The Birmingham age-herald., 1908-07-28
IS RATE ADVANCE
 FULLY JUSTIFIED?

Washington, July 27-The interstate commerce commission today issued a statement to the effect that without warn ing for the filing Of formal complaints it will institute an investigation Of It's motion for the purpose of determining whether or not advances in freight rates are justified.
 '''rhe commission" the statement says ''has no authority to suspend a proposed advance in rates and can order a reduc- tion of the advanced rates only as the result of an investigation after the ad- vanced rates have become effective, but the commission while it could make no effective order prior to the actual ad- vancing of the rates has almost unlimited power of investigation. and it is under stood that if the tariffs that are tled with the commission show general ln- creases. the commission without waiting for the filing of formal complaints VIII institute an investigation of it's own mo- tion for the purpose of determining whether the advances are justified.
 .0The commission is having close check made of all advances in freight rates. The commission, of course mas no formal information of the proposed advances until they are set forth In tariffs, which are required by law to be filed with the commission 30 days in ad- vance of their effective dates. So far the principal advances disclosed in the tariffs filed are in the rates on packinshouse products, grain and grain products rom Ohio river crossings to southeastern ter ritory, ranging from ? to cents per It" pounds, according to the commodity; rates on sugar from Atlantic seaooard points and New Orleans to Chicago, Du- luth. St Paul and other northwestern points of ? cents per 100 pounds; class rates from Mississippi river points and Kansas City to Texas common points, ranging from 10 cents on first class to cents on the lowest class
 There is much interest in the action by Judge Speer of the Southern judi cial district of Georgia granting pre- liminary injunction restraining the Atlantic Coast Line, the Louisville and Nashville, the Nashville, Chattanooga and St. Louis, the Cincinnati. New Or leans and Texas Pacific and the South ern Railway companies from putting into effect on August 1 the increased rates on shipments Of staple prouucls from western to southern points,
 In 1903 Judge Speer took the same course in relation to the increase Of cents per hundred pounds on yellow pine by the Southern railway and south western carriers, including the Southeastern Freight association. Tue advance was on rates from Georgia and Chattanooga to Cincinnati and other points on the Ohio river. The ln- crease was promulgated by the carriers to take effect April 15, 1903, and would have become effective except for the temporary injunction granted by Judge Speer April IA. On May Is the court dissolved the temporary injunction and withhe1 further action until the case could be determined by the interstate commerce commission.
 The court placed the carriers und IT bond to refund the overcharge should the com1Hssion decide that it's increased rate was unreasonable and the new rate was then allowed to go into ef- feet The commission decided in favor of complainants, the railroads refused to obey their order and Judge Speer sustained the commissions decision aud enforced it's order favoring the lower rate.