The Hawaiian gazette., 1914-08-04
'RA|[ROADS WIN A
PARTIAL VICTORY
Interstate Commerce Commission
Renders Decision in Applica-
cation for Rate Increase.

WASHINGTON, August S.-(Asso-
ciatcd Press BY Federal wircleas
Tho Interstate Commerce Commission
yesterday rendered divided opinion
|in the ease Of iiftytwo railroads who
had applied for permission to raise
their freight rates The lines 10 qdes.
tion operate IN the territory east Of
the Mississippi and north Of the Ohio
and Potomac rivers They had asked
for FIVE per cent increase. This Is
Just half the increase which the same
railroads tried TO get approval Of In
1910, bnt failed.
The decision yesterday grants the
Eve per cent increase TO some Of the
railroads, denying Others These will
apply 70 territory north Of the Ohio
and Potomac rivers from vertical lines
drawn through Buffalo and Pittsburgh
west rs far as the Mississippi river.
Commissioners Daniels and McChorll
dissented on the ground that the in.
crease should have been general.
The action is expected TO increase
the income Of the railroads one and
one-half per cent.
IL was deemed that public sentiment
tlDEAItN n IIOAIiNI. UNtloAuU VI wv NV
Implication, and the Interstate Com,
merce Commission Immediately insti-
tuted hearings, at which President viii
lard Of the Baltimore and Ohio, Presi'
dent Delano Of the Monon system.
George Stewart Patterson, general
counsel OF The Pennsylvania, and other
prominent railroad officials gave testi,
mony, Louis d. Brandeis Of Boston
representing the commission and the
shippers, was one Of the leading coun.
sells in opposition.
The contention Of the railroad man
ayers was that In the last three year,
the railroads had spent $600,000,000 h
new capital, but that in 1913 the earn
ings were $i6,000,000 less than in 1919
that the greatest increase in railroad
expenses had come about by highe'
wages, taxes and new investment II
tlie properties; that conditions wcr,
such that the New York Central haS
since September 1918 been forced +,
lay OF $4,000 nleny and Il was strongly
lintimated BY some witnesses that IN
less the situation were relieved the rail
roadp might have 70 accept government
ownership as tho only alternative.
The opposing contentious were il
elect that the railroads were constant
ny enjoying higher revenues; that they
spent more on improvements last yea
than any Other year in history; tina
one terminal alone. hIiilt at cost OF
&lQS DOC, 900 rw0uld have built an en-
tire railroad from New York TO Chi
cago >; and, above all, that the fire.,
services which the railfonda Derformee
FOR large indiAttiil concerns would. 4
paid for, net TIA railroads approx
linately $4,000 900 a wear. Mr.. Bran
deis declared that "a sum approaching
500 nn0.nnp , wear y easily within tn,
railroad : grasp n methods Of ccnsarv
ing revenues which are being suggested
are adopted. :,
The greatest opposition from Shipper
came from those Interested II coal anG
petroleum. and It was charged BY indie
pendent refness that the increase,
freight rates would benefit the Stand
ard Oil Company at the expense Of tn,
independent concerns.
Varions attempts were made TO rep
resent President Wilson as being in IA
vor Of the increase, but he took tn,
stand that the case was before quasi
Judicial body, and no word of the Pres
ident 8 attitude ever was ofiieiall,
given. He did, however, express th,
view that the ease should be determine.
without unnecessary delay.