With labor and material costs rising and revenues dropping since V-J day, railroads have been struggling to keep their heads above water. Last week the Interstate Commerce Commission threw them a lifesaver: a 6% increase in freight rates, effective July 1—except for certain basic commodities such as products of agriculture, slag, gravel, etc. on which the boost was only 3%. To make up for their lower rate of earnings, Eastern railroads were allowed a further increase of 5% on all but anthracite and bituminous coal, lignite and iron ore.
The roads had asked for a 25% hike, told ICC that...
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