The Washington herald., 1910-05-11
RAIL WAR AVERTED
Understanding Is ReachedOn
Freight Rates in East.
COMMISSION QUELLS TROUBLE
All Parties Concerned In COntro-
versy StipuInte They VIE Abide
by Decision Pending DeterminH-
tiOn of Cutting of Chnrges-Neyy
York Only City Involved.

IhrOugh the friendly efforts Of the In
terstate Commerce Commission a rail-
road war over import freight rates. which
threatened to involve the entire Atlantic
Seaboard. has been averted.
The dinerentals in import freight rates
from Boston. Philadelphia. and Bald-
more to Western and intermediate points
have been the source Of serious trouble
among competing lines for more than
year and further cuts. which would have
precipitated a violent rate war. were
filed with the Interstate Commerce Com
mission.
The Interstate Commerce Commission
entered the situation at the request OF
representatives of the Eastern trunk lines
and Of trade bodies in Boston. Philadel-
phia, and Baltimore. who admitted that
they had been unable TO reach any agree
ment among themselves.
They asked the commission 70 hear the
facts and then 70 establish informally the
status quo which shall exist until full
hearing and an investigation can he made
by the commission.
All Parties Agree.
The commission held thi. hearing yes
terday and handed down its decision. by
which the warning parties have agreed 10
abide until the questions at issue have
been formally disposed of as provided by
law
This temporary settlement is. Of course,
merely in the nature OF a gentleman's
agreement, and it IS particularly interest
ing in that II IS the first case Of the
kind that has been acted upon in this
informal way. The result Of the under
standing Will mean that the postpone
ment Of the threatened rate war. az least
until next fan, and probably for a year.
Under the decision reached by the
commission, Boston holds her own as re-
CARDS rates, Philadelphia gains an ad-
vantage while Baltimore apparently IS
left holding the bag"
The whole trouble over the question OF
import rates began in March 1879. when
the Boston and Main Railroad filed with
the Interstate Commerce Commission new
freight trafics, which made the import
freight rate from Boston to Chicago and
other Western points the same as from
Baltimore, and practically the same as
from Philadelphia TO Chicago and the
Middle West
Rc-estnbIIshcd Old Rates.
The hauls from Philadelphia and from
Baltimore 10 these Western points were
shorter. Other trunk lines met the Bos-
ton and Names cut. and that road came
back with another reduction. The trunk
lines met this second cut. but after sew
eral months trial found they were doing
a losing business, and on January / they
re-established their old rates.
The Boston and Maine, however, stuck
20 its original cut and the shippers OF
Baltimore and Philadelphia have been
Raising the cry that a large quantity OF
their business has been diverted to Bos-
ton, while the carriers from PhiladcI-
phia and Baltimore have suffered a cor
responding loss.
New York City is only incidentally in.
volved in the situation.
The immediate situation which brought
about the appeal to the commission was
the intention Of the Pennsylvania, the
Baltimore and Ohio. and the Philadelphia
and Reading 10 place on file with the
Interstate Commerce Commission freight
tariffs that would show reductions from
Baltimore and Philadelphia lower than
those now prevailing from Boston.
This would have put it up to the Bos-
ton and Maine again to make cut.
The controversy all along has been over
the import rates, but IL was feared that
the disturbing Of the import differential
would result finally in a general rate war.
The good Offices OF the commission were
solicited because of its expert knowledge.
1t was not appealed 10 in its official
capacity. all parties to the controversy
stipulating that they would abide by the
decision pending a determination Of the
whole question.