New Ulm review., 1911-03-01
DENIES RAISE IN
FREIGHT RATES
Sweeping Decision BY Interstate
Commerce Commission
SOME INCREASES N TEXAS
= 5t. Il
Advances In Class Freiaht Tariffs In
Official cIassi ification Terri.
rory Disapproved.

Washington, Feb. 24.-The inter.
state commerce commission decides
against the railroads. in both the
Eastern" and the Western" cases
The decision was eagerly awaited by
roads and shippers alike.
Proposed advances in class freight
rates In Official classification territory
aggregating among all the railways in
the territory approximately $27, 600, 600
a year, We're disapproved by the com.
mission.
In the ease involving the increases
by the railroads in Western trunk
line territory the commission also de-
clined to approve the proposed ad.
vances in commodity rates. The car.
riers In both cases are required to can.
Gel on or before March 10 their ad.
vanced tariffs and restore their former
rates, whi;h are the rates now in eff.
feet. II this requirement be not com.
piled with the commission will issue
formal order suspending the pro.
posed advances and putting into eff.
feet the existing rates for at least two
years
In the case of the railroad commits.
sion of Texas against the Atchison,
Topeka and Santa Fe railway and 9TH
er carriers. known popularity as the
Southwestern rate case, the commits:
sion declined to disturb the commodity
rates or the first class rates com
planned Of. The defendants are or.
dered, however, to reduce the second
class rates, which were increased
from $1.21 to $1.29 to $125. On the re-
naming classes the defendants are
required to restore the rates in effect
before the increased rates were pub.
lished.
In brief this is the disposition by
the Interstate commerce commission
OF the most important cases ever
brought to it's attention. In a sense
the decisions were surprise to rail.
road officials and other experts who
had followed closely the proceedings,
q majority of whom believed the com.
mission would grant some increase to
the Western lines if not to the East.
ern.
Lines Pay Good Dividends.
After considering exhaustively the
whole subject, however. from every
view point the commission could not
see its way clear to grant any I'd
vance in rates, although it 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 embarrassed by
the admitted fact that several of the
lines in the territory were paying
good dividends under existing rates,
while other carriers in the same terri
tory were barely able to make both
ends meet, a few Of them scarcely
that
In the Western case the carriers
entered powerful plea for increased
revenue in order that they might have
additional money to put into improve
ments and betterments which would
enable them to handle with greater
facility the constantly increasing traf-
fic of the country. The same argu-
ment was advanced in support of the
proposed advances In official classifi-
cation territory: but Commissioner
Prouty, who wrote the opinion in the
Eastern case, says:
This argument does not appeal to
US. We doubt that practical difficulty
suggested (that of obtaining by loans
suff1 cient money to finance the roads).
and, were it true, It Is not apparent
that the general public should stand
responsibility for the mistakes which
have been made in financing these
railroad systems"
Both the Eastern and Western cases
were brought to public attention in
the spring of 1910. Just prior to the
enactment Of the existing Interstate
commerce law, which, in part, became
effective on June IS, 1910, the rail-
ways of official classification territory
-forty-one in all--and those Of West.
ern Trunk Line association territory
fled with the interstate commerce
tariffs making general in