The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1911-02-25
Commission RULES
AGAINST RAILWAYS

DOtn the eastern and the western cases.
The decision was handed down late
Thursday afternoon.
Proposed advances in class freight
rates in official classification territory,
aggregating among all the railways in
the territory approximately $27 7,000,-
600 year, were disapproved by the
commission.
In the ease involving the increases
by the railroads in western trunk line
territory the commission also declined
to approve the proposed advances in
commodity rates
The carriers in both cases are re-
quired to cancel, on or before March
TO- 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 into eff
feet the existing rates for at least two
years.
In the case of the railroad commits
sion of Texas against the Atchison, To
peka & Santa Fe railway and other
carriers, known popularity as the south
western rate case the commission de-
clned 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 $1.20 to $1.29, to
$1.25.
On the remaining classes the defend
ants are required to restore the rates
in effect before the increased rates
were published.
m &C. Cv,Y-i -iy,n
Both the eastern and the western
eases were brought to public attention
in the spring of 1910. Just prior to
the enactment of the existing inter
state commerce law, which, In part,
became effective June IS, 1910, the
railways of official classification ter
ritory-forty-o in all-and those OF
Western Trunk Line association terri
tory fled with the commission tariffs
making general increases In their
freight rates.
The tariffs filed by the eastern lines
increased the first class rate between
Nv York and Chicago points 10 cents
a hundred pounds-from rs to 80 cents
and made proportionate 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 ap-
proximately - per cent of the total
freight tonnage.
Approximately the same amount of
tonnage was affected by the increases
proposed by the western lines, but the
class rates were not affected in any
way. Commodities alone were IN
creased, the average advance on about
ls0 different articles being substan-
tially 16 per cent, the increase varying
from about 4 per cent in some cases to
80 per cent in others.
At the time the tariffs were filed
the commission had no authority to
suspend advances in rates pending an
investigation of their reasonableness;
but after conferences with the com
mission and with President Taft the
railroad officials agreed voluntarily to
suspend the rates until August J..
Meantime, on June Is, the present law
was passed. giving the commission
power to suspend rates. subsequently
the proposed tariffs again were sus-
pended voluntarily, first until Novem-
her | and later until February l, 1911.
The commission found itself unable
physically to conclude its considera-
tion of the cases by February j, and
again the rates were suspended until
March 10.
In Withholding finally its approval
of the proposed increases, the com
mission holds--and its decision in both
the eastern and western cases was
the carriers did not
in the proceedings sustain what the
law imposes upon them, namely, the
burden of proof that absolutely neces-
sitv existed for the advances pro
posed.
Discussing the eastern case, Commits
sioner Prouty denies that the defend
ant carriers are justified at this time in
demanding additional revenues from
the public services which they are Civ
ing. though he comedies that the in
crease in the labor accounts for the
roads during last year has been some
five to eight per cent of their pay
rolls, aggregating for the fifty-one
Ines approximately $35,000,000 year.
The opinion holds, however, that "the
carriers have not, by showing that the
increases in wages more than equal
the increases in rates, made out the
reasonableness of the proposed rates,
because it appeers that during the
year ending June 30, 1910, the net
earnings of these railroads aggregated
$5l 900 900 more than during the year
1909.
"Before any general advance can
re permitted it must appear for a rea'
sonaLle certainty that carriers have
exercised proper economy in the pur-
chase Of their supplies, in the payment
of their wages ard in the general con
duet Of their business There is no
testimony tending to show the cost o.
reproducing properties. It is plair
that a physical valuation would in
trodueed into the calculation new ele-
ment which might lead to different
conclusion. The conclusion reached
here extends, therefore, no further
than the facts upon which it is
based. -