El Paso herald. (El Paso, Tex.) 1901-1931, 1911-02-24
Rate Case Hearing Results
in Order to Restore Old
Rates.


washington, D. c., Feb. 24.-Both in the
eastern and western rate cases the in
terstate commerce commission has an
nounced that the railroads are not en-
titled to any Increase in rates. The
commission disapproved the proposed
advances and ordered the carriers by
March 10 to withdraw the proposed
rates, leaving the old rates in effect.
The decision was handed down late
yesterday afternoon
Surprise to Railroad Men.
The decision surprised railroad Of
ficiaIs the majority Of whom believed
the commission would grant some in
crease to the western lines, il not to
the eastern The commission comedies
that in the case Of some of the roads
an increased revenue is needed In
what is known as the eastern case, the
commission was embarI assed by the
admitted fact that several of the lines
in the territory were paying good divi-
dends upon existing rates while other
carriers in the same territory were
barely able to make both ends meet-a
few Of them scarcely that.
In the western case, the carriers en-
tered powerful plea for Increased
revenue in order that they might have
additional money to put into improve
ments which would enable them better
to handle the constantly Increasing
traffic
The same argument was advanced in
support Of the proposed advances in
official classification territory; but
commissioner Prouty who wrote the
opinion in the eastern case says:
This argument does not appeal to
US. We doubt the practical difficulty
suggested Chat Of obtaining by loan
sufficient money to finance the roads,,
and were IL true, 1t is not apparent that
the general public should stand re-
sponsible for the mistakes which have
been made in financing these railroad
systems
The Southwestern Case.
IN the Southwestern case, the opin-
ion in which was prepared by commits
sioner Harlan. the amount of the in
creased revenue involved in the pro-
posed advances was not so consider
able as in either of the cases pre-
scented herewith.
In the general rate revision made
by the carriers, the first class rate
from st. Louis TO Texas common points
was increased from $1.37 to s1.4T and
corresponding increases were made in
the other classes. Commissioner Har-
Ian finds that the carriers in the south
west have not prospered as have others
in many parts Of the country and in
common with the other commissioners
declines to disturb the advanced first
class rates.
As the lower class rates affect an
increase on considerable volume of
traffic, S%e contentious of the carriers
are substantially sustained.
The decision just announced con-
cludes one Off the most far reaching
cases in the history of the railroad
supervision since~the interstate COM
merce commission was organized. It
is a result Of consistent investigation
on the part OF the commission for more
than two years. involving careful scru-
tiny of thousands Of rates and sched-
ules.
Started Two Years Ago.
The cases originated about two
years ago when certain western rail-
roads operating west of Chicago an
nounced that rates in general would
be advanced. Announcement was made
later that roads operating east Of the
river. and north Of the Ohio
and Potomac rivers would raise rates.
1t was not, however, until April. 1910,
that the western lines definitely de-
cided to advance all freight rates, CIV
ing notice that on June l following
advances would become effective.
Shippers Take Action.
Shippers in the middle west, realiz-
ing that the advances would increase
the cost of commodities about 10 per-
cent applied to the president, asking
that the federal anti-trust law be in
voked to enjoin the railroads from put