Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-08-02
RATE INCREASES
CRANTEDBYL.C.C.
TO SOME ROADS
Railways West of Pittsburgh
to the Mississippi Profit
by Divided Decision.
FIVE PER CENT ALLOWED
ON MOST FREIGHT TARIFFS
Lines in East Must Be Content
With Present Reve-
nues.
MANY REFORMS ADVOCATED
Denied That Carriers Face Crisis
Advocates Abandonment Of Free
Service-Suggests Increased
Passenger Fares.
FIVE PER CENT ALLOWED
ON MOST FREIGHT TARIFFS
MANY REFORMS ADVOCATED

IN divided opinion yesterday the in
terstate commerce commission granted
some of the ) per cent freight rate in
creases asked by the eastern railroads
and denied others
Increases will apply in the territory
north of the Ohio and Potomac rivers,
and from a vertical line drawn through
Buffalo and Pittsburgh west as far as
the Mississippi river. All class rates and
many commodity rates are increased 5
per cent in that section.
No advances whatever were permitted
east from Buffalo and Pittsburgh to the
Atlantic seaboard. That excludes from
the area from which the railroads will
receive benefits the greatest trafac-pro-
ducing centers of the country.
Two Dissenting Voices.
Commissioners Daniels and 1IcChord
uissented from the majority opinion.
Mr.. Daniels held that per cent in
crease should have been general-that the
railroads were entitled to 1t. to meet the
high cost of living. Mr.. McChord held
that the reasons which the majority held
to warrant an increase west Of Pitts
burgh applied equally to the territory
east.
The majority, headed by Chairman Har-
Ian. held as to rates west of Pittsburgh
that they were the lowest in the country
and warranted an increase. While it
was held that the income of the eastern
railroads was smaller than demanded in
public interest, no showing had been
made warranting a general Increase. The
New England roads and those in Central
Freight Association territory was hnan-
cial reorganization upon sound basis.
1t was held that rather than raising
l. <7f
continue costly free services to shippers,
develop efficiency of personnel and equip
ment, stop giving free passes and pos
sibly increase their passenger fares to
public demands
Denounces Propaganda.
The crisis" which railroad managers
protested was confronting them was pro-
nounced to have little foundation. The
commission denounced what it character
ICED a propaganda to influence its
decision and added there was no doubt
it had seriously aggravated the pres
ent commercial depression"
Such advances as are allowed are ex-
pected to increase the income of the rail-
roads about IA per cent. Such principal
east and west roads as the New York
central. Pennsylvania. Erie and Balti-
more and Ohio will benefit by the ad-
NauceS TO tne extent L0at tney nave ENeS
rtinni2g from the east over into the ter
rtory in which the advances apply.
Coal. which alone comprises more than
ne half the total traffic of the railroads.
brick. tile, clay. starch, cement. iron ore
and plaster. Neither will there be any
increases on lake and rail rates.
Summary Of Decision.
A summary Of the decision prepared
by the commission follows:
THE contention Of the railroads that
their revenues under the present scale
OF rates are inadequate is sustained, the
commission saying that the operating in
come Of the railroads In official classifica-
tion territory, taken as whole. is small
er than is demanded In the interest of
both the general public and the rail-
roads.
THE present financial difficusees of the
railroads are recognized by the COM
mission as problem not only of the
railroads. but Of the public which 1t is
the duty of the commission to help to
solve. On this point the commission
says, speaking of the need of the car
riers for additional revenues that 1t is
our duty and purpose to aid as far as we
legally may. in the solution of the PROP
lem as to the course carriers may pur-
sue to meet the situation
Classification Territory.
The commission points out that the
official classification territory embraces
three rate territories. known as the New
England territory. lying east of the Hud-
son river: the trunk line territory, lying
central freight association terbmetbmetb
between the New England territory and
the Buralo-Pittsburgh line. and the
Central Freight Association territory.
lying between the Buffalo Pittsburgh
line and the Mississippi river, and that
the financial and traffic conditions Of the
railroads operating in these three rate
territories differ widely. The commission
finds that the rates in Central Freight
Association territory. as a whole, are not
only lower than the rates in either trunk
line or New England territory, but that
they are lower than the rates IN any
other part of the United States. II the
average freight rate had been as high
on the Central Freight Association ter
ritory lines as on the roads in trunk line
territory the former would have earned in
ls13 SO. 900 more than they actually
did. and that the twenty-eight repre-
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