The midland journal. (Rising Sun, Md.) 1885-1947, 1908-07-31
PLANS TO PROBE
FREIGHT TRAFFIC
Interstate Commerce Commission
Win Investigate.
CLOSE CHECK OF ALL ADVANCES.
Oficials VIII Not Wait for Formal
Complaints, but Ascertain at Once
If Proposed Advance in Rates IL
Justifiable = Cannot Prevent New
Schedule From Going Into Effect.


Washington, d. C. Especially The
announcement by the Interstate Com
merce Commission that it would con-
slider the reasonableness of rates af-
ter notice of increases by the ship
pers and prior to their filing of pro-
tests is regarded as of widespread
Importance. Following closely upon
the action of Cincinnati shippers APP
pealing to the President to induce
the commission to take this course
1t is generally believed here that the
suggestion calling for the statement
comes from President Roosevelt
Chairman Knapp says that the law
contemplated investigation e the
reasonableness of rates by the COM
mission after they have become effec-
tive, but he thought the commission
might decide that the increase is eff
fcctive after notice has been given by
a carrier and before the new rate ac-
tually goes into effect. The COM
missions statement takes that view
of its powers.
There is much interest in the ac-
ton by Judge Speer, of the Southern
judicial district of Georgia, granting
preliminary injunction restraining
the Atlantic Coast Line; the Louis
vile and Nashville; the Nashville.
Chattanooga and st. Louis; the Gin
cinnati, New Orleans and Texas Pa
cific. and the Southern Railway Com
panies from putting into effect -on
August the increased rates on ship
ments of staple products from West
ern to Southern points.
In 1903 Judge Speer took the same
course in relation to the increase of
two cents per 100 pounds on yellow
pine by the Southern Railway and
Southeastern carriers, including the
Southeastern Freight Association.
The advance was on rates from GeOr-
gia and Chattanooga to Cincinnati
and other points on the Ohio River.
The increase was promulgated by the
carriers to take effect April Is, 1908,
and would have become effective ex-
cept for the temporary Injunction
granted by Judge Speer April IA. On
May 16 the court dissolved the tenn
porary Injunction and withheld fur
Their action until the case could be de-
termiped by tho Interstate Commerce
Commission. The court placed the
carriers under bond to refund the
0vercharge should the commission de-
eide that their increased rate was
unreasonable and the new rate was
then allowed to go into effect The
com mission decided in favor of the
complainants, the railroads refused
to obey their order and Judge Speer
sustained the commissions decision
and enforced Its order fayoring the
lower rate.
"The commission the statement
which was issued Monday says, "has
no authority to- suspend proposed
advance In rates, and can order re-
duction of the advanced rates only
as the result of an investigation after
the advanced rates have become eff
fective, but the commission, while 1t
could make no effective order prior
to the actual advancing of the rates.
has almost unlimited power of In
Yestigation. and 1t Is understood that
II the tariffs filed with the commits
sion show general increases the COM
mission without waiting for the filing
OF formal complaints will institute an
Investigation on its own motion for
tho purpose OF determining whether
or not the advances are justified ]
Such general information would en-
able 1t to handle very promptly any
complaint which may be filed against
advanced rates.
The commission Is having close
check of all advances in freight rates.
The commission, of course, has no
official information of the proposed
advances until they are set forth in
tariffs which arc required by law to
be filed with the commission 80 days
In advance of their effective date.