New-York tribune., 1910-06-02
EASTERN ROADS ALSO
HIT BY RATE ORDER
Say Plans for Advances Are
Blocked by the Western
Injunction.
I'M DOUBT AS TO FUTURE
Officials Declare That Decreased
Shipments Are Likely to
Follow Federal
Suit.

FOLLOW Federal
Suit.
The plans Of the Eastern railroads and
trunk lines for an early increase OF freight
rates have been knocked into cooked hat
by the granting OF the injunction restrain
ing twenty-five Western roads from in
creasing their rates. The Eastern roads
have been holding conferences for some
time and have most OF their new schedules
ready. Further conferences had been ar
ranged for the near future. and the entire
new schedule was TO be ready for filing
with the Interstate Commerce Commission
in time for the new rates TO go into effect
in the early fall.
An official Of an Eastern road who has
been busy on the work OF preparing the
new schedules said yesterday that the con-
ferences Of the Eastern roads had been
called of. I'VE are all up in the air. he
said. we can't tell what 10 do until this
case has been settled Our rate plans have
81 gene 10 smash. II we can't get to-
gether ard talk over rates. I don't know
what We are going TO do. Il would be folly
for one road TO Try TO increase rates by
itself; that would be ruination TO its bust
ness: but the roads can't pay the present
wages and keep up the rate of dividends
unless the freight rates are increased.
1t should be taken into account that the
Increased cost of living has affected the
railroads as well as other lines Of business.
Supplies cost US more and we have TO pay
higher wages. We have Just come through
= session with our employees in which We
granted a general increase all along the
line Now. II looks as though We were 10
be told that we can't raise our freight rates
sr-,a
But wait untfI>the railroads begin 10 lay
Of men and countermand orders for new
equipment. and then the public will wake
up TO what this thing means The country
Is nightly dependent on the railroads for
its prosperity and il needs a good lesson
4 prorracted period Of business depression
viii teach the people 10 give the railroads
@ chance"
Opinion among railroad men had not had
tine TO Crystallize yesterday and few Of
them were ready TO talk for publication.
They wanted time 10 get the text Of the
court order and more time to study the
situation. But the general feeling was one
Of anger and antagonisIn.
View of J. 3. Kerr.
The general feeling was thus pretty we'll
expressed. John B. Kerr. vice-president
and general counsel of the New York, On
tario & Western. said:
There is no use speculatinE on business
or what VIII happen 70 railroads under
present conditions. The one sure thing is
that anything unsettling to the railroads
hurts business generally. A business man
must know his railroad rates. as well as
the price Of bar iron When the railroads
can't make a move without the government
going after them there can't he anything
stable about their affairs. and general bust
ness is going TO be correspondingly un-
stable.
The Eastern roads may be affected by
this action in the West. It IS likely 10
result in decreased shipments and a falling
of I'm the general business Of the Eastern
roads. There is no sign Of boom now.
and such action viii not help. Better times
may come in the fall after Congress has
adjourned and the people have had time 10
find out where they are
". H. Newman. former president Of the
New York Central sailed for Europe yes
terday on the Adriatic. Before sailing he
said Of the injunction against the Western
roads:
I believe the sentiment Of The country
i against the increase in rates. II may
possibly mean great injury 10 business.
Still. YOU cannot tell what will happen in
tie next forrv-eight hours. 20 not care 20
say much about it. I an not now an aC-
tive railroad man. YOU know. but still 1
take an active interest in what IS going
on Business conditions. as a rule, are
good. but this injunction may mean a con
sidera ble setback"
Newman Erb, chairman OF the executive
board OF the Ann Arbor Railroad. pointed
out that the railroads were directed by one
law 10 do a certain thing, while by another
thing.
The railroad companies do not wish 70
do anything unlawful he said, and are
themselves interested in knowing whether
their proceedings have been lawful TIE
interstate commerce act requires them 20
unite in establishing through rates and
3oint tariffs for interstate business, and i'm
poses severe penalties for violation of this
provision. The sherman law prohibits
rhem from uniting in agreements in re-
straint Of trade. Sc the railroads are be
tween two fires
The question OF whether the rates the
railroads now desire to establish are too
high or. rather unreasonable. IS not in
Volved in the present proceedings of the
government. The sole question is whether
the railroads have combined for the pur-
pose Of establishing rates I'm restraint Of
trade under the Sherman law. The Inter
state Commerce Commission is the sole
tribunal for the determination Of the rea-
soma bleness or unreasona ableness of rates.
An other advances made by the rail-
roads remain undisturbed. and railroads
are left 10 advance their rates independently
serious injury 10 the railroad interests
of the country is involved in the present
government proceedings. Il IS simply a
question Of obtaining decision which will
determine whether the railroad companies
can unite IN establishing joint tariffs under
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