Omaha daily bee., 1911-02-24
INCLUDES WESTERN COMMODITIES
Tariffs Of Southwestern Roads Are
Reduced on Lower Glasses.
MUST BE CANCELLED MARCH 10
Will Suspend Raises by Formal Order
if Companies DisObey.
MCREAsED REvENUEs NEEDED
CommisaiOn Comedies some Railroads
Need Larger IncOme - Carriers
Make PovverfuI plea in west
70 No Avail.

WARRINGTON, Feb. 3.--The Interstate
Commerce commission has decided against
the railroads in both the eastern and
the western cases. The decision was
handed down late this afternoon.
Proposed advances IN class freight rates
In official classification territory, aggre-
eating among ali the railways in the terri
tory approximately S27.OOOO0O a year, we're
disapprovcd by the commission.
In the case involving the increases by
the railroads IN western trunk line terri
tory the commission also declined 20 ap-
prove the proposed advances In commodity
rates.
The carriers in both cases are required
to cancel on or before March 10 their ad-
vanced tariffs and restore their former
rates. which are the rates now in effect.
II this requirement be not complied with
the commission will Issue formal order
suspendlng the proposed advances and put
ting into effect the existing rates for at
least two years.
southwestern Rates Changed.
In the case OF the railroad commission
OF Texas against the Atchison. Topeka 4
Santa re railway and other carriers known
popularity as the southwestern rate case.
the commission declined to disturb the
commodity rates or the first-elass rates
complained OF. The defendants are ordered
to reduce the second class rates, which
were Increased from s1.21 10 N.2s to 81 rs.
In the remaining classes the defendants
are required to restore the rates in effect
before the increased rates were published
This ls the disposition made by the Inter-
state Commerce. commission OF the most
important cases ever brought to its atten-
ton In a sense the decisions were in the
nature of a surprise to railroad officials
and other experts who had followed closely
tho proceedings. a majority Of whom be-
licved the commission would grant some
increases TO the western lines, Il not TO the
eastern.
More Revenue Needed.
The commission comedies that IN the
case OF some Of the roads increased revenue
Is needed In the eastern case. the COM
mission was embarrassed by the admitted
fact that several Of the lines IN the terri-
tory we're paying good, dividends upon ex-
listing rates, while other carriers in the
same territory were barely able TO make
both ends meet-a few OF them scarcely
more
In the western case the carriers entered
q powerful plea for increased revenue In
order that they might have additional
money to put into Improvements and bet
terments. which would enable them to
handle with greater facility the constantly
Increasing traffic Of the country.
the same argument was advanced in
support OF the proposed advances IN Of
ficiai classification territory but Commits
sioner Prouty, who wrote the opinion in
the eastern case. says;
This argument does not appeal to us
We doubt the practical difficulty sug-
- .a.a
money TO finance the roads, and were Il
true. that II is not apparent that the gem
eral public should stand responsible for
the mistakes which have been made in
financing these railroad systems"
History of Cases.
Both the eastern and western cases were
brought to public attention in the spring
OF 1910 Just prior TO the enactment OF
the existing interstate commerce law,
which, IN part, became effective on June
Is, 1910 the railways OF official classified
tion territory-forty-on in all--and those
OF Western Trfnk Line association terri
tory filed with the commission tariffs
making increases IN their freight rates.
The tariffs filed by the eastern lines IN.
creased the first class rate between New
York and Chicago points IS cents a hun
dred pounds, from 70 cents to 30 cents:
ana 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 approx.
mately Is per cent OF the total freight ton
mage Approximately the same amount OF
tonnage was affected BY the increases
proposed by the western lines. but the
class rates were not affected In anv way.
Commodities alone were Increased. the
average advance on about $50 different
srticlea being substantially l6 per cent this
Increase varying from about per cent
m some cases to 50 per cent in others.