The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-03-01


State commerce commission decides
against the railroads in both the East
ern and Western rate cases. The de-
cision. eagerly awaited by roads and
shippers alike. was handed down late
this afternoon.
Proposed advances In class freight
rates IN official classification territory.
aggregating among all the roads in
the territory about s27.o0O.0 900 a year.
were dlsapproved by the commission.
In the case involving the increases
by the roads In Western trunk lile
territory. the commission declined To
approve the proposed arrangement
In rates.
The carriers In both cases are re-
quired to cancel. on OF before March
10. their advanced tariffs and restore
their former rates. which are the rates
now I'm effect. III this requirement is
not complied with. the commission
will issue a formal order suspending
the proposed advances for at least
two years.
In the case Of the railroad commits
sion OF Texas. against the A., T. and
Santa Fe Railway. and other carriers,
known popularity as the Southwestern
case. the commission declined to dis
turb the commodity rates OF the first
class rates complained OF. The de-
PENDANTS are ordered. however. to re-
duce the second-class rates, which
were increased from s1.21 to s1.3s.
10 ti.25. On the remaining classes
the defendants are required to restore
the rates In effect before the Increased
rates were publishd.
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 I'm the ma
ture OF surprise To railroad officials
and other experts. who had followed
closely the proceedings. a majority of
whom believed the commission would
grant some increase. to the Western
lines at least.
After considering exhaustively the
whole subject, however. from every
viewpoint, the commission could not
see Its way clear to grant an advance
In rates. although 1t comedies that, in
the case Of some Of the roads. an in
creased revenue is needed. 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
dividends upon existing rates. while
other carriers I'm the same territory
were barely able to make both ends
meet.
In the Westera case. the carriers
entered plea for increased revenue
In order that they might have ad-
ditional money to put into improve
ment and betterments. which would
enable them 10 handle with greater
facility the constantly increasing
traffic OF the country.
In Withholding its approval Of the
proposed increases. the commission
holds-and It's decision In both the
Eastern and Western cases was
unanimous-that the carriers did aot
In the proceedings sustain what the
law imposes upon them. 1. G. the bur
den Of proof that absolute necessity ex-
listed for the rates proposed.
After considering fully that question
OF Just how far freight rates properly
can be increased on account OF the
extremely expensive improvements re-
quired by the passenger service OF
the lines. and analysing the financial
and operating methods OF several
Eastern roads including the PennsyI-
vania. the New York Central. the Balti-
more and Ohio. the Lake Shore and
Michigan Central. the opinion con-
cludes:
ut seems that the roads have not
sustained the burden. which the stat
ute places upon them. OF justifylng
the proposed rates insofar as that
justification depends upon necessity
for greater net revenue.
There Is no evidence to show the
roads have established the necessity
for higher rates.
Before an advance ia Dcrmitted n
must be- shown that the carriers have
exercised proper economy IN the pur-
chase Of their supplies. in the pay
ment OF their wages. and In the gem
eral conduct Of their business. ''hrrc
is no testimony tending To show the