The Washington times., 1914-02-03
|. {. {. FROWNS ON
FREE DELIVERIES
At Opening Of Rate Hearing
Commissioner Harlan Hits
Gratuitous Service.

Opposition 10 the policy of free
freight delivery to stores vas an
nounced by the Interstate Commerce
Commission today.
several cases filed by Washington
business men following the discon-
tinuauce Of free delivery by railroads
are now pending before the commits
sion.
The views of the commission were
made known by Commissioner Harlan
al the opening Of the bituminaus coal
rate hearing at the New Willard to-
day.
Commissioner Harlan substantially
told the railroads of the country that
By discontinuimS their free delivery
service they would he enabled to in
crease their net earnings to such an
extent that II would not be necessary
to Increase freight rates.
The propriety OF disseminating the
special gratuitoUs services Of this
character should be given serious con-
sideration. he declared.
Increases Are High.
Equally enlightening as forecasting
the view in which the commission holds
the request of the Eastern roads for
permission to increase freight rates was
the declaration that while the increases
suggested by the roads are commonly
referred to as a general increase OF .
per cent, they are in reality much lar
ger.
LAS a matter of fact" the commits
sicn's statement says, although some
OF the proposed rates are slightly less
than per cent higher than the pres
ent rates. on the other hand. some OF
them are as much as 30 per cent higher
than the existing rates.
Commissioner Harlan suggested 10 the
attorneys representing the railroads and
coal shippers at today's hearing that
before proceeding much further along
present lines a hearing should be held
to question the propr.ety OF making
reasonable charges for store door oe-
livery, free ferry service, free elevation
and spottinE cars on private tracks
without charge
Attorneys representing the roads
and shippers will confer with the
commission later in the day to deter
mine a date for these hearings.
Would Quit Free Service.
The discontlnuance of these free
services was suggested by Commits
siOner Harlan as one method by
which the railroads may increase their
revenues. The cost to the railroads
in official classification territory for
per diem reclaims, remission of de-
murrage and furnace rates are de-
clared by the commission to cost the
railroads Si5.000.000 a year. Action
should be taken by the carriers forth
with to abolish all such Illegal al
lowances and free services" the com
missions statement declares
The amount OF the loss to the roads
through free store delivery and other
free services, which are not illegal, have
not been computed, but it is burden
some and expensive to the carriers" the
report savs.
by means of drayage and in other
ways, the commission report declares
IN expressing opposition to free service,
store door delivery is effected for many
shippers at the expense of the carriers.
while the mass OF the shippers using
the same rates have the benefit OF 10
such services. but bear the expense
themselves. Obviously such services are
OF special value to such shippers as are
in a position to enjoy them, but their
cost constitutes a heavy drain upon the
carriers.
Must Accept Burden.
TO the extent, therefore, that these
free services may justly be said to
account for or contribute 70 any mad
equacy in the revenues of the carriers
TO that extent It would seem to follow
that the proposed increase in rates
means that the general chipping public
must accept increased rate burdens in
order that the carriers may continue
without charge TO render these valuable
and costly services to q relatively small
number of shippers"
Commissioner Harlan declared the
commission did not mean to say that
the railroads must adopt this Method OF
increasing their revenue. nor would he
have II understood that he was announc-
ing the definite views OF the commission
on this question Of free service. What
the commission desired. he sad. was
tC go into every question affc"rIn.. the
( expenses and earnings OF the roads.
James {. McCue. general manager Of
the Pittsburgh Coal Company, vas the
principal witness for the bitunluous
shippers today in cUntestlng he appn-
cation Of the roads for permission To-
Increase their rates.