The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-02-24
RAILROADS REFUSED
INCREASE OF RATES
Interstate Commerce Commits
sion Rules Against Them in
Eastern and Western Cases.
CAN FIND NO NECESSITY
Carriers Now Must Cancel All
Advances and Restore For
mer Tariffs.

WnshinSton, ID. G., February 23.-
The Interstate Commerce Commission
decided aEninst tho railroads In both
the Eastern" and the "Wcstcrn" rate
cnscs. The decision, eagerly awaited
by roads and shippers alike, WINS band
ed down late this afternoon. Pro-
posed advances In class freight rates
In official classification territory, ng-
ErcEntinS among nil the railways ia
the territory approximately s27,0UO,oOO
year, were disappr0vcd by the COM
mission.
In the case involving the Increase
by the railroads in Western trunk line
territory, the commission also declin-
ed TO approve the proposed advances in
commodity rates.
Restore Former Rates.
Tho carriers in both cases are re-
CURED to cancel. on or before March
10, their advanced tariffs and restore
their former rates, which arc the
rates now in effect. If this require
ment be not complied with. the com
mission will issue a formal order sus-
pending the proposed advances and
putting into effect 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
Southwestern rate case the commits
sion declined to disturb the conmod-
ity rates or the frst-class rates com
planned OF. The defendants are order
ed. however. to reduce the second class
rates, which were increased from sl21
TO sl,2a, TO S1.25. On the remaininS
classes. the defendants are required
to restore the rates In effect before the
increased rates were published
IN a &c &c hn IIcy, ;.f
by the Interstate Commerce Commits
sion OF the most important case ever
brought to it's attention. In a sense.
the decisions were in the nature or a
surprise TO railroad officials and other
experts who had followed the pro-
ccedings closely. a majority Of whom
believed the commission would grant
some increase to the Western lines II
not to the Eastern.
After considering exhaustively the
whole subject, however. from every
viewpoint, the commission could not
SEQ its way clear to grant any 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 In the same territory
were barely able to make both ends
meet.
Make Powerful Plea
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.
In withholding It's approval Of tho
proposed Increases the commission
holds-and It's decision in both the
Eastern and Western asses was unani-
mous-that the carriers did not in the
proceedings sustain what the law i'm
poses upon them. l. e., the burden Of
proof that absolute necessity existed
for the advance proposed.
After considering fully the question
Of Just how far rates properly can be
increased on account of the extremely
expensive improvements required by
the passenger service on the lines and
Of analyZing thoroughly the financial
and operating methods of several i'm
portant Eastern roads. including the
Pennsylvania. the New York Central,
the Baltimore and Ohio. the Lake
Shore and the Michigan Central, the
opinion COncludeS:
II seems plain that they have not
sustained the burden which the statute
casts upon them of justifying the pro-
posed advance rates in SO far as that
Justification depends upon the neces-
SHY for greater net revenue. There
is no evidence before us which estab-
fishes the necessity for higher rates.
Before any general advance can be
permitted 1t must appear with reason
HI .n~fo {fof,. = 1
cised proper economy In the purchase
OF their supplies. in the payment OF
their wages and In the general conduct
OF their business. There is no tcsti-
mony tending to show the cost of re-
producing these properties
Optimistic Review.
In lis preparation of the opinion In
the Western case. Commissioner Frank
lin *. Lane made an optimistic re-
view of the situation OF American rail
ways. In beginning. he shows that.
through the regulatory law and It's en-
forcement 1.-The railroads have been
protected against each other, and as
a result the revenues OF the carriers
have increased under regulation, and
their dividends and their surplus have
increased as in no other period OF Our
history. In the last ten years tho rail-
roads OF the United States have bor-
rowed over $500. 900. 900, or twice the
amount Of the national debt e the close
Of the Civil War. This is an evidence
of the faith the public has in these
properties. The rate Of dividends and
the total amount OF dividends have In
creased more rapidly than the addi-
tional mileage built"
Commissioner Lane points out that
the Western roads have increased their
surplus over 100 per cent. in ten years.
In all elaborate discussion Of the flnan-
cial conditions of the various lines. the
opinion holds that the carriers do not
need larger revenues for purposes Of
maintaining their credit or insuring
them against temporary adversity."
A Constitutional Guaranty.
In concluding his opinion. which was
adopted unanimously as the expression
Of the commission Commissioner Lane
says
Tho Constitution OF the United
States guarantees their carriers against
the ntiscation Of their property or