New-York tribune., 1911-02-24
STOCKS AWAITED RULING.
Wall Street Had Rumor Early,
but Expected Rate Victory.
B. & 0. PRESIDENT TALKS
Willard Sure Decision Means
Curtailment of improvements
History of Case.

| well defined rumor gained CURRENCY
| Yesterday that the Interstate colnmere,
Commission would hand down its decision
in the freight rate matter late in the after
noon. az or 4:3o o'clock, and as o resuli
( the stock market was dull and featurelesi
during the session, waiting market.
! the volume Of transactions being small and
the net price changes unimpertant
| Few of the railway heads are at present
| in New York. William VI. Truesdsle, pres
ident Of the Lackawanna was among thos,
who had nothing 10 say. and Walker u
! Hines, chairman OF the executive commit
| tee OF the Atchison. Topeka & Santa Fe
also declined TO make any comment, al
! though adding that he might make state
ment to-day. Presidents Lovett Of the
/ Union Pacific and southern Pacific; Brown
/ Of the New York Central; Finley, Of the
1 Southern Railway, and Underwood, of the
( Erie were out OF the city as was slse Ed
win Hawley, who is In Florida
II hope IL will develop that we were all
wrong and that the Interstate Commerce
Commission is right" declared President
Daniel Willard, of the Baltimore & Ohio
Railroad
WIZ NSNc tut EtOeHtcSs
LAS ] see it there Is only one thing for
us to do. and that is to put into practice
the Brapdeis greater efficiency system.
You know Mr. Brsndeis WAS the apostle
of the system OF getting greater efficiency
for the same money or less. There are
only two ways that we can reduce ex-
penses-and we will have to reduce ex-
penses-and they are to buy less material
and pay less for what we get'
will that decision effect q curtailment
in your plans for improvements
Yes, ! should say II will. We can't ex-
pect so large a revenue with which 10 go
ahead. OF course, we may have been
wrong. and the commission right. I hope
we were, don't you?'
The decision announced Yesterday has
been under consideration by the Interstate
Commerce Commission for several months
following a series of hearings at which
many railway presidents testified TO the
need of higher freight rates, and shippers
were heard in opposition The first con-
certed effort Of the railways 20 raise their
rates was made In 1905, but nothing came
Of IT, since il failed 10 secure the support
Of certain important roads, while shippers
vigorously opposed It.
In the latter part Of 1909 the employees
OF railways all over the country began to
agitate the subject of increased wages,
baSng their position upon the high cost
of living. and the railways once more took
up the plan Of general advance in freight
rates. Many Of the roads granted wage
increases averaging about per cent, on
April ]. 1910: and to meet this added eX-
pense and the higher cost OF materials
they arranged new rate schedules.
Roads File New Tariffs.
Twenty-four roads operating in the Mid
die West filed through the Western Trunk
Line Committee on April 26 and q new
tariffs. increasing rates on about 100 com
modities. effective on June !, the law re-
curing thirty days notice to The Inter-
state Commerce Commission before pro-
posed tariff changes shall go into effect.
Most Of the Eastern roads also filed with
the commission notices of increases IN
tileiF tariffs to take effect from July 20 .;
ard the twenty-five roads composing the
Central Freight Association filed new
tariffs 10 go into effect on July I.
On May 81, 1910, Attorney General Wick
ersham secured IN the United States Court
in St. Louis a temporary injunction pre-
venting the enforcement of the tariff in
creases of the roads OF the Western Trunk
Line Committee, alleging that the joint
action of these railways was in yiolati
Of the sherman antitrust law and also
that the proposed rates were unreasonable.
a few DAYS later Z. p. Ripley, president
Of the Atchison; I. \. Delano. president
OF the Wabash, and other railway eXecu-
ttves held conference with President
Taft. rs result OF which the twenty-fcur
roads of the Western Trunk Line Commit
tee agreed 10 hold their proposed rate in
creases in abeyance until the passage OF
the railroad bill, permitting the Interstate
Commerce Commission 10 investigate the
reasonableness of rates before the rates
should become operative. The rates were
refled a. operative on August !, subject
10 further postponement, and discontinu-
snee of the injunction proceedings was
promised. The Eastern and Central freight
roads later followed the action of the
Western Trunk Line Committee roads
HEARINGS Here and in Chicago.
Following the turning over Of the ques-
1 tion 10 the Interstate Commerce Commis-
| sion. both the railways and the shippers
organizations began active preparations
/ for the hearings. which were started on
| August Ia and were held here and in Chi
csgo. Exhaustive figures were presented
! bv the attorneys for the roads TO show the
necessity for increased revenue through
higher freight charges, in view Of the
| added expense Of wage increases and high
! cost of materials, and the presidents of
| mary large roads testified that rates mUsi
he raised # theiI companies We're 10 be
able 10 finance the improvements necss-
| ssr, 10 enable them to meet adequately
the requirements of traffic
The shippers and their attorneys stoutly
! contested thu contentious Of the railway
! representatives, and Louis j. Bran6eis.
counsel Ter the traffic committee of COM
r1ercial organizations of the Atlantic sea
beard. dweIt upon the sdvisabiity Of the
! roads adopting scientific MANAGEMENT,
through which ne estimated a saving ~
/ 81 .0ro dsy would Ice effected. adding:
III their credit is impaired, the proper
remedy IS not 10 apply the deiusiye stimu-
liant Of higher rates. but to strengthen their
organizations ny introducing advanced
methods and clmina;ins questionable prac-
| tices."
| What effect the decision viii have IN
| postponing further the prosecution Of inn
| provement and betterment and extension
work by the railways remains 10 be seen.
| one great railway system. the Union Pa
| cinc. a few weeks ago decided to 20 ahead
with extensive plans involving the expen-
diture Of T5ODo,0oo within the coming five
wears for double-tra cking and Of a further
great sum FOR extensions and new lines.
! although the management fully recognized