Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-02-25

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Washington, Feb. 24-The Interstate
commerce commission caused q wide
spread sensation by deciding against
the eastern" and western cases
The decision, eagerly awaited by roads
and shippers alike, was handed down
late yesterday afternoon.
Proposed advances in class freight
rates in official classification territory
aggregating among all the railways In
the territory approximately 327,0OO,-
900 year, were disapproved by the
commission.
In the case involving the increases
by the railroads in western trunk line
territory the commission also declined
to approve the proposed advances In
commodity rates. The carriers In both
cases are required to cancel on or be-
fore March 10, their advanced tariffs
and restore their former rates, which
are the rates now in effect. II this
requirement be not compiled with, the
commission will Issue q formal order
suspending the proposed advances and
putting into effect the existing rates
for at least two years.
southwestern Rate Case.
In the case Of the railroad com
mission Of Texas against the Atchison.
Topeka and Santa Fe railway and
other carriers, known popularly - the
southwestern rate case, the commits
sion declined to disturb the commodity
rates or the first class rates. The de.
PENDANTS are ordered, however, to re-
duce the second class rates and on tho
remaining classes to restore the rates
in effect before the increased rates
were published.
In brief, this il the disposition mad0
by the interstate commerce commits
sion of the most important cases ever
brought before It, The decisions were q
surprise to railroad officials and other
experts. q majority OF whom believed
the commission would grant some In
crease to the western lines II not to-
the eastern.
Some Roads Need increase.
The commission comedies, that. IN
the case Of some Of the roads, an In
creased revenue Is needed. In the east
ern case, the commission was embar-
rassed by the admitted fact that sew
eral OF the lines were paying good
dividends upon existing rates while
Others were barely able to make both
ends meet.
In the western case the carriers en-
tered powerful plea for increased
revenue for money to put into I'M
proyements which would enable them
to handle the constantly increasing
traffic.
Commissioner Prouty, who wrote
the opirion in the eastern case, says
Of this point:
ut is not apparent that the public
should stand responsible for the mis-
takes which have been made In imam
cling these railroad systems"
The tariffs filed by the eastern lines
increased the first class rate between
New York and Chicago fifteen cents
hundred pounds-from Is to 80 cents;
and made proportional advances on
the other five classes. The great bulk
of the commodity tonnage OF freight
was not disturbed. The proposed ad-
vances affected about fifteen percent Of
the total tonnage.
Approximately, the same proportion
Of tonnage was affected on. the western
lines, but the class rates were not at
|fected in any way.
Commodities alone were increased.
the advance on about 180 articles av-
eraging 16 percent, the increases vary
ing from about four percent to FIFTY
percent.
Carriers Did Not Prove Case.
In withholding its approval OF the
proposed increases, the commission
unanimously holds that the carriers
did not sustain the burden OF PROOF
that absolute necessity existed for the
advances proposed.
In his discussion Of the eastern case.
Commissioner Prouty said: "The rail-
road rates Of this country have not
been constructed. as rule, upon any
scientific basis"
! No general advance in rates should
be permitted until carriers have ex-
Continued on Page 81