New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-15
FREIGHT RATE HEARINGS
interstate Commission to Open
Session in New York To-day.
CARRIERS ASK BIG ADVANCE
Will Average is Per Cent
Operating Expenses Have In
creased Greatly, They Say.

WASHINGTON Aug 14-IncreaSes IN
freight rates aggregating, according TO
estimates made by the Interstate Com
merce Commission. $500 100000 annually IN
official classification territory-that part OF
the country north of the Ohio and potomac
and east OF the Mississippi River-wiu De
considered at a hearing to be begun to-
morrow morning in the Custom House IN
New York City.
The likelihood is that the formal hearing
Of the evidence in the case, the most I'M
portant to the people that the Interstate
Commerce Commission has yet undertaken,
will be postponed until later date, prob
ably September {, because the railroads
are not fully prepared to proceed. The
tariffs involved have been postponed until
November 1. Meantime. the existing rates
are in effect. II will make no difference
TO the commission, therefore. whether the
roads are prepared to go on with the hear
ing or not. Such delay as may result from
postponements will operate against the
railroads
According TO unofficial figures made by
the commission. the advances shown by the
tariffs filed by tie lines in classification
territory averaged about Is per cent over
existing rates The increases apply to both
class and commodity rates. Taking the
present volume of traffic as basis, an in
crease Of IS per cent would amount TO an
advance for all the railroads in the entire
territory OF approximately 500 100000 a
year
This advance is distributed among 415 diff
ferent transportation lines, being aver
age Of something more than s10oo,00o year
each Of course the total amount of in
crease will be distributed propcrtionately
TO the tonnage Of freight handled by the
various roads, the increases in the rates
being substantially the same in all cases
Reports received by the commission indi-
cate, by an analysis. that the increases in
operating expenses of the roads during the
last ten years have been very heavy. The
greatest single item of increase is in the
cost of labor, which is estimated to be
about 20 per cent of the expense of opera
ton. In classification territory the increase
In the cost of labor. according to the re-
ports. has aggregated. during the last de-
cade. about $4,000 900 q year approximate
" $40 Ooo. 600 A year having been added dur
ing the last few months. Every other item
of expense of operation has increased dur
ing the last decade. so that. in the matter
of operation alone the railroads OF classi-
nCSton territory are paying out HedtiS
$500. 90 year more than they paid out
ten years ago.
It will be necessary for the railroads
under the existing law to justify their ao-
varces by affirmative proof of their ne
cessity. In other words, the burden OF
proof of the reasonableness of the increases
will rest on the carriers 1t is the purpose
Of the commission to take purely judicial
view of the questions presented. It viii
act in no sense as 4 prosecutor OF the
railroads. II viii be represented at the
hearing by one OF It's examiners, Frank
Lyon, who VIII endeayor to develop any
testimony that may tend to throw light on
disputed points. The great shipping or
CARNATIONS viii be represented by J. n.
Atwood, Of Kansas City. and Francis 3.
James, Of Cincinnati. The railroads Will
be represented by their general counsel,
the big systems, like the Pennsylvania, the
New York Central, the Erie and the Bal
tinore & Ohio, taking the burden of the
work.
The testimony will be heard by Judge G.
n Brown, chief examiner for the commits
sion.