Indianapolis Times, Indianapolis, Marion County, 19 August 1938 — Page 11
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Report Due i in Fall On South’s Plea for Equal Freight Rate
ernors Appealing to
Ace Examiner Mattingly Studies Case Filed by Gov-
ICC for Rejuggling
Of Hauling Charges.
By MARSHALL M’NEIL. Times Special Writer WASHINGTON, Aug. 19.—The South and the Southwest will know this fall whether they have won their first major skirmish in the battle to attain freight-rate squalny with other regions.
Pending now before G.
H. Mattingly, ace examiner for the Inter-
state Commerce Commission, is ‘the case filled by Southern Governors, who appealed to the ICC to equalize freight charges on a long list of specified
commodities, : @
In Birmingham and Buffalo Mr. Mattingly heard testimony from the Governors themselves, from manufacturers and railroad experts, and he has ordered briefs to be submitted in 60 days. Thereafter he
‘will write his report, which will be
subject to approval by the commisgion. Meanwhile, the South's and the Southwest's long fight against freight-rate differentials has been nationally dramatized in the “report on Economic Conditions in the South” just published by the National Emergency Council, and President Roosevelt ‘has said it is obvious that something ought to be done at once about this problem. In many quarters of the South the NEC’s report has been unpopular. For instance, Senator Harrison (D. Miss.) said: “No one can tell me that the South is poorer or more ignorant than any other part of the country. It is not true.”
Discriminate Against South
But almost in the same breath he |.
gave his backing to the :report’s account of how freight" rates discriminate against the South. The South is likely to get together on the report's findings about
* freight rates, if on no other parts
&
»
of it. The hope of Southern Governors is that they will win the ICC case
now pending, and can move on from |
there into.a second case which will throw open the whole differentials question. Bas&d on the fact that it cost more
. to operate railroads in the South,
and on the fact that traffic was once much less dense there than elsewhere, the railroads and the ICC set up a system of rates which made it more costly to ship from a Southern or a Southwestern point to an Eastern point than between two Eastern points equally far apart. “The two chief reasons for higher freight rates have disappeared,” the NEC report on the South said. “The artificial rate structure handicaps the South in its efforts to expand and diversify.” The report contended that these man-made barriers between t South and Eastern markets put the Southeastern manufacturer at a “relative disadvantage of approximately 39 per cent in charges which he has to pay as compared with ihe rates for similar shipments within the Eastern rate territory.” Southwestern manufacturers have an even greater handicap, the report said, or approximately 75 per cent.
Figures Support NEC
While there are experts at the ICC who will dispute these percentages, a recent survey of the whole problem by the Tennessee Valley Authority cited figures that appear to back up the NEC. The TVA reported that to carry first-class freight the 393 miles from Knoxville, Tenn., to Columbus, O., the rate was 141 cents per 100 pounds, while to carry similar freight 392 miles from Baltimore, Md. to Warren, O., the rate was 94 cents per 100 pounds. Likewise, the rate for carrying first class freight 1236 miles from El Paso, Tex., to Springfield, Ill, was 830 cents per 100 pounds, while similar freight could be carried from Springfield, Ill, to Lewiston, Me. a distance of 1216 miles, for 173 gents per 100 pounds. As the NEC report explained it: #Under present conditions it is gheaper to concentrate and ship the South's zinc ore to the North, where it is made into metallic zinc, uised fo coat Northern steel, and ship it back te the South for its ‘tin’ roofs and other galvanized fronware, than it is to convert the ginc ore in the South without the economic loss of cross-hauling.”
Problem Not New
But the problem of freight-rate differentials against the South and Southwest is not new, nor has it es=
®¢ paped the attention of the ICC.
When he was Federal Co-ordina- . tor of transportation, Joseph B. Eastman of the ICC studied thé
‘e problem and pointed out the diffi-
culties of changing the setup. “An objectionable phase of the railroad situation for many years,”
he said, “has been the maintenance
of regional differences and distinctions, which are very imperfectly related to differences in costs- and of territorial boundary lines where rate systems and practices change. “It has tended to provincialize the railroads ‘and discourage national unity of action. It has been a prolific source of complaints to the commission. “Regional competition in rates and service has been as keen as the direct competition of parallel lines, and has had equelly undesirable and uneven results.” The freight-rate situation, the NEC report said, handicaps the South in its effort to industrialize and therefore helps to squeeze that region “to a point where the purchasing power of the Southern people does not provide an adequate market for its. own industries nor an attractive market for those of the rest of the country.”
