Western Carolina Democrat and French Broad hustler. [volume] (Hendersonville, N.C.) 1913-1915, 1913-07-31
RATES EASTERN ROADS


East Of the Mississippi Petition
Commerce Commission to Permit
Increase of Rates.
Washington, D. c., Especial. .)-The
Interstate Commerce Commission is
about to take up one of the largest
questions yet to come before that
body-whether $50 railroads operating
east of the Mississippi river and
north of the Ohio and Potomac rivers
shall be permitted to increase their
freight rates.
This question is of direct import
ance to North Carolina where Govern
or Craig has just issued call for an
extraordinary session of the Legisla-
ture to adjust freight rates in the State
and incidentally it affects every rail-
road in the United States that operates
across a State line. If the commits
sion authorizes the Eastern railroads,
which ask authority to increase all
rates per cent, representing in the
aggregate $42,OOO,OO0, the same au-
thority will be sought by railroads
operating in other sections of the
country. This is a fact conceded by
all parties in interest.
So the proposal of the Eastern rail-
roads affects all railroads and all
shippers. The pending inquiry will
lie concluded late this year, and "a de-
aision will be announced early in the
new year. According to railroad man
ayers. the outcome will determine
whether the railroads are to be profit
able or Improbable in the immediate
future.
Two years ago the commission re-
fused to permit the Eastern railroads
to increase class rates per cent on
the ground that the evidence present
ed did not warrant the increase
sought. In the present case the rail-
roads want authority to increase all
rates, not alone class rates.
In asking authority to increase
rates the railroads say they are pre-
pared to show that the cost of con-
Quoting the business of the carriers
has been, and is being steadily raised
by increases in capital charges, in
creaseS in wages, increases in taxes,
Increased burdens imposed by legisla-
tive enactment, such as extra crew
laws, employers liability and compen-
sation acts, ELIMINATING of grade, cross
ings, the installation of various ap-
pliances, and in various other re-
spects. In further justification of the
increases asked the, railroads say
that they should expend large sums
OF money for Improvements; that
these improvements are demanded by
existing and future transportation
conditions, "and must be made if your
petitioners are to satisfy the needs of
the public for improved and additions
al facilities"
Deciding to make an inquiry to de-
termine the reasonableness of the in
creased rates asked, the commission
propounded these queries:
"Do the present rates of transpor-
tation yield to common carriers by
railroad adequate revenues. If not,
what general course may carriers
pursue to meet the situation?' ?'
Discussing the difficulties of the
problem presented to the commission
involved in the application for author
ity to increase rates, member of the
commission said:
cit is difficult question to pass
upon. Take the case OF the Erie and
the Lackawanna roads. One OF these
roads is very prosperous and does not
need Increased rates. To grant it the
rights to increase rates would be to
lay a burden on the shipping public
with which it deals. The other. road
is not so prosperous and may be able
to show that 1t needs additional reve-
nues. These roads are competitors.
If you permit one to increase rates
you must grant the same concession
TO the other. In the case of the pros
porous road, it would be unjust to- lay
additional burden on the shippers.
The commission has no authority 10
impose a differential rate. This is
one of a number of situations that ex-
ist that will tax the ingenuity of the
commission to meet"
Preliminary work leading to the
general inquiry is now being done by
field officers of the commission. The
commission will begin the actual IN /
.ouiry early in the Fall. Practically
All the resources of the commission
will be brought into play to conclude
the investigation at the earliest possl-
bIe date. It is hoped that the inquiry
will be concluded in time to enable
tho commission to make decision
ear1v in the new year. Until then the
railroads must worry along with the
present rate situation.
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