AMERICAN RAIL COMPANIES “FLAT BROKE”

Chronicle (Levin), 8 September 1947, Page 3

AMERICAN RAIL COMPANIES “FLAT BROKE”

KEW YORK, Sept. 5. American railway eompaiiies iiied a request with the Interstato Commerce Commission today for a further 10 per cent. iucrease in freight rates to ofl'set tlie wage increase of 151 eents an hour recently given to non-operating employees. Mr. H. K. Morris, president of tlie Houthern Railway Company, said: "The railway companies are 'flat broke ', and unless they are permitted to ruise fares and freights tliey will face nationalisation. They will be on their wav out as Exhibit A of Anierica's free enterprise systein. ' ' Demanding uage increases and changes in operation rules, 1800 employees oi' the United States Steel C.orporation Union Kailioad Company struck today, forcing the virtual closing of four ]>lauts produciug 20,000 Iona of steel a day. Septem ber eorn sold in Chicago today for 2521cents a busliel — an all-timo recor.d. Food prices continue to rise iii many paris of the United .States. l'rime ribs of beef sold today at up to 77 eents a pound; bacon, 75 centa; butter, 01 centa; bread, 15 cents a loaf; milk, 2.1 centa a quart; eggs, about 00 cents a dozen. The president of the C.I.O. United Automobile Workcrs (Walter Reutlier) sent a letter to President Truman urging liim to call a special session of Congrcss and to recommend the immediate restoration of priee controls on food and all other basic commodities. The letter added: " l/uless we solve our owu problem of inOatiOSn and: searcity, ever iner.eUsing prices, JecTea^ing purcliasing power and scandaloukly liigh proiits we cannot hope to giv.e Europe the lielp it needs and raust lidve. "