Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-05-05
Will FIGHT RATE BOOST
Railroads Claim Action is Nee
essary to Meet Business and
Labor Conditions
ROADS FEAR PUBLIC OPINION
Declaration That Tariffs Must Raise
Many Millions More in Revenues to
Be Contested by shippers-Manaeer
Plan Supreme Test to Upset Old
Rates,

| Chicago. May 5.--Eastern railroads
in freight rates which will swell their
annual gross revenues by an estimated
| sum Of at least 500, 900, 900.
| This vast amount, and possibly more.
| will not be added to the Golfers of the
| carriers without most determined
| struggle between the railroads and
the shipping public, with the interstate
| commerce commission and possibly the
| courts as the forums. The decision
| to increase all freight rates an aver
age of 10 per cent was reached after
| numerous conferences between eNecu-
| tive and traffic officials, followed by
| conferences between eastern railroad
presidents. Two dates have been Sc
| lected for making the advances eff
| fective. On July l there will be a gen.
eral advance OF from to 10 cents per
| pound in all of the "class" rates. and
| on August l all of the Commodity
rates except four will be advanced a
| maximum of 40 cents a ton.
| The proposed changes will be the
! first advance in rates of this character
in the history of American railroads.
| will disturb the rate adjustment thru
out the country and will change a
rate basis which has existed for the
past seventeen years. Its effect
| therefore upon the general bus
oc f1I tn ma
marked.
1t Is understood that the action of
the eastern roads precedes by short
time similar action on the part of all
| the railroads in the United States. In
! fact. the southeastern roads already
/ have decided, it is claimed. to follow
the example of the eastern lines. The
basis for the eastern increases will
be an increase in the rates between
New York and Chicago. both east and
west bound, but the territory directly
affected lies east of the Mississippi
river to the Atlantic seaboard and
north from the Ohio river to the Ca
madam border. The roads west of Chi
cago to the Mississippi river had no
! voice in the movement in which they
are forced to acquiesce because of the
general geographical division of terri
tory for rate-making purposes.
Hold Key to Situation.
The territory above described is
known. in the railway world as of
fetal classification territory" and what
is known as the Official classification
of freight governs in all of its broad
expanse. 1t is the territory which holds
ho I.oy tn tl1e pa 10
United States. for in it originates more
than two thirds of all the tonnage car
ried by all the railroads More than this
the railroads in this territory enjoy
more than one-half of the total rev.
enue of all the railroads in the United
| States.
The decision to increase rates has
been made by the railroad magnates
with fear and trembling. Will the peo-
pie stand it or will public opinion
swamp them at the very outset? is the
question that is being whispered in the
secret councils Of the men who control
the great majority of railway mileage.
1t is to be a supreme test and care
full and exact preparation has been
made to defend the drastic action from
all attack.
Consumer to Bear Burden.
How will the purposed increases. in
Guiding as they do all Of the necessities
and all of the luxuries of life all of the
raw material which enters into man
ufacturing and all Of the finished prod
ucts, affect the cost of living? 1t seems
certain that the experience of the past
that the shipper will not stand all the
advance. If any, but that he will place
the burden upon the shoulders of the
consumer
But the railroads, stampeded by
falling revenues and increased loss of
operation. feel they are between two
horns Of a dilemma-increased rates or
decreased wages. They say they want
+ to know If the people will see the rail-