The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-18

Il
WASHINGTON, Dec. 1S.-The four
years fight o. the eastern railroads
for general advance Of five per cent
in freight rates, was won with the
aid OF the European war today when
the interstate commerce commission
allowed the increase with few ex-
ceptions. The commission made it
plain its action was taken to relieve
the commercial crisis brought on by
the world war.
The exceptions from the increase
will include rates on bittuminous coal
and coke, anthracite coal and iron
ore, and rail-lake and rail-lake-and'
rail and rail-and lake rates.
A fiat five per cent increase is al
lowed on joint rates between official
classification territory-the east--on
one hand and southeastern territory,
the southwest and points on or east
OF the Missouri river on the other;
on interstate rates to and from New
England from and to points in trunk
line or central freight association
mid-west--territory; on rates to and
from New York and throughout of
fetal classification" or eastern ter
ritory.
The increase will affect practically
every railwa- in the United States by
adding approximately S50,000,000 an
nually to their combined revenues.
The railways have stated that such
additional revenues would strengthen
their credit and give stability to their
securities sufficient to enable them
to weather the financial gale of war.
The commission scored the railroads
for misrepresenting conditions in their
previous applications for increase.
The representations of the carriers
in the 1910 cases that without in
creases their credit must vanish, prov
ed strangely at variance with their
subsequent experience in the borrow
ing Of hundreds of millions, the COM
mission said.
"But we do not doubt" the com
mission continued, that the financial
problems Of the carriers have been
made much more acute by reason of
the war, and if we are to set rates
that will afford reasonable remunera-
ton to these carriers, we must give
consideration to the increased hire Of
capital as well as to other increased
costs.
Whatever the consequences of the
war may prove to be we must recog-
nize the fact that exists, the fact that
it is a calamity without precedent
and the fact that by it the commerce
of the world has been disarranged and
thrown into confusion. The means of
transportation are fundamental and
indispensable agencies in our inous-
trial life and for the commonwealth
quirements.''
Commissioner ]. c. Clements dis
sented, taking the view of Louis
d. Brandeis, counsel for the COM
that the advance rate
was simply "a war tax for the exclus-
i've benefits of the railroads" Gle
ments seriously doubted the legality
of the increase.
THE carriers are suffering now
more from want of freight to carry
than from rates." he said 1T would
not seem to be out of line with ordi-
nary prudence and conservatism. pre-
vailing in other lines of industry, IL
the carriers had undertaken to meet
this apparently temporary situation
as have others
I United Press Leased Wire Service ]
WASHINGTON, Dec. 1S.-The in
terstate commerce commission today
granted the application of eastern
railroads for a fiat increase of FIVE
percent in freight rates, except upon
coal. coke, iron ore and lake and