BOOKLET DESCRIBES STATE GOVERNMENT
Free Pamphlet. Issued by Governor’s Office.
Departments and services of the State government are described in a 56-page booklet issued this week by the Governor's office. It is titled “Services Offered by Your Indiana
Gavernment.” Ten thousand copies have been printed for distribution to schools, libraries and public buildings, and
free copies may be had by writing
the - Governor's office, it was announced. The “indexed analysis” of the §tate government contains a brief historical preface. A foreword by Governor Townsend says it “was prepared to acquaint the average citizen with State government, in order that he may take full advantage of all services it offers him.”
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SHOOTING BY PRISON GUARD
‘Cojd- Blooded Murder’ Is Charged by Sheriff in Fugitive’s Death.
CROCKETT, Tex. Aug. 19 (U. P,)—Joseph Worden, ‘member of the Texas Prison Board, today announced appointment of a committee to “get to the bottom” of the slaying of an escaped convict by an official of the Eastman State Prison Farm. Mr. Worden requested five civilians to help him clear the mysterious circumstances surrounding the death of John Hendrix Frazier, 21. Rob Parker, an employee of the prison system for 16 years, ‘was charged with shooting Frazier as the convict stepped from behind.a tree, his hands in the air, and
Frazier was said to have been unarmed. Free on $10,000 Bond
The murder charge against Parker was filed by Sheriff Archie Maples. He submitted evidence of the alleged murder to Houston County Grand Jury, which took the case under advisement but had reached no conclusion when it adjourned last night. Parker was free on $10,000 bond. His attorneys, Rep. Nat Patton (D. Tex.) and State Senator Gordon Burns, believed that the Grand Jury would not sustain Sheriff Maples in‘ charges that Parker unjustifiably killed the young Dallas criminal, one of eight prisoners whe fled the prison farm Tuesday.
Attorneys Patton and Burns de-
make a statemen preliminary hearing. Probe to Be Restricted ‘Mr. Worden said the
would concern itself only with the
Parker case. He said the committee had not contemplated making a report on conditions at Eastham,
| where Texas houses its worst geimi-
nals.
‘ports that the Prison Board might extend ‘its investigation to include management and operation of the prison farm. Escapes have been frequent there recently, with from one to two prisoners escaping almost each month. It was from the Eastham farm that Pete Traxler, notorious Southwestern desperado, escaped last summer. and kept ‘officers of half a dozen. states busy until he was shot and captured near Hugo, Okla. Of the eight who fled in this most recent break, only one, Roy King, 26, still was unaccounted for. Authorities said he may have drowned in the ‘Trinity River, as did two of his companions. Three others be-|-sides Frazier were shot and killed. Only W. G. Garner was recaptured and returned to. prison.
“Murder,” Says Sheriff
Parker was transferred to East ham from Huntsville Prison a month ago. It was his duty to care for the bloodhounds and have them ready to hunt for escaping convicts. He was leading a pack of dogs ‘when he found Frazier Wednesday. Sheriff Maples, who was a short distance away, told the Grand Jury he saw Frazier walk out from behind the tree and offer to surrender, but that Parker shot him down and then killed. Raymond Wilkerson, 24, who was with Frazier. “It was cold-blooded murder,” the
Parker waived |
cre: had been unconfirmed res
Kidnap. Suspect. Dies
From G-Men’s Bullets
GRAND RAPIDS, Minn, Sug. 19 (U. P.).—Otis J. Meredith, 2
day when he attempted to escape from G-Men who had sought to question him about the kidnaping of a St. Louis couple, died early, today at a hospital -He was wounded when the G-Men
John Couch, 23, sis 2n | ex-convict, at a Northwoods hi They readily 8 hjgeont: they were, the. men who had abducted Daniel Fahey Jr, 31, an architect, and Peggy Gross, 23, while the couple was seated in Mr. Fahey’s auto on the outskirts of St. Louis last Saturday night.
LEGION OFFICIAL TO ADDRESS CLUB
H. 1. Plummer, assistant national
was to speak to members of the Optimist Club at the Columbia Club at noon today. He was to discuss “National Activities of the American Legion,”
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PITTSBURGH, Aug. 19 (U. Py — Lawrence ‘Jaffe, 38, of Cleveland, was sentence of because
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{ trick” when he stole a $125 stock ||
certificate and money orders from his attorney, Milton Sussman, who previously had won him a parole after he served 90 days of a sixmonth sentence. “I don’t know why I did it, but I am not a criminal,” Jaffe said. He also admitted making a purchase of merchandise under Attorney Sussman’s name,
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