Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1911-02-24
EXISTING TARIFFS UPHELD
COMMERCE COMMISSION RULES
THAT THEY MUST STAND FOR
NEXT TWO YEARS
POWERFUL PLEAS IN VAIN
COULDN'T CONVINCE GOVERN
MENT MORE REVENUE WAS
NEEDED FOR IMPROVEMENTS

Washington, Feb. 24.-Today the
railroads of the country, that is theil
presidents and boards of directors, are
slowly recovering from the shock oil
yesterday, caused by the announce.
ment by the Interstate Commerce
Commission that it had decided
against the railroads, in both the
eastern and the western" rate cases.
Proposed advances in class freight
rates in official classification territory
aggregating among all the railways in
the territory approximately S27,OOO,-
900 year were disapproved by the
commission.
In the case involving the increases
by the railroads in western trunk line
territory the commission also decid-
ed to disapprove the proposed advance
in commodity rates.
The carriers in both cases are re-
quired to cancel on or before March |
10, their advanced tariffs and restore
their former rates, which are the rates
now in effect. If this requirement be
not complied with, the commission
will issue formal order suspending
the proposed advances and putting in
to effect the existing rates for at least
two years.
In the case of the railroad commits.
sion of Texas against the Atchison,
Topeka & Santa Fe railway and other
carriers, known popularity as the
southwestern rate case, the commits
sion declined to disturb the commod-
ity rates or the frst-class rates COM
planned of. The defendants are Or
dered, however, to reduce the second
class rates which were increased from
$1.21 to $1.29, to $1.25. On the re-
naming classes the defendants are
required to restore the rates in effect
before the increased rates were pub
lished.
The decision surprised railroad Of
ficials, the majority of whom believed
the commission would grant some in
crease to the western lines, if not to
the eastern.
The commission comedies that in
the case of some of the roads an in
creased revenue is needed. In what
is known as the eastern case, the COM
mission was embarrassed by the ad-
mitted fact that several of the lines
in the territory were paying good
dividends upon existing rates, while
other carriers in the same territory
were barely able to make both ends
meet-a few of them scarcely that.
In the western case, the carriers
entered a powerful plea for increased
revenue in order that they might have
additional money to make improve
ments which would enable them bet
ter to handle the constantly increasing
traffic.
The same argument was advanced
in support of the proposed advances
in official classification territory
but Commissioner Prouty, who wrote
the opinion in the eastern case, says:
This argument does not appeal to
us. We doubt the practical difficulty
suggested (that of obtaining by loan
sufficient money to finance the roads,
and were it true. it is not apparent
that the general public would stand
responsible for the mistakes which
have been made in financing these
railroad systems.
Both the eastern and western cases
were brought to public attention IN
the spring of 1910. Just prior to tht
enactment of the existing interstate
commerce law, which, in part became
effective on June IS, 1910, the rail
ways of official classification terri
tory-41 in all-and those of western
trunk line association territory, filet
with the Interstate commerce com