Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1911-03-03
DENIES / |! J 5 R ! ! ! J |! !
fIlE I: 1 ] 1 RATES / S
Sweeping Decision Interstate
:. Commerce .Gunnll|sIis Iea j: /. /.
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Washington, Feb. 24.4rhe's inter.
state commerce commission decides
against tho railroads in both the
Eastern" and the Western. cases
The decision was eagerly awaited by
"oads and shippers alike. >::1'. So. ::
: Proposed advances In: class freight
rates, il oihctaI classification territory.
aggregatins among Ill the railways in
the territory approximately 81, 100000
Z year. were disapproved by the com.
mission. =. ~,~x ~, -
In the case involving the increases
BY the railroads in Western trunk
line territory the commission also de-
-.
.eltned to approve The proposed ad-
vances in commodity; rates. The car.
riers in both cases are required to can.
Gel on or before March 10 their ad.
vanced tariffs and restore their former
rates.: which are the rates now in e.
feet. = II this requirement be not COM
piled with the commission will issue
a formal order suspending the pro
posed advances and putting into ef-
feet 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 9TH
er carriers. known popularity as the
Southwestern rate case. the commits
sion declined to disturb the commodity
rates or the first class rates com
planned Of. The defendants are or
dered, however. to reduce the second
class rates. which were increased
from $1.21 to $1.2s to $1.25. On the re-
naming classes the defendants are
required to restore the rates in effect
before the increased rates were pub
lished.
In brief this is the disposition by
the interstate commerce commission
Of the most important. cases ever
brought to its attention. In sense
the: decisions were surprise to rail-
road officials and other experts who
had followed closely the proceedings,
a majority of whom believed the com
mission would grant some increase to
the Western lines if not to the East
ern.
Lines Pay Good Dividends.
q, After considering exhaustively the
VII ole subject, however, from every.
view point the commission could NOT
see its way clear to grant any cd
vance In rates, although it comedies
that. in the case of some of the roads,
an Increased 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 under existing rates,
while other carriers in the same terri
tory. were; barely able to make both
ends meet, a few of them scarcely
that.
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. The same argu-;
ment was advanced in support of the.
proposed advances in official classifi-
cation territory; but Commissioned
Prouty, who wrote the opinion in the
Eastern. case, says:
This argument does not appeal to-
us. We doubt that practical difficulty;
suggested (that of obtaining by loans
sufh cient money to finance the roads,,
and, were it true, it is not apparent
that the general public should stand
responsibility for, the. mistakes which:
have been made in financing these'
railroad systems" >.. ..::S:s,s4->.
Both the Eastern and Western cases
were brought to public attention IL:
the spring of 1910. Just prior to the
er actment of The existing Interstate
commerce law, which, in part beca me,
effective on, June is, 1910; the rail
ways: Of official classification territory:
-fortyone in all-and those of West:
ern. Trunk Line association territory
filed with the interstate. commerce
commission tariffs making genera! in:
creases ii their freight rates. u y: