Indianapolis Times, Volume 43, Number 15, Indianapolis, Marion County, 28 May 1931 — Page 4

PAGE 4

RAIL RATE HIKE PLEA VITALLY AFFECTS STATE Born Sees Indiana Paying Tribute, Receiving no Compensation. K4lro4&* contention that • 10 to 15 9*r cent freight rate Increase would stimulate economic recovery is encas* ins the thoucht of business men and economists throughout the country. Isaac Born. Indianapolis attorney, nationally known as a commerce counsel, familiar figure in Interstate Commerce commission hearings, has written two articles on the question for The Times. This is the second. BY ISAAC BORN It has been said of rate-making that it is not an exact science. It might, with equal truth, be said that science has no place in rate-making. There are no fixed principles; and criteria or standard may be changed over night. Competition not infrequently is introduced in pretense for flagrant Inequalities. The elements necessary for a definite conclusion even as to tangibles have little consideration. The result naturally is an unbridled action by which localities and classes of freight are accorded favoritism in rate-making. Necessarily there is accomplished the very purpose which the Act to Regulate was intended to prevent. And, further, there is tendency in ever-increasing degree to concentrate trade in a few favored channels and prosperity in a few favored cities. The effect upon the state of Indiana is marked. This state in its territory and of Itself has greater traffic density than any other part of the United States. It is, oi course, not proper to separate a territory into segments for rate-mak-ing purposes, but it would be no more than fair to give Indiana and states in like situation the consideration that it enjoys in natural conditions and legitimate advantages. Illinois in itself is not of as great traffic density as is Indiana and while it is part, intertemtorially, of the same territory as Indiana, has materially greater advantage in rates on traffic of importance than has Indiana. The absurdity of measuring with a varying standard has been demonstrated in the effect upon certain industries. Drained dry of ail resource by exactlous freight rates, property investments involving in conservative estimate more than twenty-five millions of dollars either have been scrapped or activities transferred to places where the railroads have not or do not exercise autocratic control over industry density, - ' Thus, respectable tonnage of a single commodity which at highly compensatory rates would produce even in these times of depression, gross revenue to the carriers of more than $35,000,000 yearly, has been completely lost to them, and

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this without regard for the welfare of the communities from which industrial activities have been removed. Fault Their Own The failure to reserve enough surplus from Incomes in good times to care for possible bad years, instead of distributing in excessive dividends might have led the plight in which the carriers now assert they find themselves. There can be no doubt that great volume of passenger traffic detracts from economies of freight operation, but it is hard to understand how the net revenue in passenger operation for the year 1928 of the two major trunk lines of the eastern district of around $40,000,000 each so easily can be made to disappear. Finally the railroads well could study the methods of certain other countries which are careful of public rights as such, and are not, even in the present great industrial upheaval, in distress from transportation operation. Should Clean House All these are but surface comments, as the subject is of magnitude and may not be discussed lightly. It may be fairly said that freight rates in the eastern district are so made as to build up a single objective to which the state of Indiana pays tribute without counter compenstion. The carriers should be able to present at this time a plan for material reduction in rates, and this well could be effected if they would proceed to clean house and adopt sane principles in fairly aligning their rates in respect to localities and classes of freight and incidentally remove the maze of special privileges with which their tariffs are surfeited; and, further, adjust their rates from other territories in which they participate in respect to transportation conditions, instead of attempting to act as an arbiter of economics. Poor Relief Cost Drops By Times Special FT. WAYNE, Ind., May 23. A decrease of $2,200 in poor relief expenditures of Ft. Wayne township for the month ended May 15 as compared to the one ended April 15 is reported by Elmer J. Fox, Ft. Wayne township trustee. The totals were respectively $10,302.14 and $12,543.21.

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THE INDIANAPOLIS TIMES

belief that this would stimulate buying and aid business recovery. Hia statement was in a sense a corollary of his previous recommendations for an annual wage. “Before all else is the problem of security,” he said. "Workers want to know that they can count on a job. “Without taking undue risk, most employers could unquestionably guarantee work to a certain portion of their work force. Practically every employer can estimate the number of men he will need even In dull seasons.” Green warned employers that, while perhaps a million men have found work since January, there A s little prospect of immediate relief for the more than five million left jobless. Excellent Rating Won BLOOMINGTON, Ind., May 28. For the second year the R. O. T. C. unit of Indiana university has been rated as excellent by the war department.

‘BREAM KILLER' NOW SEEKS TO BLAMEMOTHER Sleep-Walking Slayer ‘Lays Two Murders to Woman After Conviction. By United Press NEW YORK, May 28.—£Irs. Anna De Hall, under arrest for”homicide, sat in the Raymond street jail today and heard her son, Michael Filosa. accuse her of murdering his half-brother, Salvatore De Hall, and of slashing his half-sister. Catherine De Hall, with a razor, one night last November. Filosa, who recently was con-

victed of killing the 14-year-old boy “while walking in his sleep,” decided to accuse his mother of the murder after he learned that he was liable to a long prison term. In the face of his accusation today, Mrs. De Hall continued to deny that she had slain her son and slashed her daughter. “I know nothing about the murder,” she said. “I don’t know who did it.” “Arsenal” Destroyed By Times Special SOUTH BEND, Ind., May 28 “Destroy that arsenal,” City Judge A1 Hosinskl ordered police officials

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two guns, loaded, and one razor extra sharp, which police found on Calloway at the time of his arrest