Omaha daily bee., 1911-01-08

kHAlNeakl line committee territory arose
- over the announced Intention Of
those railroads to make material advances
in their charges for Transporting freight.
The shippers in those two grand divisions
Of railroad geography opposed the ad-
vances upon the ground that those ad-
vances were unnecessary. The earnings OF
the railroads, the shippers claimed were
ample TO pay all expenses. meet the fixed
charges and leave sufficient margin for
dividends and surplus. The spokesman Of
the railroads insisted that the shippers
were not well informed. 1t was true, they
admitted, that the gross receipts Of the
railroads had increased. but they argued
that operating expenses had also increased;
that they were confronted with further
Increases on account of the advances in
wages, and that they must largely augment
their gross receipts to meet the situation
they were facing.
Space will not permit more than the
barest mention Of the development of this
controversy. The shippers interested in
the eastern rates met IN mass convention
at Chicago May II and appointed a con-
ference committee with power to open
negotiations with the eastern presidents.
The eastern presidents ignored the com
mittee and proceeded with the preparation
western shippers was held at Omaha. May
"a. Here the situation was more acute
The western advances had been published
and would become effective June l. The
treatment OF the conference committee ap-
pointed at Chicago was known. Il was
felt that similar move would be a waste
Of time and that drastic action was neoes-
sary. Tho administration was called upon
for aid, through the enforcement OF the
conspiracy clause OF the Sherman anti
trust law. The response was prompt and
effective. Mr.. WickCrsham petitioned for
a restraining order against the Western
Trunk Limo committee roads. Judge Dyer
granted It on May 81. Congress was also
petitionod for help and almost Immediately
put revision In the commerce law that
any railroad which advanced any rate in
effect January l, 1910, or thereafter must
justify its act before the Interstate Com
merce commission II called upon to do so.
Thereupon the eastern and western rail-
way presidents sent committees to the
White House and offered to withdraw the
proposed advances and submit the whole
controversy to the commission President
Taft arranged the basis for such submits
sion The commission issued the necessary
orders and appointed dates for hearings
at Chicago, New York and Washington
for the taking OF evidence upon the ques-
ton Of the necessity for the proposed ad-
vances.
II is probable that the majority Of the
readers of the Times annual review are
not shippers or railroad people In order
that they may clearly understand the mag
nitude Of this controversy, brief explana-
ton and a few figures are necessary. Of
fIcial Classification territory is that part
OF the United States bounded on the east
by the Atlantic ocean; on the south by the
Potomac and Ohio rivers; on the west
by the Mississippi river and on the north
by the Canada line. This great territory
overlaps the western Trunk Line Commit
tee territory, which is bounded on the
east by Lake Michigan and the Indiana
Illinois state line; on the south by the
Observation-Disclosures state line; on the west
by the Missouri river, and on the north
by the Canada line.
Taken together, these two railroad ter
ritorial divisions coincide roughly with
groups I, II, III and vi, as established by
the Interstate Commerce commission and
shown in its statistical report for the fis-
cal year ending June 30, 1905 According
TO that report there were 10000 miles Of
railway in the United States, of which
ll6,60O more than 50 per cent, are included
In these four groups OF the 1900, 200
tons OF freight handled by all the rail-
ways Of the United States that year about
10 per cent CLEO, 10000 tOns) were handled
In these four groups. OF the 5S7 CO., 900
freight train miles that were run in the
United States for the year ended June 80.
80 per cent, were run in groups l. II. III
and vi. Finally. of the 81, 3S5, 100000 total
operating revenues of the railways OF the
United states for the year ended june 80,
1905, the railways in these four groups
earned S1,446,sOOOo0 about 60 per cent. 1t
is impossible 10 indicate accurately how
much revenue would be added to this
vast sum by the proposed advances. Many
estimates have been made, but they are
all predieated upon the movement Of busi-
ness for preceding periods ana might be
nulIfied entirely by the effect upon the
commerce OF the country II the advances
demanded by the railroads should be al
lowed by the commission.
Under the provisions of the newly
enacted law, the railroads found themselves
In the novel position Of making affirm
alive showing in support OF their demands
The eastern lines pooled their issues and
presented the backbone OF their case a
statement indicating that the advances in
WdbNh WAAlNA AlAS1 lloN pCtA NhAAAiNAlNN- u
make, and would be compelled to make
would add Ss5,OO0,OOO per annum TO theiI
operating expense account while their es'
innate Of the Increase I'm their revenues
based on the new rates, would only in,
crease those revenues S2AOO0,u00. These tab,
ulations were introduced by the clerks whC
made them. During the entire New YorA
hearing none Of the responsible executive
officers Of the eastern roads was put upor
the witness stand until the public press, Of
all shades of opinion. had united in ridcuI
ing the sort OF showing that the eastern
railroads made. The traffic executives o.
some OF the principal lines were then intro
duced as witnesses. but il was easy TO Sc,
that their evidence was offered rather [,
meet the criticism OF the press than I,
support the railroad position before TN
commission subsequently, at the Wash
ington hearing the presidents OF the Ncy
York Central, the Pennsylvania and tn
Baltimore & Ohio testified. The gist o
their evidence was that, in order 20 pre-