The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-02-24
Railroad Officials Surprised.

In hTIpi, lIl!S IL Inc UISpOSilIpn MAI.
oy the interstate commerce comlntssioE
of the most important cases ever brought
10 its attention. The decision surprised
railroad officials and other experts. who
ma ajority cf whom believed the commits
sion would grant some decrease TO the
western lines. II not 10 tic eastern.
The commission comedies that In 'he
case of some roads an Increased :cVeur"
is needed In what Is known as The
Eastern case the commission was cm-
barrassed by the admitted fact that sew
eral Of the lines in the territory were
paying good dividends upon eslslln:
rates, while other curriers' NJ the same
territory were barely able To make both
ends mcet--a few OF them scarcely that
In the western case The carriers en-
tered powerful plea for increased rcvc.
nue. In order that they might have add:-
boual money To put into improvements
and bettcrmcnts which would enable
them 10 handle with greater facility Tie
increasing traffic OF the coUntiy.
Tho same argument was advanced in
support of the proposed advances in Of
tlclal classification territory. bCt Com
missioner Prouty. who wrote thc opinion
In the eastern case. says:
This argument does not appeal 20 us.
We doubt the practical difficulty sus-
Scstcd Chat OF obtaining by loan suf-
fcicpt money 10 linaucc the roads,. apd
were II true il is not apporent that the
general public should stand responsible
for tho mistakes which have been made
In financing these railroad systems.
History OF the Gases.
Both the eastern and western cases
were brought to public attention in the
spring OF 1910. Just prior to the enact
ment OF the existing Interstate commerce
law. which. I'm part. became effective
classification territory--forty-o ono IN all =
and those OF western trunk line associa
ton territory fled with the commission
tariffs making general increases IN their
freight RI
The tariffs filed nv the eastern lines
increased tho first-class rate between
New York and Chicago points Ii cents
hundred pounds--irom 30 TO 30 cents. and
made proportionaie advances on The 9th
er five classes. Some advances also we've
made on commodity rates; but the great
bulk OF the commodity tonnage OF freight
was not disturbed. The nronosed ad-
vnnces affected approximately II per cent
of the total freight tonnage. approx
mateIy tic same amount OF tonnage WAS
affected by the increases proposed by
the western lines. but the class rates
were not affected in any way Con'mo-
dities alone were Increased the aver
age advance on account $50 different ar
ticles being substantially iG per cent
the increase varying from about per
cent In some gases To oU per cent In
others.
AT the time the tariffs were fled. the
commission had no authority TO suspend
advances in rates pending an invcstisa-
ton of their reasonsblencss: hut after
with President Taft the railroad officials
agreed voluntarily tn suspend the rates
until August /. Meantime. on June Is.
the present law WAS passed giving tho
commission power to suspend rates. Sub
sequently the proposad tariffs again were
suspended voluntarily. first until No
vember ] and later until Fehrunrv I.
1911, The commission found !tyelr nn
able physically 10 conclude it's considcra-
ton of the cases bv Fehruarv I, and
again the rates were suspended until
March Is,
Failed to Furnish Proof
In withholding finally its approv1l ~
tho proposed Increases. the con- mission
hods--and its decision In both the east
ern and western cases WIS unu0innuS
that the curriers' did not in the proceed
ings, sustain what the law imposes upn'l
them. namely. the burden Of proof thrt
absolute necessity existed for the ad
vanccS proposrd,
Discussing the eastern case, Comrris
sioncr Prouty dcnics that the defendant
carriers are justified al this time in do
mandinS additional revenues from tho
public services which they are giving: ne
comedies that the Increase in the labor
accounts for the roads during last year
nc De