Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-25
NOT TO TAKE APPEAL
PennsyIvania's Decision Re-
garding Rate Ruling.
ANNOUNCES ITS INTENTION
Interstate Commerce Commission
Notified.
COMMENT ON STOCK FURRY
Senator La Toilette Declares That
the Market Is Being Manipulated
for Large Operators.
ANNOUNCES ITS INTENTION
COMMENT ON STOCK FURRY

The action Of the PENNSYLVANIA rail
road officials in notifying the interstate
commerce commission yesterday after
noon that it will not appeal to the newly
created Court Of Commerce from the
findings of the commission mas left the
impression a. the commission office that
the other roads will look at the matter
In the same light and that no appeal will
be taken. The fact that the decision of
the commission was unanimous in all
the cases was believed to justify the
opinion that the roads would prefer per-
haps to make a new application to the
commission on new record of testi-
mony.
The fact that stocks fluctuated indi-
Gated at the Offices of the commission
that special stress should be laid on the
fact that no reduction whatever in rates
was ordered and that these will remain
fication territory as they have been for
more than twenty years.
1t was pointed out that the stocks af-
fected most seriously by the announce
ment of the decision were those of lines
that in no respect could be affected prac-
tically by the decisions. None of the far
western roads, like the Southern Pacific,
Union Pacific, Northern Pacific and
Great Northern, wa sinterested in other
than a sentimental or sympathetic way
in the cases.
Western Roads Not Affected.
One Of the commissioners who would
not be quoted by name, said:
None of the lines west of the Missouri
river could be affected materially by our
n TN, aSfh CT
case. Their rates, and the rates Of all
roads, are just the same today as they
were yesterday. They are disturbed in
neither their rates nor their traffic. Yet
we have the anomalous situation in Wall
street of those very roads suffering most
from the slump in stock prices. Curious
ly enough, Reading. of all the eastern
lines, appeared to suffer most from the
drop in prices, yet, as compared with
many eastern roads. it is doing fine
business
The commissioner called attention to the
heavy fall in the prices of the Pacific
roads, which apparently sustained heavier
losses than some of the eastern lines; yet
he insisted they were not directly con-
cerned in the decisions and only very
moderately concerned even indirectly.
No Formal Orders Issued.
No formal orders were issued by the
commission in the cases decided. 1t was,
suggested that the proposed advanced
rates be annulled before March 10, and
il they We're not withdrawn by that time
the commission would issue an order put
ting the existing rates into effect for at
least two years. On such an order the
railroads could appeal to the commerce
court, but it was argued here today that
il they were defeated in that court they
would be in worse position than now,
because their rates would then have to
remain in effect for two years, in COM
pliance with the commissions order
Senator La Follette's Comment.
Regarding the decision of the interstate
commerce commission in the rate cases,
Senator La Toilette said today:
Nothing in the decision of the inter-
state commerce commission refusing to
permit the railroads to unwarrentedly adj
vance rates justifies a decline in legiti-
mate railroad securities. The decision
does not disturb existing rates. The rail-
roads are permitted to charge the same
rates which have enabled them to earn
an amount sufficient not only to pay
good dividends, but to build up large sur
pluSeS.
THE present furry in railroad stocks
is an evidence that the market is being
manipulated for the benefit of the large
operators and that railroad securities,
generally speaking, are largely watered.
THE average man need have little con-
Germ as to what may come out of a ma
nipulated railroad stock market. He is
greatly concerned that railroads shall not
be permitted to charge transportation
rates to pay dividends upon stock GER
tificates which represent no real invest
ment.
''Just Decision Rendered.