Evening Star Newspaper, August 5, 1933, Page 1

‘Temperat tures—Highest, ; lowest, 60, at report on page "TRUC | C. C. REFUSES GUT IN FREIGHT RATES ASKED BY INDUSTRY AND FARM LEADERS Denies Petition Claiming Level Is Out of Line With " Other Costs—Cites Present Traffic Volume as Evidence RAILROADS SAY SLASH WOULD MEAN COLLAPSE Oould Not Pay Interest and Rental Charges on Smaller Income, Executives Declare — Recent Commodity Price Rise Held Not to Be Controlling Factor. By the Associated Press. The Interstate Commerce Com- mission today refused to grant a general reduction in railroad freight rates. The commission held that exist- ing freight rates and charges, in the aggregate, “aré not shown to be unreasonable.” The action was on a petition filed several months ago by the National Grange, American Farm Bureau Federation, Farmers’ Co- Operative Union, National Coal Association and the National Lumbermen’s Association. Other organizations later joined in the request. The petition was part of & campaign by basic industries to bring freight rates down to what they regarded as the general level of prices. Cite Other Cost Cuts. It asserted all other costs of doing business had come down, but that freight rates remained at the prosperity level. On the other hand, the railroads as- serted, if rates were slasted many of them could not meet their interest and rental payments and some would forced to bankruptey. The roads contended that even with the freight bill surcharges authorized by the jon in October, 1931, many carriers had been unable to meet their obligations. The commission today said the pres- ent rate level was not depressing the VOIIII:I:' of ml:' :udu.l::‘- :etnthel pountry as a whole an “general yate reductions would not stimulate the aggregate volume of traffic by rail- road except s0 far as they would tend to recover traffic from competing forms of transportation.” [ held that “after al- iy pees he fecight Tate level 1a es. e freigl ral vel still rel“llvel)l' higher than the ce level.” u"l%!: commission found, howéver: “That the vaiue of lxcxmd eu;_od!mt‘.i‘fi; trans: ported is one factor g Tea- sonable rates, but commodity prices alone are not controlling. Cite Competition Losses. “That the earnings of rail carriers have been greatly affected by loss of trafic to motor and water carriers and by reduced rates to meet competition of such carriers. “That the net revenue of the rail earriers in 1932 was the lowest in many , being only approximately half E{.o( 1921, a depression year, and that after making full allowance for the recent upturn in the volume of traffic, 1f rates in general were lowered as much as 10 per cent the net revenue in the near future wou’:i probably fall short of meeting fixed charges. “That general rate reductions, by still further lowering the revenues of the rail carriers, would threaten the continu- ance of adequate railroad service, and, by preventing maintenance and ment. ~ Preservation Held Vital. “That tion of an adequate railroad trm:atMn machine is more important to the country than lowered freight rates. here is not sufficient evidence ableness of rates on parti modities or descriptions of: traffic. Rate revisions must be continued without abatement to meet new conditions’ Rate peaks must be retained where justified and cut down where found unjust. g ergnis com t to the 2 - cha subjec b At el work, would tend to increase unemploy- - ", 5:30 am. today, A-5. E TO Forced Down | LIEUT. COMDR. T. G. W. SETTLE. SETTLES FLIGHT FOILED BY VALVE WASHINGTON, D. C., BSA WITH SUNDAY NORNING EDITION DAY, AUGUST 5, 1933—TWENTY-TWO PAGES BAN STRIKES PUT IN EFFEC TWO FRENCH PILOTS HEAD FOR ATLANTIC ON FLIGHT T0 INDIA Lieut. Rossi and Paul Codos Hop Fron/\' U. 8. for Dis- . tance Mark. STRONG FEAR OF CRASH AT START IS ALLAYED Take-off Perfect—Airmen Leave Landing to Fate, but Aim for Karachi. BULLETIN. HALIPAX, N. 8., August 5 (F).—The monoplane carrying Lieut. Msurice Ross! and Paul Codos for s trans- atlantic distance flight from New York was “near Sable Island” at Stratosphere Balloon Up but o Ten Minutes—Lands in Railroad Yard. By the Assoclated Press. CHICAGO, August 5.—Man’s latest attempt to plerce the earth’s atmos- phere at a greater height than ever be- fore ended abruptly early this morning when Lieut. Comdr. T. G. W. Settle came to earth in Chicago railroad yards. A Jeaky top valve was blamed. 