Rail Rates Down

Rail Rates Down (Cont'd)

Ever since the Interstate Commerce Commission ordered a radical cut in U. S. rail rates (TIME, March 9), all the Eastern lines except the Baltimore & Ohio have yammered that the new rates (2-c- per mi. in coaches; 3-c- in Pullmans) were unfair, would do the roads more harm than good. When the ICC turned a deaf ear to all protests and ordered the new rates into effect June 2 as scheduled, the Eastern group decided on a court fight. Fortnight ago the B. & O. declared it would lower its rates anyway.

Last week the other lines announced they, too, would cut their rates June 2 in order to keep on an equal competitive footing with the B. & 0., but that they would simultaneously bring suit against the constitutionality of the order. Their claim: The ICC order is an unwarranted invasion of managerial privilege.

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