The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-11-29
Recent Advance of Proportional
Railway Rates
Came as a Surprise to Railroad
Men.
DECREASE,TOO
Strange Case of Unexpected Up
ward Revision.
What Railroad Freight Man Has
to Say of 1t.

The state journal a few days age
printed Chicago Associated Press dis
patch to the effect that the Interstate
Commerce commission had ordered
an increase of about 10 per cent in the
schedule Of proportional freight rates
from the Mississippi river to the Mis-
souri, river on traffic originating in At
lantic seaboard cities Wholesale mer-
chants expressed some surprise at the
/ decision, because they had not heard
/ of any action before the Interstate
! Commerce commission for such an in
/ crease. Investigation revealed the
I fact that the railroad freight men
were equally surprised. Then IL was
/ learned that the Interstate Commerce
! commission acted on its own motion.
Last spring. after long series OF
/ hearings. the Interstate Commerce
/ comm ission in its decision in the cele-
brated advance rate case refused 20
| heed the claim OF the railroads that
rates should be increased 10 per cent
between the Mississippi and Missouri
rivers. Now the commission. without
suggestion from the outside, and with
out any evidence, so far as the public
knows, advances the rates from
81 cents LIST class to s. cents 1st class.
IS cents End class to A cents End class.
30 cents Bird class to 32 cents 3rd class
y cents 4th class to p cents 9Th class.
10 cents 5th class to 20 cents 5th class.
/
cent, which was the basis the carriers
tried to make effective, not upon the
class rates as the commission indicated.
but on number Of the commodity
/ rates which. the railroads claimed, were
too low
The same order Of the Interstate
/ commerce com mission made certain
material reductions in class freight
rates between Mississippi river and
/ Missouri. These reductions Will make
proportionate decreases in the class
+ rates between Atlantic seaboard points
and Missouri river cities, including
/ Sioux City. Iowa.
The reductions ordered which must
be established before December 30,
1911, are from 60 cents a hundred
pounds on first-class traffic to 8 cents:
i from IS cents to Al cents on second
class; from 35 to 80 cents on third
! class; from Z to "a cents on fourth
class. and from % TO 20 cents on NTH
class. An average reduction of =
cents hundred pounds is made on
the lettered classes Of freight.
The commission found that the
rates between the rivers, the Missis-
sippi and Missouri. are unreasonable
and discriminatory, particularly as
parts of through rates from eastern
points to Missouri river destinations
J. II. Kocntz, general freight agent
of the Atchison, Topeka x Santa Fe
Railway company, when seen by rep
resentative Of the State Journal. said
that all he knew about the case was
that the interstate commerce commits
sion had announced an increase Ia
freight rates on business from the At
lantic seabOard to the Missouri river.
He did not know why the rates had
been advanced, but supposed the conf
mission decided that the old schedule
was too low.
4 had heard that the Missouri river
jobbers are greatly disturbed about the
increase. but no definite Information Of
this nature has been received at my
.
Then the railroads did not ask for
this increase?" the reporter suggest
ed.
Railroads Did Not Ask for Increase
No. The order of the commission
which resulted in the establishment OF
the scale upon the basis OF 81 cents,
first class. from the Mississippi river
to the Missouri river on business origi-
mating in Atlantic seaboard territory
expires December o. i anticipate that
the commission thought the railroads
would go back TO the scale upon the
basis of 60 cents. first class. No doubt,
realizing that the conditions at present
confronting the railroads are such as
10 justify an advance over the rates
as originally ordered. they simply COM
promised and ordered IN advance
scale to become effective. IL would
seem that the commissioners who nave
superseded the railroad representatives
in the making of freight rates realize
that the railroads are entitled to in
creased earnings. and / believe that
their action in this particular instance
will be endorsed by the thinking busi-
ness men. The railroad situation today.
while not alarming, is far from satis-
factory. If the railroads do not pros
per, certainly other business interests
will suffer prOportionately with them.
An Interesting story.
There is an interesting story I'm this
attempted proportional rate adjust
ment. A proportional rate is rate
that is less when used with another
rate than when used alone. For in
stance: If the rate on a certain class
of goods from Fort Madison to Kan
sas City is so cents per 100 pounds.
the rate between these towns on
shipment originating on the Atlantic
seaboard is fixed by the commission
at 55 cents. The 55-cent rate is
known as the proportional rate.
Now. to get back to the story. Kan
sas city and other Missouri river
cities as far north as Sioux City Pc
titioned the Interstate Commerce
commission for an adjustment Of rates
from the Atlantic sea board which
would permit the jobber at the Mis-
souri, river cities TO handle goods
through from seaboard upon a basis
of rates less than the combination OF
locals through either Chicago or st.
Louis. The commission. after long
and somewhat tedious investigation.
established a system of proportional
rates from the Mississippi river upon
traffic originating in the Atlantic sea-
board cities to the Missouri river cities
1st class 81 cents