Omaha daily bee., 1908-06-09
PRESENT RATES WILL STAND
Railroad 0fhoiAls Agree Raise Would
Be Bad Policy.
BUSINESS STEADILY IMPROVING
shippers Have Been senainG Protests
~ Wholesale 60 Interstats conA-
merce Conamission, witch
Cannet Act New.

WASHINGTON. June' S.-No general IN
creass In freight rates 10 likely 70 be made
by { the railroads OF the country In the
near future. u II IL made at all. Certainly
nothing will be done before autumn, and
Il Is unlikely now that anything approxi'
mating a general increase will be attempted
then. "o'
At a recent meeting OF presidents and
operating officials OF important railroads
held In New York n was the consensus OF
opinion that II would be undesirable, II
not absolutely impracticable. TO put into
effect at this time an increase Of ffeieht
rates. Opinions at the meeting was d.
vided, but the majority ineliped to the view
that Il would be bad policy and bad busi-
ness at this juncture to attempt IN In
crease OF rates.
1t was pointed out that the proposed In
crease in a time OF depression would tend
rather TO increase freight ~staghation than
to stimulate freight movement. Such a re-
sult would be OF only additional d~issdVan-
tage to the carriers, the opinion being gem
erRl that It would not induce increased
revenues.
Railroad Business Improving.
Most Of the officials who attended the
meeting indicated a belief that railway
business conditions were improving. The
freight revenues, and the passenger rev.
enues. too, show a notable increase IN
the last month over the preceding three
months, and a general revival OF business
In all industrial branches was reported
from every part OF the country.
The Judgment was expressed that II bus
mess conditions did not continue to show
Improvement 1T would be necessary for
the railroads to adopt some method OF
protecting the Interests OF their stock
holders. Only two methods suGgested-an
Increase OF freight rates and "a decrease
in wages OF employees. 1t Is quite certain
that neither will be resorted to before the
fret of next October and important Of
ficials believe II will not be necessary even
then to resort to either of the methods
named.
In some u~naccountable way the report
became general among shippers, particu-
larly those of the middle west and south.
that the president-and the Interstate Com
mtrce commission had given their approval
to the suggested increase In freight rates.
Regardless of the impossibility Of such APP
prevail or the inetficacy OF 1t, II 1t were
given, hundreds OF shippers have written
to the members OF the commission pro.
testing against the purported action OF the
conninisblOn anu mSlsNAuB dNet ne iates
be not Increased. ~
Position of the CommissiOn.
The members have spent a deal Of tim,
trying to set their correspondents right OF
the matter. While the commission has nj
power under the Law 10 prevent the es
adjustment of such rates as the railroads
see fit to put into effect. unless. afte
due hearing, the increased rates should bi
found to be excessive, unreasonable o.
unjust, II would be equally impossible ant
inappropriate for st to give its approval Il
any proposed increase Of rates. The com
mission crosses such bridges as that whei
1t reaches them and not before.
Some rates. in special instances, recent!
have been Increased. that on fresh meat
moving from the north to points in tn
Carolina territory IL q case IN point. ]
little while ago IL was proposed to inereAs
the proportional rates OF paper . cents pc
100 pounds from Wisconsin and Michisai
points to the Ohio river gatewAys. whe
the shipments were destined to CAROLYN
ana other southeastern points. The mem
bers OF the Western Trunk Line assoeia
ton reconsidered the matter, however, an
the Increase will not be made, at least no
for the present.
OF course, when, II ever, the increase @
rates is made It will be very CAREFUL
considered by the Interstate Cominerc
commission, perhaps on it's own i~nitiativ,
without waiting for a formal complain
from shippers.