Milford chronicle., 1911-03-03
RAILROADS LOSE
FREIGHT RATE WAR
Interstate Commerce Commits
sion FOrbidS Increase.
MUST RETURN TO OLD RATES
Increased Tariffs by Both Eastern and
Western Lines Must Be Withdrawn
After March 10.

After March TO.
The interstate commerce commits
sion mas 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 its decision cuts
off between $4,000 600 and S60,000,0O0
a 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
mount to the shippers of the coun-
The commission orders the carriers
o 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:
I'VE 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 necessary findings Of
fact made, and the usual two years
order issued as to all tariffs in
yolved."
In the western the decision says:
we do not say that the carriers may
not increase their income. We trust
they may and confidently believe they
will If the time does come when,
changed conditions, it may be
shown that their fears are realized or
realization, and from
survey Of the whole field OF operations
there is evidence of a movement that
makes against the security and last
ing value of legitimate investment and
an adequate return upon the value Of
-hese properties this commission will
not hesitate to give its sanction to
Increases which will be reasonable"
at. is the law that tariff rates shall
1e just and reasonable and alike to
Ill for like railroad service.
In constituting this law the courts
nave given general direction in
lumber of cases and by all standards .
hat have been set this commission, /
Ill of its members concurring, finds .
he proposed rates to be beyond the /
limitations placed by law upon the /
,arriers We shall ask the carriers to (
withdraw the proposed tariffs forth
With through their agents and attor-
leys in fact, who have filed them. If
uch action is not taken on or before
March 10, 1911, the commission will
urther suspend these rates. make an
appropriate finding and issue an order
Erecting the maintenance of the
resent rates for a period OF two years
rom that date