The Detroit times., 1911-02-24
DECISION AGAINST RAILROADS
VICTORY FOR INSURGENTS



he said. ''but IL viii not do them any
good. The commission did not reduce
any rates. II simply declined to per
nit increases. II was the duty OF
the railroads TO prove the increases
justifiable, and they failed TO do so
The railroads may continue their
rates, under which they are now
thriving. am convinced the appeal
will be futile
The general impression about the
commission was that the railroads and
big business interests Of Wallst
would endeavor to make the effect OF
the decision seem as adverse TO bust
ness as possible. II is expected an
effort will be made TO produce some
verification for the dire predictions
made by Wall-st. interests during the
investigation.
The committee, however. Is in pos
session OF figures and facts showing
the condition of the railroads. their
profits and their resources IN their
present strength and their possipiii-
ties. and there Is no feeling OF rear
that any danger whatever TO the raii-
roads is involved in the decision.
..The plain fact that the railroads
failed TO prove that they needed the
increased rates is looked upon by the
commission as final and undeniabie
proof that continuance OF tneir p,es-
ent tariffs will not work any harusnip
upon them. The commissioners PC
lieye that the railroads VIII prove
even more successful In the comins
wear than they have been under the
same tariffs In the last year.
"The decision OF the Interstate
commerce commission appears TO me
IN he unassailable and 10 open 10
argument only upon one point. saio
Ran Jenroot tRep. Wis.,: 1T Is the
contention of the railroads that I'M
,ess they are permitted to increase
che freight rates they will be unable
to secure capital TO increase and I'M
prove their roads.
This proposition appears TO me 10
he unthinkable. IL means that the
shippers must not only pay the pro-
fits on the capital OF the roads, out
must in addition supply the capital
for enlargement upon which they Will
later be required TO pay interest oy
increased rates. Consider the accu-
muiative effect OF this-the people
forever paying these high tarifis to
provide surplus capital for additional
construction and then being forced to
psy an increased rate as a profit on
this capital which they, themselves
furnished.
The decision has, | think, opened
the question of physical valuation,
because IL has shown that the inter
state commerce commission must In
determining reasonable rates on the
most cases nave some such basis as
physical valuation by which to reach
their findings"
Chairman Judson C.. Clements OF
the Interstate Commerce Commission,
following the announcement here OF
the action of the stock markets.
wrote out and authorized publication
OF the following statement:
No reductions In rates have
been ordered in the eastern and
western advanced rate cases. The
commission simply opposed sew
eral proposed Increases. These
decisions do NOT reduce revenues
of carriers to the amount OF one
cent.
Fight" was the watchword OF rail-
road representatives here today, fol-
lowing their crushing defeat In the
great rate battle at the hands OF the
interstate commerce commission yes
terday. They will fight, they declared.
as longas there Is a possibility Of
appeal IA.
They hope that the decision of the
commission preventing them from In.
creasing rates on single commodity.
will be rev arsed by a higher body, but
at the least, they said, they will in
woke the law with such effect that rate
reductions will be postponed perhaps
for several years.
The first move probably will be TAX
en- within the next few days, when
the railroads will apply TO the new
commerce court for an Injunction
multiplying the decisions This appeal
will unquestionably be made before
March 10, when the commission de-
clared, that unless new and lower
schedules were filed, II will fix rates
for two years.
Whether the commerce court will
grant the Injunction practically tying
the hands OF the commission, Is
question on which authorities radical
ly differ.
IF the commerce court fails u.s. de-
olared the railroad attorneys, I'VE
will carry the case TO the supreme
Court OF the United States. There we
will apply for an Injunction against
the commission, or the court or com
merce, or both. We will produce evil
dence TO prove that these rate In
creases are necessary in order to en-.
able us TO conduct our business prop
erly."
Government officials familiar with
legal procedure said today that the
legal obstacles which attorneys for
the carriers can put in the way of
the effectiveness 1.-THE decisions may
delay them indefinitely.
. Alleged trusts, they said, have held