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The Record-Eagle Dec. 29, 1978
Rate hike approval may hurt local line
Washington - The Ann Arbor Line's bid to build up business by holding down prices will be weakened if the Interstate Commerce Commission (ICC) approves a Conrail rate hike petition.
On Dec. 11 the ICC allowed the rail industry to raise its ratess, but the Ann Arbor chose to stick with the old rates.
Under federal rail rates, railroads which connect with the Ann Arbor must continue to charge the old rates on shipments which cross both their routes and the Ann Arbor's.
Conrail doesn't want to be held to the so-called "joint" rates with the Ann Arbor.
For Ann Arbor customers whose goods must travel part of the distance on Conrail lines, approval of the higher rates would mean lower savings than Michigan Interstate Railway Company, which owns the Ann Arbor route, had hoped to offer.
According  to an ICC spokesman, it is common for connecting railroads to agree to charge a common price for goods routed jointly across their lines.
The shippers are presented with one bill and the railroads which handled their goods work out an equitable sharing of the revenue.
Michigan Instate angered several railroads it does business with by holding the line on rates charged for 22 high-revenue commodities when the rest of the rail industry went for higher tariffs.