The Birmingham age-herald., 1913-05-26
Learning Something of Sen
timent on Interstate Com
merce Commission
EFFICIENCY TO RATE
IN WORLDS MARKETS
Sulphur Industry as Example of In.
dependence of Absolute Free Trade
or the Highest Form of
Protective Tariff
by HOLLAND

New York, May 25.-(Special1-Some
who have long been associated with the
management of one or another of the
eastern railroad carriers especially the
trunk lines, were in Washington at the
time of the recent visit of the world peace
delegates. Railway managers are as So
1citous for the establishment of world
peace as are any of the men in public
HE who came from Europe to the United
states TO take part in the recent cere-
mony. There was abundant opportunity
for these railroad men to get in touch
with prevailing sentiment in Washington
respecting the petition filed by the rail-
road companies with the interstate COM
merce commission pleading that the east
ern freight rate case be reopened There
seemed to be a feeling that the inter-
| state commerce commission is likely to
act favorably upon this petition The
commission expects to consider it in the
latter part of this week.
The information was brought back TO
New York that recent compilations which
nave been made by the interstate COM
merce commission respecting the revenues
and disbursements of the American rail-
roads and, SO far as they 60. to show
that while there has been of late an in
crease OF gross income, still the increase
OF operating expenses has been far great
er' lhls applies especially to the eastern
| carriers. The figures should tend, and
the presumption is will tend to a favor
able disposition on the part of the inter-
state commerce commission toward the
reopening of the eastern states rate case.
The eastern railroad representatives have
askd Tor an increase of 5 per cent in their
freight rates. Several favorable condi-
tions not known a few years ago when
these roads asked for an increase of rates
will, presumably, directly or Indirectly, be
brought 70 the attention of the interstate
commerce commission. One of these is
the fact that shippers are now disposed to
look with more favor upon the PROPOSE
ton that eastern freight rates be in
creased than they have been at any time
III the past. George A. Post who Is pres
dent of the Railway Business association.
a body made up chiefly of manufacture
ers whose products enter into the equip
ment of construction of railroads, and
who are. therefore, in close touch with
the shippers throughout the country, in
timated this morning that there appears
to have been a decided change in the
view of shippers respecting the proposed
Increase of freight rates.
One of the reasons for this change OF
view is the belief that an increase in
freight rates will be followed by an in
crease in orders whichr the railroad com
panies will give to manufacturers of sup
plies. This will tend to general increase
OF business the benefits of which the
shippers will feel.
A Strong Argument
But possibly the strongest argument of
which use may be made at this par
ticular time, is, nevertheless, one which
can only be brought indirectly to the con-
sideration of the interstate commerce
commission. That is an argument based
upon the counteracting effects upon bus-
ness which is likely to be disturbed by
the adoption of the Underwood tariff bill,
a counteracting effect which will surely be
created IL the eastern railroads are per-
mitted to increase their freight rates
per cent. A provision of that kind would
greatly stimulate business activity, and
this stimulus would serve to offset to
some extent any Generalization which the
new tariff law might cause.
If the eastern roads are permitted to in
crease their charges per cent there will
inevitably follow rapid appreciation in
the quotations for the securities of the
railroad companies, and this may lead to
better money market conditions, so that
upon these conditions the railroads may
rely for securing new capital
In Washington it is thought that it may
be wise step to take at this time If the
railroad freight rates were increased by
so small sum as per cent, for that
would tend to give renewed confidence
and encoura cement both to the railroads
and to other business interests which are
now looking with some apprehension upon
the effect of the Underwood bill If 1t be-
comes a law.
A Curious Question
In the many discussions, public and pri-
vate, which have been occasioned by the
recent statement of Secretary Redtield OF
CITY ORDINANCES