New-York tribune., 1908-07-19
RISE TN FREIGHT RATES
KNAPP ON SITUATION.
Commerce Commission May act ON
Louisville agreement.

Washington July 1S-The Interstate COM
merce Commission may take action on the I"
creased freight rates agreed to at the meeting
of the Southeastern Freight Association ana the
Southeastern Mississippi Valley Association al
Louisville Yesterday when the tariffs
are filed with the commission by the roads hav-
ing membership in these two ASSOCIATIONS
Action can be taken by the commission on It's
own initiative or upon the complaint Of skip
pers or shippers associations. II The commis-
sion should find that the increase in freight
rates was made through concerted action' ana
that there was evidence that the Sherman anti
trust law was violated,e the attention OF the
Attorney General will in all PROBABILITY be called
to the matter.
In speaking Of the powers Of the Interstate
Commerce Commission in a case where an ad-
vance in freight rates has been made by any
railroad Chairman Knapp OF the commission
said to-day:
.'The railroads must file their tariffs with the
commission with thirty days notice or con-
templated change Changes IN rates between
competitive points must be made simultaneously
by all the roads operating between these points.
This, in a measure, protects the shipper Nheh
railroad files notice Of increase in its freight
rates. the commission can on its own mott IN,
make an investigation TO the reas,nahlen.sS So
OF the advance.
"In the case where the commission acts on
its own motion, however, it cannot issue an
order. II a shipper makes a complaint TO the
commission against railroad. charging an un-
just increase in rates. each side is given near
ing and the commission can then issue an oroer
based on its decision in the case Should 1t de-
yelop that the increase made through con-
certed action the commission would. very likely
refer the matter to the Attorney General. Ihe
Department Of Justice can also call upon the
commission to investigate as to the reasonaple-
ness Of an increase in rates.
The commission would base it's investigation
on the conditions existing on the roads max
ing the increase. considering each case sep
arafely It NAV be found that the roads In the
South would be justified in increasing their
rates while the roads in the Trunk Line Asso-
citation would not have sufficient grounds 1or
doing so In each case the railroads would De
given every opportunity to present their case
While the commission is an administrative poos'
its duties are very analogous to those Oh
judicial body and the same form is useu-d 'o
plaint, an answer and hearing
"1ustifcation for increase in freight rates. II
there is to be such an increase. may De 1ouiu'
at all. only In the fact that Increased COS. Vi
operation and maintenance OF railroads mas
reached a point where reasonable Proi' y"
,nO invested IN them IS Ilot PosSioiS - "
revenue they now receive. In determlhins
whether rates are reasonable careful cons'oera
+,on ia necessary of three factors-that gooo
wages be paid railroad employees, that pteseh.
facilities be kept to SATISFACTORY
standard and that new facilities be provioe' 10
meet every increasing demand for taem.
Charges Of unjust discrimination against san
Francisco in terminal freight charges In faVor
of Portland, East Portland, Ore, ana otnef
competing points on the Pacific Coast were TO-
dav lodged with the Interstate Commerce Com
mission in complaint by the Pacific Coast
Jobbers and Manufacturers Association OF San
Francisco against the Southern Pacific and
Atchison, Topeka & Santa Fe Railway COM
NAMES The complainant declares that the
charge of 81 80 car for the receipt and de-
livery of interstate freight over their terminal
tracks at San Francisco Is unlawful unreason
able and unjust.
Judge Knapp chairman of the commission. to-
day stated that he had not been officially In
formed that the transcontinental railroads will
contest the commissions decision In the lumber
rate case but he has heard in an indirect way
that they were considering such a course.