The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-11-29
Rate LaqU in the Balance
Under Railroads Attack
Carriers Show Growing Dis position Resist Interstate
Commerce Commission Orders and Take Big
Case to Supreme Court.

AS a result OF che business panics OF
! last year, the railroads Of the country
have permitted their equipment TO get
into bad shape, and, according 70 the
Interstate Commerce Commissioners,
there will be big shortage In cars
locomotives, and general rolling stock
| as soon as the revival OF industries Ia
a little further advanced. The same Of
! hcials say the roads propose ts take ad-
vantage OF this situation by making
! sweeping adyarces in their rates.
Il have no doubt" said one OF the
! commissioners, in explaining the situR-
| ton yesterday. that attempt viii
/ be made all along the line TO push up
rates I'm every possible way. The rail-
roads have cultivated the impression
/ that they are not receiving sufficient
money TO maintain their efficiency. and
/ to give good service and pay their stock
1 holders anything. AS soon as business
revives the railroads all over the coun-
/ try are going to find themselves short
/ of equipment
! For the last two years they have
/ bought no rolling stock TO speak OF. and
/ they have not kept their old equipment
/ in repair. The railroad managers will
soon begin announcing that they must
/ get more money TO lay tracks and buy
cars. and that to advance rates is the
only means 20 get the needed cash.
I Whether they viii be permitted to en-
/ force their higher rates is something
| the commission cannot pass upon now.
! Already the advances have begun.
/ The commission has before It at the
( present time one case. which involves
/ an advance in rate in all the Southwest.
Recently disposition has been man
! Tested 10 resist rulings Of the commits
| sion reducing rates. Suits were brought
/ In the case of the lumber rates for the
/ Pacihc case where we permitted an ad-
| vance Of 10 per cent in A large part Of
| their rates. and declined to permit an
| advance Of % per cent. our orders are
being resisted in the case affecting
! through rates from the NIississinnI 10
the Missouri rivers, which were proba-
! bly, the highest and most extortionate
class rates In all the United States.
All the indications point to vigorous
and concerted attempts on the part OF
all the roads 20 advance freight rates
as soon as the conditions Will permit
II.
For years and years" continued the
commissioner. "the railroads have Earn
! q
| return on their property, and the min
ute hand times came they complained
that their property was being conhs-
Gated by Federal supervision OF rates.
The attitude of the roads is entirely
unfair. They do not want to Judge OF
the reasonableness Of d rate by taking
/ into consideration adverse and pros
porous conditions, they want to pick
out the worst time they can find when
! wages are the highest and business
at the lowest ebb. and make that
| standard by which to measure the rea-
sonabIeness Of their rate.
"As / Have stated before, the roads
have allowed their equipment to run
down IN an attempt 20 keep up their
net earnings. Their gross earnings
have fallen of with the slump n in
dustrIaI circles. Almost all Of the roads
have been trying to rebuild themselves
/ out Of their net earnings, and they
have incurred considerable liabilities
on this account. When the traffic falls
off they do not care to let their net
earnings drop and necessarily allow
their property 20 depTeciate."
do YOU think the rate law has cut
down the earnings OF the rOad?''
I think the general effect OF the
acr to regulate commerce has been
| enormously to increase the earnings OF
the roads II has compelled the rail'
roads TO exact tariff rates. It has pre-
vented them from making ali sorts or
| concessions which they formerly grant
ed to shippers in the way OF private
rates and allowing terminal facilities
-. things which they ought not 10 have
done, but which they did in order TO
retain the patronage Of good shippers
TEev do not do this now The amount
paid out in rebates was something
enormous. The Lake Shore people tesu-
fed before US that 1t was per cent
OF their gross receipts.
1.-THE commission has in a few cases
ordered a reduction in the rate. Cen
erallv it has ordered a reduction OF any
considerable amount only TO onset an
advance. That is to say q road would
laa,,anca g rate and complaint being made
1.-THE commission would order the rate
mt hack or would put it one-half back.
The act to T gulate commerce mas IN
creased the net earnings of the roads,
LEGISLATION OF other kinds has decreased
the revenues. There have been a great
many laws which hsge Increased the
cost OF operation, like the safety aprli-
ance law, the sixteen-hour law, the nIiie-
hour laws and the act abolishing grade
crossings.
The new law WORKS about Ike this:
The roads make a dozen advances IN
rates. A complaint is made Of one OF
them. We set that one advance back
The roads howl and declare that we are
reducing their revenues. In eleven cases
we have not touched the advance at all
and the twelfth case we probably have
only half undOne what they Gid, yet
|