and points In the Pacific I northwest I The reduction la proposed to I meet the needs of large quantity I shipments to northwest cities from the Standard Oil Cc's Utah refineries. Standard has projected construction of a pipe Una Into the northwestern states to handle deliveries. de-liveries. However. Union Pacific announced an-nounced early this year ,that it would make a major reduction In the train load rates for such products prod-ucts between Utah, Idaho, Montana, Mon-tana, Oregon and Washington, the action being designed to make the pipe line construction unnecessary. The ICC refused to permit this change on grounds that It would disturb the relationship between train-load and single-car petroleum petro-leum shipments. Union Pacific then filed revised proposals to provide for reductions reduc-tions in both train-load and single-cm single-cm r traffic, and sought to make these effective June 1. Both of the proposals were protested pro-tested by barge line and carrier compaiuea In the west. The ICC again suspended the second Union Pacific proposal, pending an investigation. The oral argument scheduled here July 21 is on the railroad's petition to set the suspension order aside.