The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1911-02-24

The tariffs filed by the eastern lines
! increased the first class rate between
New York and Chicago points III cents
per 100 pounds-from 10 10 30 cents;
ana made prnportionate advances In
! other five classes Some advances nlso
we're made on commodity rates. bur
| the great bulk of the commodity ton
mage OF freight was not disturbed. The
I proposed advances affected approx
mately II per cent Of the total freight
| tonnage Approximately the same
7, amount Of tonnage was affected by the
\ increases proposed BY the western
/ lines. but the class rates were not
/ affected In any way. Commodities
/ alone were Increased. the average nd
vance on about $50 different articles
being substantially 10 per cent, the in
crease varying from about per cent
1 In some eases to 80 per cent In others.
Voluntarily Suspended.
At the time the tariffs were filed
the commission had no authority to
suspend advances in rates pending an
investigation of their asonableness;
but after conferences with the com
| mission and with President Taft. the
/ railroad officials agreed voluntarily 10
suspend the rates until August l.
| Meantime, on June Is. the present law
was passed giving the commission
power to suspend rates. Subsequent
~, the proposed tariffs again were
suspended voluntarily. first until No
xember ] and later until February l.
1911. The commission found itself un-
able physically to conclude its con-
sidera,ion OF the cases by February |
and again the rates were suspended
4 until March IL.
In Withholding finally it's approval
of The proposed increases. the COM
mission holds--ana its decision I'm both
the eastern and western cases was
unanimons-that the carriers did not,
In the proceedings. sustaia what the
law imposes upon them, namely, the
burden Of proof that absolute neces-
sity existed for the advance proposed.
Labor Accounts.
Discussing the eastern case, Com
missioner Prouty denies that the de-
fendant carriers are justified at this
time In demanding additional revenues
from the public services which they
are giving. lie comedies that the in
crease I'm the labor accounts for the
roads during the last year has been
some 10 D per cent of their payrolls,
aggregated for the Al lines. approXi-
mately $35.000,000 year. The opinion
holds. however. that "the carriers have
not, by showing that the increases In
wages more than equal the increases
In rates. made out the reasonableness
OF the proposed advanced rates, be-
cause II appears that during the year
ending June 80, 1910, the net earnings
OF these railroads aggregated $5l,-
100000 more than during the year
1910"
After considering the question OF
just how far freight rates probably
can be increased on account of tho
Extremely expensive improsa ments
required by the passenger service oi
the lines and analyzing thoroughly the
financial and operating methods OF
several important eastern roads, The
opinion concludes:
1t seems plain that they have moi
sustained the burden which the stat
ute casts upon them of jnstifying the
proposed advanced rates. In SO far as
! that justification depends upon thu
2 necessity for greater net revenue.
Before any general advance can bt
permitted II must appear for rea'
sonable certainty that carriers hay'
exercised proper economy in the pur'
. chase of their supplies in the paymen
e OF their wages and in the general con
g duct of their business. There Is M
O testimony tending to show the cost o.
$ reproducing these properties. 1t II
] plain that "A physical valuation woult
Q introduce into the calculation a nep
G element which might lead to differ