Shippers Face New Freight Tax

Hopes of northwestern fruit growers that railroads would not apply a 15 percent increase to fruit products were shattered with the receipt of supplementary tariffs providing for the increases. The new rates, effective July 1, hit every commodity. As estimated, the increased freight rates on apples to points east of the Missouri River represent an added burden of three-quarters of a cent per box on the grower. Growers have not abandoned hope and will be represented at a hearing before the Interstate Commerce Commission on May 23. Carriers claim the increase is necessary to save them from operating at a loss, but local producers fear the impact on their ability to market their tonnage profitably.