The Washington times., 1911-02-25
BELIEVE RAILROADS
WILL NOT APPEAL
Further Contest in Rate De-
ciSiOn Not Look
ed For.
OFFICIALS CLAIM NO
BASIS FOR ACTION
Ruling of Commission Expected to
Be Far-Reaching in Its
Results.

J. is regarded as practically certain,
by interstate Commerce Commission Of
tucers that the railroads will accept
without appeal the decision that they
may not increase their rates under the
tariffs filed last summer and autumn.
One great system, the Pennsylvania,
notified the commission within a few
hours of the announcement of the de-
cison that II would acquiesce in the
ruling without further contest.
The commission expects that within
a few days this will be accepted as the
policy of the roads generally.
No Basis for Appeal
leading official of the commission
said:
There is nothing on which the roads
can base an appeal, and l have no idea
that the case will go to the Court of
Commerce. The law and the strict ad-
publications recently given by the Su-
preme Court, leave the roads nothing
on which to carry the matter up.
IF the commission had reduced any
rates, the situation would be different.
The roads might go to court on the
constitutional ground that their prop
erty was being taken without due pro-
cess. But no property is being taken.
No construction can be given to the de-
Cision, which Justities such conclusion.
The roads are not asked to give up a
penny Of their present earnings.
The present rates will not be per
1litted to be raised. That IS all. These
rates have been esta ablished by the raIl-
roads themselves In the past, when
they were perfectly free to name what
ever charges they saw fit.
Prospered Under Old Rates.
For years they operated and pros
pered under these rates. They could
have raised them, if they had needed
the money. They did not see fit TO do so
until the proposal was advanced in
Congress to pass law prohibiting them
in future from advancing rates without
consent of TIE commission.
In the effort to make one general
increase before that measure should be-
come law, the railroads filed new tariffs
showing advances, and the Govern
ment enjoined the advances till the new
law had passed, giving the commission
the authority which it has now eXer-
Cised. We feel that the showing is com
plete, and that the decisions of Commits
sioners Prouty and Lane cover the en-
tire ground. There is no justification
for the roads pressing the case farther,
and they will not do it
Effects Will Be Far-Reaching.
The effects of the decisions are ex-
pected to be so far-reaching that they
will not be fully realized for a long
time. The whole attitude of Govern
menI and roads is now reversed.
Instead of the roads making their
rates, they have a system of rates-the
existing Ones-prescribed for them, and
may increase these only on order of the
commission.
On the other hand. the commission
may, on complaint and investigation, or
on ITS own motion is deemed necessary,
reduce rates at its will-Of course,
within the constitutional restrictions
nf m nj will
be on the weaker roads. One official
Eaid:
The Lackawanna shed golden tears
over its compassionate willingness to
have its own dividends showed up to 60
per cent. If rates need be so high, in
order that the Erie might earn per
cent. 1t was a beautiful spectacle
that of the strong roads, East and West
being willing to raise their own rates
in order that the weaker roads, by ad-
Nancing their own at the same time,
might live.
FavorS a Reasonable Rate.
But the commission has not taken
this view. 1t has decided in favor of
a reasonable rate, and left the roads to
shift for themselves. Much stress was
laid on the case of the Chicago, Great
Western, a weak road, whose traffic
is small. If it got rates enough to make
Il profitable. its competitors would en-
JOY immense increases in their revenues,
which they do not need and are not
entitled to.
THE outcome in such cases will in
evitably be the dismemberment of such
a road as the Great Western and the
distribution of its lines among the
powerful competing systems as they can
best use the various divisions: or else
the complete control of the Great West
ern by some big system to which it
can be useful That is inevitable, and
1t is what ought to happen. in the public
interest. The weak roads cannot be
maintained as Independents without Civ
ing the strong roads excessive earnings
which the public would have to pay"