Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-12-06
LOWER RATE JAN. |
Railway and Warehouse commis-
sion of illinois at Last
Acts.
CUT WILL BE 20 PER CENT
Roads Threaten TO ReScind Comm odity
Rates to Keep Up Rev
enues.

| Springfield. H.. Dec. 6.-The rail
| roads of Illinois are threatened with 4
reduction in revenues of between 81
| 600. coo and 5000 900 by an order OF
the railroad and warehouse commission
made here yesterday afternoon requir-
| ing 20 per cent horizontal reduction
in all freight rates
This order of the commission *
made effective Jan. l. and has the full
approval of Gov. Deneen, who is said 10
have urged the commission TO action
after that body had remained inactive
for nearly four years. Owing also 10
the intervention of the governor. no
change was made in passenger rates.
but the commission reserved action up
on them until the railroads shall have
been given "a hearing
Roads to Fight Cut.
Traffic officials declare that the state
commission has welded a two-edged
sword and that the railroads do not
purpose taking an annual loss of mil
lions in revenue because of public de
mand.
In the end. according tu the agreed
plan of the railroad managements OF
lue tullt oidN's AAlC NiAi ibpNio "A't f''s
any loss they may occasion by their
appeal to the commission and possibly
more. What the railroads purpose do
ing. in short is either TO cancel all of
the commodity rates within the
state or a sufficient number of them
wholly 10 recOup themselves for any
loss which may be occasioned by the
carrying out of the commissions or
der
Regarding the power of the railroads
to do this there is believed 10 be no
question. The matter has been dis
cussed frequently in traffic meetings
and the plans are well laid.
Between now and Jan. l the traffic
officials of the various roads will have
the commissions new schedules check
ed in. and upon the conclusion of this
work it can be determined definitely
what the difference in revenues will be.
To Cancel Low Rates
Then Il Will be an easy matter to
cancel enough commodity rates TO
make up the difference If extreme
measures are taken and practically all
commodity rates are cancelled, the rev
enues of the railroads within the state
will be increased fully $2O,O00OOO an
nually, whereas the loss occasioned by
the commission > order cannot exceed
s.. 900. 600. and may not be more than
$4,000, 900.
1t is estimated that about 10 per
cent of the railway tonnage in Illinois
is carried on commodity rates which
average Is per cent lower than the
commissions distance tariffs. The
traffic carried on commodity rates
however. brings the railroads fully 30
per cent of their revenue.
The earnings of the railroads on
their lines within the state is about
$Sf 1000. 900. If one-half of this is done
al the commissions rates the loss to
the railroads might equal $4,000. 900.
On the other hand cancellation of
the commodity rates on which the
other s42 100000 worth of business is
done would result in a 80 or 30 per
cent increase in revenue from that traf-
fc.
Such action by the railroads would.
therefore. leave them with an estimat-
ed net gain in revenue of at least S12.-
600 600
II was the threatened withdrawal of
these rates which caused the Illinois
Manufacturers association to array its
forces upon the side of the railroads
in the battle against rate reduction
which took place before the commits
sion.
Naturally. the merchants In the larg-
or manufacturing centers have been
more favored with commodity rates
than those in the smaller places. Tn
der the new schedule the Illinois dis
tance tariffs will be slightly lower than
those OF Iowa. Ohio or Michigan and
slightly in excess OF those in Indiana.
where a commission does not have the
power TO dx maximum rates.