Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-07-19
COMMISSION MAY ACT
New Freight Tariffs Put Rail-
ways in Jeopardy.
PROSECUTION MAY ENSUE
Reference to Attorney General Pos
sible if Pool" Is Inferred.
Chairman Knapp Says Commission
May Proceed on Own Initiative or
on Complaint Of shippers.

The interstate commerce commission
may take action on the increased freight
rates agreed to at the meeting of the
Southeastern Freight Association and the
Southeastern Mississippi Valley Associa-
ton at Louisville. KY, Friday, when tho
new tariffs are filed with the commits.
sion by the roads having membership in
| these two associations.
Action can be taken by the commiss
sion on its own initiative or upon tho
complaint Of shippers or shippers assoc
Citations. II the interstate commerce COM
mission should find that the increase
in freight rates was made through con-
certed action, and that there was evil
dence that the Sherman antitrust law
was violated. the attention Of the At.
torney General will probably be called to
the matter
Powers Of Commission.
In speaking Of the powers of the inc
terstate commerce commission in the case
where an advance In freight rates has
been made by the railroads. Chairman
Knapp of the commission said today:
with the commission. with thirty days
notice Of a contemplated change. Changes
In rates btween competitive points must
be made simultaneously by all the roads
operating between these points. This. In
| measure. protects the shipper.
when a railroad files notice Of an In.
| crease in its freight rates the commits
| sion can, on It's own motion, make an
| investigation as to the reasonableness OF
| the advance. In the case where the COM
mission acts on its own motion, how
ever. 1t cannot issue an order.
IF a shipper makes a complaint to the
commission against railroad. charging
an unjust increase in rates. each side Is
OILY han rfveY H.
then issue an order based on it's decision
In the case
SHOULD it develop that the increase was
made through concerted action, the COM
mission would. very likely. refer the mat
ter to the Attorney General. The Depart
ment Of Justice can also call upon the
commission to investigate as to the rea-
| sonableness Of an increase in rates.
Justification for Increase.
1.-The commission would base its investi-
CATION on the conditions existing on the
roads making the increases. considering
each case separately. 1t may be found
that the roads in the south would be justi-
fed In increasing their rates. while the
roads in the Trunk Line Association would
not have sufficient grounds for doing So
I'm each case the railroads would be
given every opportunity to present their
case. While the commission Is an admin
istrative body. its duties are analogous to
those of q judicial body, and the same
| form IL used-a complaint; an answer. and
a hearing.
| Classification for increase in freight
| rates, If there Is to be such an increase,
may be found, IL at all. only In the fact
that increased costs of operation and
maintenance Of railroads have reached a
point where reasonable profit on money
| invested in them Is not possible from the
| revenue they now receive.
| I'm determining whether rates are rea.
sonable careful consideration is necessary
Of three factors-that good wages be paid
| railroad employees; that present transpor-
| tation facilities be kept to q satisfactory
| standard. and that new facilities be pro-
vided to meet ever-increasing demand for
them
Judge Knapp stated that he had not
been officially informed that the trans
continental railroads will contest the COM
missions decision In the lumber rate
case. He has heard in an indirect way
that they were considering such course.