Smyrna times., 1911-03-01
RAILROADS LOSE
FREIGHT RATE WAR
Interstate Commerce COnmis-
sion FOrbidS Increase.
MUST RETURN TO OLD RATES
Increased Tariffs by Both Eastern and
Western Lines Must Be withdrawn
After March TO-

fNihCI lOs
The interstate commerce commits |
sion has decided against the railroads
in the important increased freight |
rates cases that have been pending
for several months.
The decision of the commissing is
sweeping beyond all anticipation, even
by the shippers. 1t declines to allow
a single increase by the 600 or more
railroads in the east and the middle
west
1t throws aside as unsubstantiated
the contention of the railroads that
they must have increased revenues to
meet the increased cost of equipment
and operation, and by it's decision cuts
off between $50,00O,OOO and $6O,OOO,O0O
year in revenue which the railroads
had expected to realize from the pro-
posed increase. On the other hand, it
means an annual saving of that
amount to the shippers of the coun-
try.
The commission orders the carriers
to cancel the proposed increases by
March 10, and notifies them that in
the event of failure an order will be
entered continuing the present rates
for two years, thus preventing the
carriers from making any changes in
that period. The railroads may now
appeal to the newly created commerce
court, and it is the opinion of many
of their lawyers that this step will be
taken.
The text of the decision says, with
reference to the eastern roads:
1--WE dislike to tie up by hard and
fast orders these commodity rates, and
we have concluded as to all the rates
involved in this proceeding to simply
require the defendants to cancel on
or before March 10 their advanced
tariffs on file and restore their for
mer' rates, which are the rates now in
effect. If this requirement is not COM
piled with the proposed rates will be
suspended, the ne 'essary findings of
fact made, and the usual two years
order issued as to all tariffs in
volved."
In the western the decision says:
I'VE do not say that the carriers may
they may and confidently believe they
will. If the time does come when
through changed conditions, it may be
shown that their fears are realized or
approaching realization, and from a
survey of the whole field of operations
there is evidence of movement that
makes against the security and last
ing value of legitimate investment and
an adequate return upon the value of
these properties this commission will.
not hesitate to give it's sanction to
increases which will be reasonable"
ut is the law that tariff rates shall
be just and reasonable and alike to
all for like railroad service.
in constituting this law the courts
have given general direction in a
number of cases and by all standards
that have been set this commission,
all of its members concurring, finds
the proposed rates to be beyond the
limitations placed by law upon the
carriers. We shall ask the carriers to
withdraw the proposed tariffs forth
with through their agents and attor
neys in fact, who have filed them. II
such action is not taken on or before
March 10, 1911, the commission will
further suspend these rates, make al
appropriate finding and issue an ordel
directing the maintenance of the
present rates for period of two year:
from that date"