Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-02-24
Decision Comes As Sad Sur
prise to Carriers Who Ex-
peCted to Secure Some Con-
ceSSionS from Commission.
EXISTING TARIFFS TO
STAND FOR TWO YEARS
Powerful Plea That More Rev
enue Was Needed for Neces-
+ Sary Improvements Fails to
Appeal to Government.
ny Morning Journal Special Lsa..a wir.l

tBy Morning Journal Special Leased wirel
Washington. Feb. 2S.--The inter-
state commerce commission has decid.
ed against the railroads, in both the
eastern and the western eases.
The decision was handed down late
this afternoon.
Proposed advances In class freight
rates In official classification territory,
aggregating among all the railways In
the territory approximately $4,000
600 year were disapproyed by the
commission.
In the case involving the increases
by the railroads In western trunk line
territory the commission also decd
ed to approve the proposed advance
in commodity rates.
The carriers in both cases are re-
quired to cancel on or before March
10, their advanced tariffs and restore
their former rates, which are the rates
now In effect II this requirement be
not complied with, the commission
will issue a formal order suspending
the proposed advances and putting in-
to effect the existing rates for at least
two years.
sion OF Texas against the Atchison.
Topeka q Santa Fe railway and other
carriers, known popularly as the
southwestern rate. case. the commits
sion declined to disturb the eommod-
ity rates or the first-class rates conf
planned of, The defendants are or
dered. however. to reduce the second
class rates which were Increased from
s1.21 TO $1.2e. to s1.2b. On the re-
naming classes the defendants are
required to restore the rates In effect
before the increased rates were pub
lished.
The decision surprised railroad Of
ficials. the majority OF whom believed
the commission would grant some in
crease to the western lines, II not to
the eastern.
The commission comedies that In
the case of some Of the roads an In
creased revenue Is needed. In what
is known as the eastern case. the COM
mission was embarrassed by the adj
mltted fact that several of the lines
In the territory were paying good
dividends upon existing rates, while
other carriers in the same territory
were barely able to make both ends
few OF them scarcely that.
In the western case. the carriers
entered a powerful plea for increased
revenue In order that they hight have
additional money TO put into Inn
which would enable them
better to handle the constantly In
,reasing traffic.
The same argument was advanced
IN support of the proposed advances
n official classification territory:
Dut Commissioner Prouty who wrote
he opinion in the eastern case says;
This argument does not appeal to
Is. We doubt the practical difficulty
(that of obtaining by loan
ufficlent money to finance the roads)
ind were II true, II Is not apparent
hat the general public would stand
for the mistakes which
,nve been made In financing these
abroad systems
Both the eastern and western cases
we're brought TO public attention In
he spring of 1910. Just prior to the
nactment of the existing Interstate
law, which, In part. became
Effective on June Is. 1910. the rail-
Ways of official classification terri
ory--41 In all-and those of western
runk line association territory, filed
With the interstate commerce COM
mission, tariffs making general In
reases IN their freight rates.
The tariffs filed by the eastern lines
increased the first class rate, between
lew York and Chicago points, fifteen
ents a hundred pounds--from rs 10
0 cents: and made proportionate nd
ances on the other five classes Some
dvances also were made on COM
,odity rates: but the great bulk of
ne commodity tonnage of freight was
OF disturbed. The proposed advances
ffected approximately fifteen per
nnt of the total freight tonnage. Ap-
the same amount of tom
age was affected by the increase pro-
osed by the western lines, but tho
ass rates were not affected In any
ay. Commodities alone were In
'eased. the average advance on about
80 different articles being substanti-
ly sixteen per cent.
At the time the tariffs were filed
Ie commission had no authority to
Ispend advances In rates pending an
vestigatlon of their reasonableness;
ii after conference with the commits
on and President Taft the railroad
ficials agreed voluntarily to suspend
e rates until August |. Meantime.
June rs. the present law was pass
giving the commission power to
spend rates. Subsequently the pro-
,sed tariffs again were suspended,
first, until November l.
Id later until February !, and then
March is, 1911.
In withholding finally. its approval
the proposed increases, the COM
isslon holds-and its decision In
'th the eastern and western cases
,s unanlmous--that the carriers did
It. in the proceedings. sustain what
g law imposes upon them; that In.
G burden OF proof that absolute ne
ssty existed for the advances pro-
sed.
the eastern case Commits
oner Prouty denies that the defen-
mt carriers are Justified at thia time
.lnt,aa n llitam allttlAnAf rnNnuAana