Monday, Nov. 09, 1936

Store-to-Door (Concl.)

In 1920, Class 1 U. S. railroads carried 53,202,296 tons of less-than-carload freight shipments. By 1935 volume had fallen 74% to 14,036,154 tons. Chief reason was the competition of highway trucking. Truckmen claim that railroads are foolish to bemoan the decline because the roads must handle such freight at a loss anyway. But railroadmen want all the business they can get. Last January, in an attempt to recoup, railroads in the West and Southwest got Interstate Commerce Commission approval for a "store-to-door" service. At both ends of the rail haul the roads furnished trucks to pick up or deliver freight free. There was no effective opposition to the plan. Last April the major Eastern roads started to follow suit. But on the day the new service was to begin, so loud were truckmen's howls that the I. C. C. hastily suspended permission (TIME, April 13).

On shipments whose tariff was at least 30-c- per 100 lb., the Eastern roads had offered free pick-up & delivery. They also offered shippers who handled their own pick-up or delivery a 5-c--per-100 lb. discount. "Rebate!" screamed truckmen. After a month's cogitation, the I. C. C. decided in favor of the railroads, except for the rebate clause. When truckmen still yowled, this permission also was suspended.

Last week the I. C. C. finally made up its mind. On shipments whose tariff is a minimum 45-c- per 100 lb. all railroads east of the Mississippi and north of the Ohio may provide free store-to-door service, offer the 5-c- self-delivery discount. Key to the decision--a signal victory for the railroads--was the discovery by the I. C. C. that less-than-carload shipments had risen briskly in the West and Southwest, thus proving that the public wanted the service.

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