Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1914-12-23
Application of Eastern Lines
Granted In Part BY Today's
Decision of Interstate
Commerce Board.
HEAVY TRAFFIC UNTOUCHED
About 5000 900 More Rev
enue Allowed European
War, High Interest and
Light Business Cited.

washington. Dec. Righteousness HI
freight rates. approximating S per cent
of all the railroads between the At
lantic seaboard and the Mississippi.
north of the Potomac and Ohio rivers.
Were granted today by the Interstate
commission, in a divide
opinion. excepting upon certain heavy
commodities, which comprise a large
bulk of the traffic.
The increases will further apply to
the railroads west of Buffalo n
Pittsburgh. which were granted par
tial advances in the decision of last
August, which denied them altogether
to the roads east of those points. 1t
is estimated that advanced rates will
increase the annual income of the
roads about $780, 900, 900.
The commission made it's decision up
on the showing of the railroads, that
in addition to conditions, from which
they previously asked relief. they now
are confronted with an emergency be-
cause of the war in Europe.
Vigorous dissenting opinions were
filed in the advanced rate case today
by commissioners Clements and Har-
Ian. Both opposed granting increase
In eastern territory, which were al
lowed by the commission. That the
allowing of the increases is morally
wrong is the view of Commissioners
Harlan. He believes it would be de-
moralizing to the Dad Commissioner
Clements criticised the increases in
~ Y ilES iAu OlNi II "AotA5 GIN
un.iuStified.
War Given as Reason.
With Commissioners Harlan and
Clements dissenting. the majority of
the commission declared:
"Whatever the consequences OF the
war may prove to be, we must recog-
nize the fact that it exists: the fact
that it is a calamity without prece-
dent, and the fact that by 1t the COM
merce of the world has been disar-
ranged and thrown into confusion.
The means of transportation are FUN
damental and Indispensable agencies
in our industrial life and for the COM
mon veal should be kept abreast of
public requirements"
summarizing the basis of it's de-
ciSion the majority pOr of the COM
mission said:
The facts disclosed and occurrences
originating subsequent to May 20. 1914.
as presented at the further hearing,
may he summarized under three heads
First. completed returns for the fis-
cal year ending June 80, 1914. and re-
turns for succeeding months; Sec
ond. the war in Europe, and, third, re-
suits of the original order.
When these cases were originally
submitted. as also when the original
report was prepared, the revenue and
expenditure account for June. 1914, and
the property investment account for
that fiscal year, were not available, III
war was unforeseen and the results
of our order were. of course. yet to
come. Collectively. they present a
new situation.'
Order BY Commission
The commission issued this order:
1T is ordered that respondents here
in be. and they are hereby. authorized
to publish and file, by not less h 10
days notice to the Interstate Commerce
commission and to the general public
in the manner prescribed in section
six of act to regulate commerce,
schedules of rates which do not exceed
the limits or transgress the limitations
stated and prescribed in said report.
I 1T is further ordered that the per-
mission hereby granted does not waive
any of the requirements OF the COM
MISSIONS published rules relative to the
construction and filing Of tariff publ
cations. nor any of the provisions OF
the act to regulate as
amended, except as to the notice to be
given"
Need Of Revenue Shown.
"These figures submitted serve to
emphasize our previous finding Of the
need of carriers in official classifica-
ton territory. taken as a whole. for
increased net revenue.
For the fiscal year just ended the net
operating revenues as ShoWn by the
carriers are lower than was estimated
or anticipated when the original report
was issued. Not since 1908 have the
net operating revenues of the carrier
been so low as in the fiscal year ending
June last. In 1908 moreover, the prop
erty investment account of the car
riers was 81. 309, 000, 900 less than in this
fiscal year. The surplus for 1908 afte.
deductins s102, 600, 900 paid in dividends
was SAT, coo, 900, whereas, for the last
fiscal year the dividends paid amount
ing to Sis, 600, 900 drew on the accrued
surplus to the extent of SIS, 200. 900.
From whatever comparative stand-
point viewed, the net operating
revenues fail to show the tendency to
such ~concomitant variation as should
prevail in the transportation industry.
The property investment %ccoun as
now standing on the books of the car
riers. cannot be accepted as accurately
presenting the fair value of their prop
erty devoted to serving the public.
The fact remains that If the in
crease in depreciation and betterment
accounts in the last fiscal year, over
the average of similar allowances for
the five-year period. We're added to
their net operating income for the last
fiscal year, the results of operation
would still fall below a fair return up
on the AMOUNTS carried upon the books
as investment in property.
The testimony shows that, Whila
some maintenance is being deferred.
other maintenance deferred during thu
last fiscal year is now being made.