The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-07-03
RAILROADS. WIN,
. BACKS down.
New Law Will Be En-
forced Very Spar
ingly.
SHIPPERS LEFT
OUT IN THE COLD
Conditions Throughout Country
Related to President, and Result
Will Be Practically Un-
restrained Increase in
Rates-Means Big Stir
Among Insurgents.
Especial to The Times-Dispatoh. ]

Especial to The Tilnes-Dispatoh.1
Washington. d. c.. July 2.-Presi-
dent Tafts declaration at Beverly yes
terday that the new railroad law would
not be enforced against the railroads
Is taken by Democrats here to indicate
a backdown by the administration Of
its announced purpose to restrain and
prevent advances inafreight rates COM
planned of by the shippers. 1t is as
sumed to mean that the railroads are
to be permitted to put In effect many
Of the advances recently held up by
the President under agreement with
the railroad magnates.
There was rejoicing at headquarters
of the Democratic Congressional Cam
paign Commission over the Beverly
pronouncement. after the interview had
with the President By Chairman Martin
A. Knapp, of the Interstate Commerce
Commission. Chairman Lloyd and
Vice Chairman Dixon, of the Demo-
cratic committee, hold that any refusal
by the Interstate Commerce Commits
sion to permit advances in rates or TO
require reductions would be an injury
to the railroads, or would be claimed
by them to be an injury, while such
reductions or prevented advances would
be to the benefit of the shippers
The greatest pressure of the new
railroad law came from the Insurgent
Republican Middle West The sharpest
protests against recent threatened ad-
Vances in freight rates were from the
Middle West shippers. and the advanced
rates enjoined by Attorney General
Wickersham were filed by Middle West
railroads,
His Proudcst Bonst.
IL was President Taft's proudest
boast when he got the railroad Bill
through that 1t enabled the admins
lration to protect the shippers against
rate advances by the railroads with
the passage Of the bill there vas a
break in railroad stock values. The
commission followed up the blow with
retusal to permit existing rates in
the territory west Of the Mississippi.
ana a general cut was ordered Then
the stock market went to pieces. on
the heels of this trouble there are
threatened strikes by conductors and
trainmen on all Southern roads ex-
ceptlng the Louisville and Nashville.
anu anu on the southwestern roads rum
ming out of st. Louis, for increased
wages. These employees demand a
scale similar to that of the North and
West All the railroads South. North
ana West are united in the declaration
that they cannot pay the increased
wages unless they are permitted to
raise rates.
Chairman Knapp carried the report
Oh conditions to President Taft. The
statement issued from Beverly indi-
Gates that the Interstate Commerce
commission VIII suspend proposed in
creases IN rates only in exceptional
instances. In most cases. il is ex-
pected. the railroads will be allowed
70 increase freight rates without him
drance. and only in few cases will
rates De suspended for any length of
time or any inquiry made into their
Justlncatlon or reasonableness. Cases
that on their faces are fragrant the
commission will examine 1ninutely.
shippers generally have had the
understanding that all the blanket in
oreases s OF rates proposed by the rail-
ROADS In recent weeks would he sus-
pended pending examination. and that
| the commission would not allow the
increases to take effect unless the
ROADS could show that they were ms
titled. 'ua
It is known in Washington that
Shippers in a great many cases ar.
proceeding on the theory that the shin.
Ing interests and the public need do
nothing at this juncture toward nro-
testing against increases believing
'that 1ater on. after the increases have
been suspended. they will have chance
for nearing. They are not putting in
complaints for this reason.
Will Get No Chance.
But If the commission follows the
course outlined in dispatches from
Beverly. the shippers Will never get
chance to be heard regarding many
increases.
Already, the commission has allowed
some increases to go into effect In Of
fetal classification territory on auto
mobiles and vehicles generally, as we'll
as some other articles. This was done
on the plea that the commission was
not prepared to say the increases were
not justified.
But the new law puts the burden
of proof on the railroads to show that
increases are justified. This part OF
the law, as viewed by many, will not
be carried into effect If rate Increases
are not,suspended and the roads made
to show they are justified.
1t is expected that a big stir will
be caused among shippers and among
the Insurgents in Congress.