7 The huge balloon, the Century of Progress, in which he hoped to break existing altitude records and obtain valuable scientific data heretofore un- known to man, descended within about 10 minutes after the hop-off at Soldier Fleld. Lieut. Comdr. Settle was not injured and the balloon, which had risen to a | %ervers to height of approximately 5,000 feet, was apparently not seriously damaged when it landed in the yards of the Chicago, Burlington & Quincy Railroad at Four- teenth and Canal streets. There was & small dent in the bottom of the gon- be | dola, however, and it was possible that the bag itself was damaged. Put in Old Freight House. An old freight house was used to house the huge balloon. While crowds milled about the de- flated bag early today after its unex- pected descent the ground crew, aided by railroad employes, loaded it with the gondola on a railroad car and switched it into the freight house. It will remain there until officials of a Century of Progress and other spon- sors of the flight decide whether to send it back to Akron, Ohio, for possible repairs or to keep it here for another atterhpt. Lieut. Comdr. Settle hoped to make another try at the flight. Even though the bag and gondols, in which the delicate instruments for sci- ’, WAS perfect ered as the plane soared away over Jamaica Bay. The Prenchmen entific observation were stored, prove|with not to have been damaged, the loss of the hydrogen gas was considerable. The balloon had a capacity of 600,- and the Comdr. 000 cubic feet, gas, 3 Settle said, was valued at $10 per 1,000 cubic feet. ¥ Farther Inspection Needed. have checked for a favorable occasion.” His wife was among the first to reach his side and kissed him repeatedly, Jjoyful that he had escaped unscathed. “I arose tb an altitude of about 5,000 feet,” Settle said, “ of which , after his takeoff at (Continued on Page 2. Column 3.) PEACE MOVE DIVIDES _ Pair Claiming to Have Seen Kill- ing Tell Story as Man Goes HOLLYWOOD STRIKERS | 5o Electrical Unjon Confers in Effort to End Dispute, Exclusive of Other Group. By the Associated Press. . HOLLYWOOD, Calif., August 5—A unfon of electrical men today was try- ing to settle Hollywood’s two-week-old strike to the exclusion of another union which called it. e ELECTROCUTED MAN DECLARED INNOCENT feieff ; E i E g i 3¢ 58 it L g 3 g9k 8 q " i Pl 8 0 ] 3 g IS —F THE MODERN VERSION OF “THE GOOD STORY.” Soviet Cuts Terms 0f71,000Prisoners For Excellent Work By the Associated Press. MOSCOW, August 5.—So pleased were Soviet leaders with prisoners’ work on’ new White Sea-Baltic Canal that 59,000 pri- reduced U. 5. JOB REHIRING 1S LIBERALIZED Agencies Can Ask for and Get Eligibles Without Ref- erence to List. - MARKET BOMBING SUSPECT IS HELD Somerville, Mass., Man Is Charged With Flooding Ex- \ change With Fumes. ment registers stood in the way of such action, mo person reinstated being eligible for a position unless there was of their qualification on the re- BE Il 8%y -uu‘du.m- > A8 10 ‘the Deper ='h.wll. HULL BACK INU. GOES TOHYDE PARK Tells Reporters He Has No Intention of Resigning “Now or Hereafter.” By the Associated Press. NEW YORK, August 5.—Secretary of the Summer White House in an auto- ‘mobile. Go Into Conference. Arriving early this afternoon, he went into immediate conference with the President. QUEZON THREATENED Philippine - Senate President Gets oAt fil bl Eu g I i PRESIDENT APPROVES CAPITAL AND LABOR - PEACE AGREEMENT Tribunal of Seven, Headed by Senator Wagner, Appointed to Direct National Effort. CHIEF EXECUTIVE HAILS “ACT OF ECONOMIC STATESMANSHIP* Existing Working Agreements Expected to Stand Until Codes Are Adopted d for All Industries. By the Associated Press. . HYDE PARK, N. Y., August 5.—President Roosevelt today ape proved a joint declaration for industrial peace proposed to him by leaders of industry and labor in an unprecedented effort to end dise putes. The President promptly appointed a board of seven headed by, Senator Wagner, Democrat, of New York, a labor authority, to ade minister the national peace effort. N Other members of the board are: William Green, president o§ the American Federation of Labor{ Dr. Leo Wolman; John L. Lewis, president of the United Mine Workers; Walter C. Teagle, president of the Standard Oil of New, Jersey; Gerard Swope, president of the General Electric Co., and Louis Kirstein, Boston merchant. Roosevelt Issues Statement. The posal was sent to the Summer White House by the A\ivlmlale ard of the Industrial Recovery Administration which in- cludes spokesmen of industry and labor. Mr. Roosevelt issued the following statement: “Of importance to the recovery agement and labor for industrial peace, to me for apfgovn With compel logic, it calls upon every indi- vidual in both groups to avoid es, lockouts or any aggressive action during the recovery program. ¢ _“It is & document on .a par with Samuel Gomj ' memorable wartimd status quo in labae disputes—and in addition to the signse. Federation of Labor it carries the nature of every great labor leader | advisory ha:‘& of the Recovery | ministration. It is an act of it %o the public consciease. Industrial and Workers’ Ad- visory Boards Join in Mak- ing Vivid Appeal. i i I s ] i 5 g & Preparation of the appeal was com- mented on by Hugh 8. Johnson, the in- dustrial administrator, EEEE poe2 4 el FRENCH LOAN ABSORBED