New-York tribune., 1910-07-14
COMPUTATION RATES
NOT TO Be SUSPENDED
Commerce Commission Will In
quire Into ReasonabIeneSS of
Proposed Advances.
FREIGHT INCREASES HELD UP
Three Decisions Reached Under
New Railroad LaW-Hear-
ings To Be Held Here
and in Other Cities.
IFrom The Tribune Bureau.


Washington, July 13.-Three decisions
Of great interest to the railroads and to
the public have been reached by the
Interstate Commerce Commission and
/ the formal orders will be made in the
rear future In two instances the COM
mission will exercise the power granted
it by the new railroad law by enjoining
the increase in freight rates filed by
Eastern and Western railroads pending
an investigation of the reasonableness of
| the new tariffs. It is understood that
the commission voted unanimously to
exercise this power granted it by Sec
ton 10 Of the new law
In a third case. that of the New Jer-
sey commuters, no order will be made
restraining the new rates from going into
effect on July 90 In the near future, on
its own motion and without awaiting
complaint, the commission will make a
comprehensive inquiry into the reason
ableness Of the new communication rates
which are to be charged, beginning next
week. by the seven great railroads which
daily carry tens Of thousands of pas
sengers from New Jersey points to New
York.
The decision of the commission TO Sus-
pend the general advances in freight
rates filed by the Eastern and Western
carriers was not a complete surprise.
These tariffs were to become effective
on August ]. 1t will be remembered
that the Western Traffic Association, on
behalf of the twenty-five railroads in
that association, filed general increases
in rates in the territory west Of the Mis-
sissippi River. to become effective on
June i. At the instance of the Presi-
dent and in response to q general COM
plant from Western shippers Attorney
General Wickersham intervened, and on
May 81 Judge David P. Dyer granted an
! injunction at Hannibal. No. restraining
the railroads from putting the new rates
into effect.
Undaunted by the governments pro-
ceeding at Hannibal, railroads in the
East and Middle West filed tariffs en-
bodying increases in commodity rates
ranging from to 81 per cent. It took
the railroad officials only few days,
however, to realize that the Hannibal
proceeding had teeth in It, and on June
the President won decisive victory.
On that day the members of the execu
tive committee of the Western Traffic
Association came TO Washington and
saw Mr Taft. 1t was agreed that the
suit should not he pressed and that the
railroads should suspend all the pro-
posed increases in rates until after the
new railroad bill became law. On the
following day the President rounded out
his victory by obtaining a similar con-
cession from the managers of the East
ern railroads.
Suspension of Freight increases.
The new law gives the commission
power TO inquire into the reasonableness
of proposed increases before they go into
effect. In few days both the Eastern
and Western carriers will be formally
advised of the order of suspension and
steps will then be taken for holding
hearings in New York. Chicago and other
cities The law authorizes suspension
of the new rates for not exceeding 120
DAYS If the hearings are not finished
within this period the commission is au-
thorized to extend the time of suspen-
sion for further period not exceeding
six months. The law provides that the
burden of proof TO show that the pro-
posed rate increases are just and rea-
sonable shall be upon the carriers. It
also provides that the commission shall
give to the hearing and decision of such
questions preference over all other ques
tions pending before it and decide the
same as speedily as possible.
IT may be several days before an Off
cial announcement is made that the
commission will not enjoin the new
rates which are to be charged on and
after July 90 to residents of New Jer-
sey who travel daily to New York City.
The new rates provide an average in
crease of about IS per cent over exist
ing passenger communication rates.
The commuters who appeared in force
yesterday TO protest against the ad-
vances asked the commission to invoke
the new power granted it by the recent
interstate commerce act and enjoin the
increases for 100 days. The railroads
protested against such injunction. They
denied the jurisdiction Of the commits
sion to restrain the rates on the ground
that they were filed before the new law
took effect. They insisted also that the
proposed increases were just and rea-
sonable. and said the present rates were
not remunerative. II is understood that.
without passing on the question of jurs-
diction. the commission took the posi-
ton that the commuters failed to make
out a prima facie case in support of
their contention that the increased rates
are unreasonable.
Invoke New Law for Commuters.
Under the old interstate commerce act