New-York tribune., 1910-06-08
EASTERN ROADS
ADOPT TAFT'STERNS
No Rate Increases Until Conn.,
meFce Commission Passes
on ReaSonabieneSS.
RATE BILL IN CONFERENCE
House and Senate Act on Presi-
dents Request to Make
Measure Immediately
Effective.
fFrom The Tribune Bureau

1LCCSS UA Z AA-AAAACNtA~b~1J
Effective.
fFron The Tribune BureauI
Washington. June T.-President Taft
rounded out his victory Of yesterday by
obtaining a similar concession to-day
from the managers Of the Eastern rail-
roads, as a result of which no rates in
the entire section Of the Atlantic sea-
board 70 Chicago and north of the Ohio
River viii be increased until the Inter
state Commerce Commission has had an
opportunity to investigate in advance the
reasona bIeness of any proposed advance.
Moreover, President Finley of the South
ern Railway assured the President that
his road will make no increases ex-
cept under the provisions Of the new
law and expressed the belief that all
other reads in the Southern territory
will be guided by the decision Of the
Southern
This means that as a result Of the per-
sonaI negotiations of the President the
shippers throughout the entire country
are protected from immediate advances
in rates and from all advances until the
determined by the Interstate Commerce
Commission The saving to the ship
pers of the country is incalCuIable. While
the railroads also benefit in that they
are saved from the great expense Of ex-
tenstive litigation and the uncertainty
which would have attended the value OF
their securities had they entered into a
judicial conflict with the government.
Congratulations poured into the White
House all day on yesterdays victory.
and when the details of to-dav's confer
ence became known the enthusiasm Of
the shippers in every section knew no
bounds.
Mr.. Taft's Diplomacy Wins.
The President made it clear to-day
that the administration had in mind no
prosecution Of the Eastern railroads un-
der the Sherman law. but by diplomacy
he brought the executives of the rail-
roads TO see the wisdom Of the course
he advocated. The heads Of the rail-
roads do not believe it will take the In
terstate Commerce Commission anything
like the eleven months provided in the
pending railroad bill to determine the
reasona bIeness or the reverse Of pro-
posed increases in rates. They assume
that the commission will approve or dis
approve in principle great numbers of
rates en- bloc or. in other words that II
will determine the equity of certain key
rates. to which all other changes will be
made to conform.
Those present at to-day's conference
were President McCrea. Of the Pennsyl-
vania Company with Judge Massey.
general counsel. President Brown. of the
New York central. and President Fin
ley. Of the Southern Railway. The gov
ernment was represented by the Presi-
dent and the Attorney General The
conference was entirely friendly. and
lasted only an hour and a half. the rail-
road men having come with pretty
clear understanding of what was expect
ed of them from yesterdays agreement.
When the conference ended the follow
irg statement was given out at the
White House:
At the invitation Of the President
James McCrea. president of the Penn
.ylvania companies. with Judge Massey
general counsel. w G. Brown, preSl-
dent of the New York Central lines. and
w w Finley. of. the Southern Rail
vav, met the President at his office for
a conference with respect to the pro-
posed advance of rates, which mad
already been filed by the trunk hnes anu anu
central freight lines with the Interstate
Commerce Commission, TO be e1ectlVe
July l ard thereafter.
At the conference it was agreed that
if the amendment recommended in the
,,essa ge of the President this morning to
rail h 96ODre0.
and if the bill became law on or before
IuIv / no agreement was necessary TO
bring the rates in question before the
Interstate Commerce Commission for IN
vestigatiOn and decision oeIore lhey pc
came effective But 1T was 1urther
agreed that if the enactment OF the rail-
road Law was deferred, OF 1t should
otherwise become necessary, the rail-
road companies would submit the pro-
posed advance in rates TO the InterStat9
Commerce Commission in acCordanc9
with the provisions of the new law
MIR. Finley the president of the south
ern Railway. stated that as to southern
territory hiS.cOmpany. while recognizing
the necessity for some increase IN sons
of the rates. had taken no action as yets
So that there was no need of any stlpu-
lation by his company
It appears that the first suggestion OF
a conference between the President and
the railroad executives came from Presi-
dent Gutter of the Pere Marquette Rail-
vav who saw Mr. Taft on his recent
Western trip. Mr. Taft indicated his en-
tire Willingness 10 confer with the rail-
road presidents. and President W. c.
Brown then wrote him asking II such a
conference would be agreeable. the Pres
ident replying in the affirmative.
No Promise of Immunity.
In neither to-day's nor yesterdays
conference did the President make any
rrornise of immunity from prosecution
under the sherman law other than the
promise that proceedings pursuant TO the
Injunction against the Western Traffic
Association would not be pressed.
There is obvious relief among the rail-
road men over the settlement OF what
M one time threatened To be a serious
conflict between the governmeI> a1d
their roads. They feel that grave
crisis has been passed. and while they
declare that the shippers have obtained
the best of the bargain they are loud IN
their praises of the diplomacy of Presi-
dent Taft. The situation vas one where
false step or a lack OF tact and judg-
uent might have worked incalculabls
,,,, md now all dangers have been