The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-28
May ADVANCE RATES
IF LINES STOP WASTE
Commerce Board Says Allow
ances to Industrial Tap
Roads Must Cease.
MILLIONS LOST THIS WAY
United States Steel Is Hardest
Hit by Commissions
Decision.
MILLIONS LOST THIS WAY

WASHINGTON, Jan. c7.--The Interstate
Commerce Commission handed down to-
day a decision which is OF great impor-
lance In regard to the pending request OF
the railroads for n 5 per cent. increase In
freight rates
The commission refers directly to the
advance rate case and for the first time
announces that II will not shrk the re-
sponslbility OF granting a general advance
provided the railroads are able to show
that this Is necessary TO insure a fair re-
turn TO investors.
The commission takes occasion. how
ever. to warn the railroads that they must
conserve the sources OF revenue which
they now have. As IA step in helping them
to do this the commission holds that GER
! tain allowances including remission OF
demurrage charges. division OF rates and
per diem reclaims made TO the iron and
| steel Industries amount TO rebates and Will
have TO be discontinued.
Through this decision the commission.
1t Is estimated, adds SIS. 900, 900 II year to
the revenues OF the railroads affected.
These include the railroads in the terri
tory east OF the Mississippi and north OF
| the Ohio and Potomac rivers
steel Corporation 10 HIT.
The United States Steel Corporation IL
| the hardest hit OF the concerns that have
been enjoying these favors from the rail-
roads.
The case decided by the commission re-
lates only to the iron and steel Industries,
but It will be extended 10 include all In
dustr!es having plant railways. The al
| lowances which are disapproved are made
| by the trunk lines TO industries that own
and operate such plant lines in connection
with their Industrial establishments.
| The allowances are made in the form
| OF divisions OF rates. per diem rec!aims,
rem,ssions OF dernurrage and furnace al.
| lowances, The decision Is regarded here
as only the first OF a series that Will ma
! terially increase the revenues OF railroads
by conserving their present sources.
Here is what the commission has 10 say
Of these allowances In regard TO the pend
| ing advanced rate case:
THE very carriers that are augmentina
| their expense accounts and dissipatine
| their revenues In this manner to the ex-
tent OF many millions OF dollars every
year and for the benefit OF compare
lively few shippers are now complain
ing that their present earnings are in
sufficient and. on that ground. hav,
asked our permission to make n substan
tial increase In their general rate sched
ules.
'In that sense the proposed advance II
rates has certain and definite relation
to this proceeding In this general con
nection It may safely be assumed tina
no substantial part OF the we'll Informed
and rejecting public would deny to tn
owners OF the railroads OF the country
reasonable return on their Investments
nevertheless before they may fairly asl
the general public to share further /:
carrying their burdens II is manifest tina
the railroads must themselves properly
h.Ir ~ h,y, u
ing every service rendered by them con
tribute reasonably TO their earnings.
| This having been done the commits
sion upon an adequate showing OF tn
need OF additional revenues will no
shrink from tho responsibility o
sanctioning such measures inciudin
even general advance I'm rate
AZ may be required to bring REASONABLE
prosperity to railroads no far as thi
may be accomplished under rates an
charges that are reasonably Just alike I
shippers and to the carriers.
Fair and Equal Treatment.
Aside from the right Of the owners q
, the property so devoted to the use O
/, the public to receive from the public
reasonable return on their investments,
is OF profound importance TO the publ
in It's own interest to accord fair an
equal treatment to the owners OF rail
roads. Tor upon no Other OASIS may
. continue to look to private capital for I'll
further development and extension OF on
railroad facilities.
"The general public interest Is there
, fore advanced in a very direct way b
| the reasonable success OF railroad inves
I ments under rate schedules that reason
> ably respect the rights OF shippers. Bl
II further burdens through an increa go
I scale OF rates may justly be imposed q
N the general public, all must agree thi
a unlawful concessions. rebates and pre-
erences in the interest OF IA small pr.
> portion OF the shipping public ought
, be eliminated from the practices OF ca
- | riers.
ut IL therefore appropriate, as II
also our duty on general grounds to 81
anime carefully Into the legality OF Il
II allowances. free services per diem ar
y demurrage concessions ~ the charact,
% | disclosed on the record before u.s.
10 means Of which the revenues Of the ca
riers are 10 heavily taxed and their IA