The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1911-02-24
Interstate Commerce Commission Decides
Against All Forty-One Roads.
COMMODITY AND FREIGHT RATES D|SAPPR0v{O
Opinion Holds That Carriers Do Not Need Increased
Revenues to Maintain Credit Insure Them
Against Adversity---Roads Did Not
Establish Burden OF Proof.

Washington, Feb. 23.--The interstate
commerce commission mas decided
against the railroads In both the
eastern ANA the western cases. The
decision was handed down late this
afternoon. Proposed advances In class
freight rates IN official classification
territory. oggregating among, all the
railways IN the territory approximate
ly s2I.600,000 q year. We're disap-
proved by the commission.
I'm the involving increases by the
railroads IN western trunk territory.
the commission also declined to ap-
prove the proposed advances In COM
modify rates.
The carriers i'm both cases are re-
qnired to cancel on or before. March
10, their advanced tariffs and restore
their former rates. which are the rates
now In effect. If this requirement be
not complied with the commission will
issue u formal order suspcnding the
proposed advances and putting into
effect the existing rates for at least
two years.
Ordered to Reduce.
In the case of the railroad commits
sion Of Texas against the Atchison.
Topeka e Santa he railway and other
carriers, known popularity as the
southwestern rate case, the commits
sion declined To disturb the commodity
rates. or the first class rates COM
plained of. The defendants are ordered.
however TO reduce the second class
rates. which were increased from
s1.2l To s129, TO sl.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 IL the disposition made
by the interstate commerce commits
sion of the most important cases ever
brought to It's attention. The decision
surprised railroad officials and other
experts. who had followed closely the
proceedings, the majority of whom be-
lieved the commission would grant
some increase to the western lines. II
not 10 the eastern.
Some Need Increased Revenue.
The commission comedies that In the
case of some roads an increased rev.
enue Ii needed. In what is known as
The eastern case the commission was
embarrassed by the admitted fact that
several lines In the territory were pay
Ing good dividends upon existing rates
while other carriers In the same ter
ritory were barely able to make both
ends meet--a few of them scarcel,
thnt.
In the western case tho carriers en-,
tered a powerful plea for increased
revenue In order that they might havt
additional money to put into improve
mcnts and bettermenis which woult
enable them To handle with greater
facility the increasing traffic OF TIN
country.
The same argument was advanced II
support of the proposed advances II
official CLASSIFICATION territory. bu
Commissioner Pronty. who wrote thu
opinion In the eastern case. says:
This argument does not appeal 4
Ms. We doubt the practical difficult.
suggested---thnt of obtaining by loal
sufficient money to finance the road
and were 1t true. 1t Is not apparen
that the general public should stan'
responsible for the mistakes Whicl
have been made In financing thcs
railroad systems
Forty. one Roads.
Both the eastern and western case
were brought TO public attention il
the spring of 1910. Just prior to tn
enactment of the existing interstat
commerce law, which, In part becam
effective June 1S. 1910, the railway
OF official classification territory-4
In all---nnd those of western trunk lin
association territory failed with tn
commission tariffs making general in
creases In their freight rates.