The Detroit times., 1910-10-18
new LAW AFFECTS
MILLION RATES
Interstate Commerce Commission
Puts Stop To Use Of Taplines
For Evading Statute.

WASHINGTON, Oct 1S.--It Is esti-
mated that since Aug. 1S, the day the
amended rate law went into effect, the
Interstate Commerce commission has
suspended half a million rates and
suspended the cancellation of about as
many more. Perhaps IL Is too dignified
to say that the million Is an estimate.
All the railroads in all parts of the
country except the southeastern Sec
tion gave notice during the last three
months Of q desire to increase their
thrpme.
m theory the commission is going
to examine this half million of rates
and determine, with regard to each,
,whetha1 the rate u is. to displace was
TOO I0v Or just right. Asa matter Of
fact the procedure will be to take
sample rates from large number OF
tariffs and apply to them tests the
commissioners have made for them
selves. 1t is expected that the COM
missioners will assume, for their own
guidance. that the existing rates,
which the railroads desire to dis
place, are just and reasonable. That
affords fair base line. At least that
Is the view minor officials of the COM
mission are inclined to take.
The new law specifically places the
burden of proving that new and high
er rates are needed upon the rail-
roads. Therefore. IL the commission
ers assume that the existing rates are
just and reasonable, they will require
the railroads to show In what amount
their permanent ordinary expenses
have been increased by the high cost
Of living.
Case Of the Pennsylvania.
A few railroads, notably the Penn
sylvania, will be able to show that
their fixed charges have been in
creased by the construction Of new
terminals. Nearly all will be able TO
show that wages have been increased.
1t Is doubtful, however, whether the
Pennsylvania will be able to show
that there will be no compensating in
crease in earnings because Of the con-
struction of the terminals. AS to the
Increase Of wages. 1t Is generally be-
lieved among those who have thought
on the subject, that the increased dis
bursements on that account will not
convince the commission that In
creases as large as those proposed,
will be justifiable.
There is a suspicion that the rate
tariff-makers, confronted with an in
crease In the wages account OF say,
81, 900, 900, have proposed increases,
which, IL granted will enable the rail-
roads to increase the income on ac-
count of that increase in wages to
three or four times the amount of the
extra disbursement for higher wages.
The half million of suspensions of
rates proposed to be cancelled make
up what are known as the tap-line
cases. The railroads that are admit
ted to be interstate commerce car.
riers, selling upon a definition OF
tap-line, given by the commission,
have undertaken to cancel all the
Joint and through rates made by them
In connection with short railroads
that, primarily, were built to bring
out logs and lumber from country
that Is now developing. The carriers
contend that the definition is so broad
as TO include practically every one of
the 1900 or 1900 tap-lines and indus
trial railroads, some of which perform
the functions Of common carriers for
sparsely settled districts, but their
chief business Is hauling commodities
for the interests that built them.
Commission Saw Through II.
The commission, when II made the
definition Of tap-line. saw chiefly the
almost unlimited opportunities AFFORD
ed by the possession of such tap
line or industrial railroad for evaeing
the anti-rebate section OF the NV. The
fact is 1t had In mind the fAct that
the International Harvester Co., the
Union stockyards and many other
companies. under pretense of making
joint through rates with the railroads
that are admittedly common carriers
and nothing else, could and did de-
mand rates that amounted to prefer.
entail treatment for themselves and
the industries for the accommodation
OF which their short railroads were
built. Then again, II saw that the
big lumber companies. the chief units
IN the lumber combination. could use