New-York tribune., 1910-08-19
HOPE FOR COMMUTERS
Interstate Commerce CommIS-
sion to Act on New Rates.
so FIGHT is NOT YET LOST
Chairman Knapp Says Report on
Matter Should Be Ready
by November.

Commuters may win after all in their
fight against the new and much higher
railroad rates that went into effect on
August ]. it was learned from authentic
source yesterday The new passenger
schedules filed last spring will receive an
exhaustive examination from the Inter
state Commerce Commission at the earliest
possible time that ruling may be
made not later than November I. This
will be no superficial investigation. it was
said The first had to be, and 1t was neces-
sary to accept the figures submitted by the
railroads.
As recently as June 25 Martin a. Knapp
chairman Of the commission. said at Wash
ington to d committee from New Jersey
representing the many thousands of com
nluters living there:
Speaking for p,yself, I do not think it
would do your people any good for this
commission to enter an order that imme-
diately might be enjoined by the courts
Personally. 1 have grave doubt about our
Jurisdiction over Communication rates.
1t was this grave doubt that led to the
hopelessness that followed the decision of
the commission not to interfere. The lat
ter investigated the matter as much az
possible under the circumstances. II
caused postponement OF the time OF
going into effect from July until August 1,
and went over the prirna facie evidence
submitted by the railrads. The latter
seemed to show complete justification for
the rate increase, and no checking action
was taken by the commission.
I'VE could not do otherwise, Chairman
Knapp said recently TO a reporter for The
Tribune, but we shall get the real evil
dence in the case now, and under the law
make a finding on the facts
Then the commuters need not resign
themselves to the continuous payment of
the increases, without hope of relief" was
asked
mo; but an investigation does not neces-
sarily mean that the old rates will be re-
stored. The report on the matter should be
re ady by November 1, but 1t may be made
earlier"
Under the new law the continuation OF
the advanced rates will depend upon
whether the Interstate Commerce Commits
sion believes that they are reasonable.
There is no fixed criterion as to what rea-
sonableness in railroad rates is. whether
for freight or passenger transportation.
The commission will have to make the
most extensive ruling ever made before on
''reasona bleness'' in deciding the case of
the commuters.
The conditions governing reasonableness
in the past have been competition, earnings
on capital stock. past experiences and
other conditions governing transportation.
The earnings on capital stock are gener-
ally determined by a squeeSing process, in
which the capital stock dwindles amazing
ly as the water trickles out of 1t. In the
past the decisions have fixed the reason
abeness between two points. but have ex-
pressly stated that no other case should
be Judged by them. each case to stand
on it's own foundation.
The railroads will fight order to re-
duce the communication rates, if one should
be forthcoming. The decision II " as said.
would consider the weight OF the many
years of profitable traffic under the low
rates as a great factor in determining
the evidence obtained. TIE railroads con-
tend that they filed the new rates before
the new law regarding ''reasonableness
went into effect.
counsel for the government said yes
terday that commuters had good reason
To keep up hope for a revision of the new
rates. as the commission would give the
subject the usual care bestowed upon
cases that come before 1t, and that II the
decision should be that the rates were
reasonable the evidence would satisfy the
most obstreperous commuter.