The Birmingham age-herald., 1911-02-24
PROPOSED ADVANCE IN CLASS FREIGHT
 RATES IS DENIED
Interstate Commerce Com mission Kills Raise of
 $27,O00,00O
AMERICAN RAILROADS
 VERY PROSPEROUS
Commission Rules That the Evidence Presented By Railroads Does Not Prove Necessity of Advance
 in Freight Rates

Washington. February 23.-The inter- state commerce commission has decided against the railroads in the "Eastten and Western" cases. The decision eagerly awaited by roads and shippers alike, was handed down late this after noon.
 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 com mission.
 In the case involving the increases by the railroads in western trunk line territory the committee also declined to approve the proposed advances in com modity rates. The carriers in both cases are required to cancel on or before March 10 their advanced tariffs and re- store their former rates. which are the rates now in effect. If this require ment be not complied with, the com mission will issue formal order suspending the proposed advances and putting into effect the exis:r~~ rates for at least two years.
 In the case of the railroad commits sion of Texas against the Atchison, Topeka and Santa Fe railway and other carriers, known popularly as the south western rate case. the commission de- clined to disturb the commodity rates or the first class rates complained of The defendants are ordered, however to reduce the second class rates, which were increased from S1.21 to SIPS, to s125 On the remaining classes the de- fendants are required to extend the rates in effect before the increased rates were published
 Railroad Officials Surprised
 In brief this is the disposition made by the interstate commerce commission of the most important cases ever brought to It's attention. In sense, the decisions were in the nature of surprise to railroad ofl icials and other experts who had followed closely the proceedings, a majority of whom be- lieved the commission would grant some increase to the western lines II not to the eastern.
 In considering exhaustively the sup- feet. however, the commission could not see It's way clear to grant any increase in rates although 1t conceded that Tn the case or Sonie ioduS' cur S revenue is needed.
 Tn what Is known as the western case the commission was embarrassed by the admitted fact that several or the lines in the territory were pSyins good dividends on existing rates, while other carriers in the same territory were barely able to make poth eros meet few of them scarcely that.
 In the western case the carriers entered
 P,J y,la for increased revenue in order that they might have additional money to put into improvements ana pet terments which would enable them 10 handle with the greater facilities the con stantly increasing traffic of the coun- try.
 Argument Did Not Appeal
 The same argument was advanced Tn support of the proposed advances In ol- flclal classification territory, but com missioner Prouty, who wrote the opihloh in the eastern case, says:
 ..This argument does not appeal 10 us wo doubt the practical difficulty suggest ed (that of obtaining by loan sufficient money to finance the roads). and, were IL true. 1t is not apparent that the general public should stand responsible for the mistakes which have been made in nnanc- ing these railroad systems.
 Both the eastern and western cases were brought to public attention Tn the spring of 1910. Just prior to the enact ment of the existing interstate commerce law. which In part became effective on .June 1S 1910 the railways In official clas- siflcation territory, Al in all, and those of western trunk line association territory, filed with the interstate commerce com mission tariffs making general increase in their freight rates.
 The tariffs filed by the eastern lines ih- creased the frst-class rate between New York and Chicago points 15 cents hum ,dred pounds, from 70 cents to 90 cents; and made proportional advances on the other five classes. Some advances also were made on commodity rates, but the great bulk of the commodity tonnage of freight was not disturbed. The proposed advances affected approximately b per cent of the total freight tonnage.
 Approximately the same amount of ton mage was affected by the increases pro posed by the western lines, but the class rates were not affected in any way.
 Commodities alone were increased, the average advance on about 1S0 different articles being substantially 16 per cent, the increase varying from about per cent in some cases to 50 per cent in others. sf
 At the time the tariffs were filed the commission had no authority to suspend
 
 ton of their rcasonableness, but after conferences with the commission and with President Taft the railway officials agreed voluntarily to suspend the rates until August l. Meantime, on June IS, the present law was passed giving the commission power to suspend rates. Sub scquently the proposed tariffs again were suspended voluntarily, first, until Novem- her and later until February 1, 1911 The commission found itself unable to physic- ally conclude it's consideration of the cases by February 1, and again the rates were suspended until March 15.
 Did Not Prove Necessity
 Tn withholding finally its approval of the proposed increase, the commission holds-and its decision in both the east ern and western cases were unanimous that the carriers did not in the proceed ings sustain what the law imposes upon them. |. e., the burden of proof that absolute necessity existed for the ad- vances proposed.
 Tn his elaborate discussion of the east ern case Commissioner Prouty says:
 '.The railroad rates of this country have not been constructed as rule upon any scientific basis, and this Is especially true of the interstates rates" He points out that rates have been put into effect without special inquiry as to the amount of revenue they might produce or as to the burden the particular commodity af- fected by the rate ought to bear.
 Tt might not follow the opinion says, "even though we were of the opinion >~-->~-
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