El Paso herald. (El Paso, Tex.) 1901-1931, 1911-02-24
RAILROADS CANNOT INCREASE RATES.
DECLARES INTERSTATE Commission

ting the increases into effect. Action
was taken promptly by attorney gen
eraI Wickersham, who obtained an in
junction in the federal courts of Mis-
souri,, which prevented the roads from
carrying out their contemplated action.
The situation resulted in a confer
ence at the white house between presi-
dent Taft and western railroad presi-
dents, when it was decided that tie
matter would be left in statue quo,
pending the adoption by congress Of
the Mann-Elkins act which made Ger
tain amendments to the existing inter-
state commerce law, giving the COM
mission power to suspend and investi-
gate increases In freight rates.
Injunction withdrawn.
In consideration of the conciliatory
attitude Of the railroads the federal
Injunction was withdrawn.
Immediately following this confer
ence the eastern railroads published
rates. which contemplated increases in
freight and passenger schedules. set
ting forth the argument that increases
in wages, supplies. and maintenance
demanded additional revenues. The
rates were to have become effective on
July 1.
President Taft requested the presi-
dents Of these roads TO attend a con-
ference at the white house for the
purpose Of effecting an arrangement
such as was made with the western
railroad presidents, which was done.
On June 10 the Manns- Elkins act
was passed by congress, and by agree
ment between the interstate commerce
commission and the railroads, the
whole question of increased rates was
laid before the commission for invest
igation as to the reasonableness of the
increases The rates were suspended
roads Later the date was changed
to February 1. 1911, and then to
March 10
Starts Investigation.
In the meantime, however. the COM
mission undertook to investigate the
question. Conferences were held at
Chicago, New York. and at Washing
ton, during the course of which the
whole matter was threshed out. Ship
pers. individuals and railroad interests
were given equal chance in laying be-
fore the commission any matter that
was material to the questions involved
Railroad presidents took the stand,
urging that increases should be al
lowed to the roads and exhibiting the
alternative of business depression
strikes and the throwing out of en-
ployment of thousands Of workmen.
The shippers on the other hand ad-
vanced arguments tending to show that
the rate increases were not necessary,
and that If IL should be allowed the
cost Of living would be much greater
in the future than 1t had been in the
past.
The conferences and hearings were
brought to a. close in Washington
after two weeks had been consumed by
the commission in hearing testimony
were submitted to the COM
mission in January by the respective
parties. Elaborate briefs were fled by
the railroads, the attorneys Of which
are among the most, prominent lawyers
in the country. In behalf of the ship
pers in all sections Of the country, hun
dreds of briefs were submitted to the
commission for consideration.
The contentious of the railroads
practically amount to this:
Wages increased, s34. 600; net
revenues, s27.000,000. Under existing
rates. the railroads would lose about
5 Z, 0O0, geo annually. Few revenues are
large enough to permit Of divi-
dend of percent, and provide q sink
ing fund. Bonds Of the railroads are
not commanding a good price on the
market
Bad management Charged.
The shippers argued that the rail-
roads were not efficiently managed.