The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-02-24
Commerce Commission Rules
Against ANY Rate Advance
Except in the Case Of the South.
west Territory.
MONEY is NOT NEEDED.
Increased Revenue Has More
Than Balanced Higher Wages.
Can't Hold Public Responsible
for Bad Management.

| Washington, Feb 24.-The interstate
commerce commission has decided
against the railroads in both the east
| ern'' and the western cases.
| Proposed advances in class freight
rates in official classification territory,
aggregating among all the railways
| in the territory approximately ST.
| 100000 a year. were disapproved by tbs
commission.
In the case involving the increases by
the railroads in western trunk lines
| territory, the commission also declined
to approve the proposed advances in
commodity rates. The carriers in both
cases are required to cancel on or be-
fore March 10 their advanced rates.
| which are the rates now in effect. IL
| this requirement be not complied with,
| the commission will issue a formal or
der suspending the proposed advances
and putting into effect the existing
rates for at least two years.
In the case of the railroad commits
sion of Texas against the AtchiSon,
Topeka & 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 $t21 to $1-29, to
$1.25- On the remaining classes the de-
PENDANTS are required to restore the
rates in effect before the Increased
rates were published.
! In brief, this is the disposition made
by the interstate commerce commits
sion of the most important cases ever
brought to its attention. In a sense.
| the decisions were in the nature of q
surprise to railroad officials 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, il
| not to the eaSterl-.
| After considering the whole subject,
however, from every viewpoint, the
commission could not see its way clear
to grant any advance in rates, al
though it comedies that in the case of
some of the roads an increased revenue
is needed.
-he Eastern Gases.
In what is known as the eastern case,
the commission was embarrassed by
the admitted fact that several of the
lines in the territory were paying good
" nds upon existing rates. while
other carriers in the same territory
We're barely able to make both ends
| meet-a. few of them scarcely that.
In the western case the carriers
entered powerful plea for increased
revenue in order that they might have
additional money to put into improve
ments and betterments which would
enable them to handle with greater
facility the constantly increasing traf-
fic of the country.
The same argument was advanced
in support of the proposed advance in
official classification territory; but
Commissioner Prouty, who wrote the
opinion in the eastern case, says:
This argument does not appeal to
U.S. We doubt the practical difficulty
te-rro fnI hof of oh fol niT1O hU N
sufficient money to finance the roads)
and were it true, it is not apparent
that the general public should stand
responsible for the mistakes which
have been made in financing these
| railroad systems"
Both the eastern and western cases
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 on June Is, 1910,
the railways of official classification
1 territory-41 in all-and those of
4 Western Trunk line association terri
tory, filed with the Interstate Conn
merce commission tariffs making gem
eral increases in their freight rates.
The tariffs filed by the eastern lines
increased the frst-class rate between
New York and Chicago points Is cents
a hundred pounds-from rs cents to
90 cents; and made proportional ad-
vances on the other five classes. Some
advances also were made on COM
modify rates; but the great bulk Of
the commodity tonnage of freight was
not disturbed. The proposed advances
affected approximately 10 per cent OF
the total freight tonnage.
The Western Lines.
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
180 different articles being substan-
TALLY 16 per cent, the increase vary
ing from. about A per cent in some
cases to so per cent in others
At the time the tariffs were filed, the
commission had no authority to sus-
pend advances in rates pending an in
vestigation of their reasonableness;
! but, after conferences with the com
mission ard with President Taft, the
railway officials agreed voluntarily to
suspend the rates until August 1.
Meantime on June 49,, the present law
was passed giving the commission
power to suspend rates. Subsequently
: the proposed tariffs again were sus-
pended voluntarily, first until November
. 1 and later until February /, 1911. The
! commission found itself unable physi-
cally to conclude its consideration of
the case by February 1 and again the
rates Were suspended until March Is.
= In Withholding finally its approval OF
: the proposed increases, the commission
, holds-and its decisions in both tie east
ern and western cases was unanimous
. that the carriers did not, in the pro-
! ceedings, sustain what the law imposes
upon them, i. e., the burden of proof,
that absolute necessity existed for tbs
advances proposed
r Rates Not Scientific.
r Tn f7is elaborate discussion q