The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-23
Can Get All Money Needed by
Merely Obeying Commission.
DISCONTINUE ALLOWANCES"
By Eliminating Illegal Waste
Can Meet All Wage Demands.
Unjust Discrimination Favor
ing Spur-Owners Done Away.

Washington. July 23.-The answer
of the interstate commerce commits
sion to the application of the railroads
east of the Mississippi and north of
the Ohio and Potomac rivers, for
permission to make a general increase
of freight rates will be as follows:
1-Applicarion will be denied.
2-Au railroads will be ordered to
discontinue making allowances to
certain favored big Industrial combi-
nations.
The effect of this will be to relieve
the general public of the necessity of
paying the additional S42,OOO,000 a
year which the railroads in official
classification are asking for and to
strip certain big corporations of
sum ranging between $5O,OOO,00O ana
s100,0OO,000 annually.
The necessity of such an order has
been under consideration by the COM
misSionerS for some time During the
past few months it has secretly made
an investigation TO determine just the
extent to which the practice Of making
allowances to industrial short line
railroads, owned by manufacturing
concerns is prevalent
The commission is now in posses
sion of the names of the firms which
receive these allowances or rebates or
discriminatory rates and in addition
it has the names of the railroads
which paw them the amounts received
by the favored industrial corporations
and something of the extent to which
the practice injuries the competing
manufacturers, who are not in a po-
sition to enter into such arrange
ments.
In a large number of instances it is
claimed the practice amounts to ex-
tortion. The railroads are compelled
by the demands of competition to
make allowances to the manufacturer
for his part i'll transferring his product
over his own insignificant trackage to
the junction where the regular rail-
road takes up his cars Where several
railroads are bidding for such a man
ufacturers' business the one which
makes the most liberal allowance US
! ually gets the freight.
Would Add $40. 900. 900 Revenue.
In view mainly of this fact, it is ex-
pected that the commission will give
the railroads application their ap-
prova1 and cooperation and will
do away with the most important
of existing improper practices in the
railroad business without the neces-
sity of prosecution. The railroads are
asking for per cent. increase on the
ground that they must have increased
revenue to pay their large operating
expenses, and particularly to pay the
higher wages demanded by their en-
ployee-a demand which almost pre-
cfpitated a paralyzing strike a few
days ago and which is now being ar
bitrated under a special act of con-
gress. In rough figures the per
cent. increase asked for by the rail-
roads in the territory east of Chicago
would add 100000 to their reve-
nue..
The recent demands of their en-
p1oyees for wages equal to those paid
railroad workmen in the western and
southern territory would take $17,-
100000 of that amount.
Under the order which the inter-
state commerce commission will issue
they will get more than S42. 100000 by
simply cutting off an improper ex-
pense, and correspondingly, the ia
vored trusts and combinations that
have been muIcting them of the
amount will be deprived of it.
Can Then Pay Increased Wages.
The railroads will be placed in a
position to pay their employees the
living wage they demand, the danger
of tremend Gus strike will be avoided,
and the whole thing will be accom-
plished without the shippers-and
through them the general public-be-
ing required to pay more for the
transportation of the necessities of
life.
And this means another boost in the
cost of living which would mean hard
ship to millions of families will be
prevented