The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-18
Interstate Commerce Commission Hands Down
Long Awaited Decision Today, Granting
Request of Railways.
PRESENT CONDITIONS JUSTIFY Ri. {
Revenues Of Companies are Shown TO be Low
Than Since 9O8-European War
Considered in the Decision.

! rail" Joint shipments. Increased rev-
enues Of about $50,O0o,000 to the raj
roads, numbering about 125 affectsl.
are expected
/, Increases in rates on cement, starch
brick. tile, clay and plaster, denied in
the former application, were granted
today under certain limitations.
Generally the commission held:
Joint rates between official classifica-
tion territory (the east) on the ons
hand and southeastern territory,
southwest and points east OF Missouri
river on the other may be increased
not to exceed five percent Of the divi-
sion Of the rate accruing to the car
riers in official classification territory.
If these increases involve a change in
1 the relationship under the long and
short haul rule between intermediates
points and more distant points outside
of official classification territory, Fre-
lief from the fourth section Of the
act must first be secured on regular
application
"The conflict In Europe" said the
commission, will doubtless create un-
usual demand upon the worlds loan
fund OF free capital and may be ex-
pected to check the flow Of foreign
! investment funds to American rail-
roads. 1t appears that our railroads
| represent the bulk of European invests
ment IN this country. The rate of in
terest-the hire of capital-has risen
during the last decade and may rise
still further. It is computed that in
I 70 1917 hn por ape
must arrange for the payment or re-
funding of securities aggregating over
100000, 900.
while we differ as to the relative
Importance to be attached to the var1-
GUS considerations presented we
agree in the conclusion that by vfr-
tue OF conditions obtaining at pres
ent, it Is necessary that carriers rev.
enues be supplemented by increases
throughout official classification terri
tory. Whatever the consequences OF
the war may prove to be. We must
recognize the fact that it exists, the
fact that it is calamity without pre-
cedent and the fact that by 1t the
commerce Of the world has been dis
arranged and thrown into confusion"
''For the fiscal year just ended
the commission continued, "the net
operating revenues as shown by the
carriers are lower than was estimated
or anticipated when the original re-
port was issued. Not since 1908 have
the net operating revenues been SO
low as In the fiscal year ending June
last From whatever comparative
standpoint used, the net operating rev.
enues Of the last fiscal year must be
regarded as unduly low.
while the gross revenue in that
year declined only about S,4 percent.
the net revenu., shrank approximately
III percent.
"The fact remains that if increase
in depreciation and betterment ac-
counts in the last fiscal year over the
average for five years were added to
their net operating income for the
last year, the results of operation
would still fall far below fair return
on the amounts carried upon the books
as an Investment in property.
The like may b, said as to the
recent enlargement in expenditure on
roadway newer type steel cars and
locomotives
"The case shows while some main
tenance is being deferred. other main.
tenance deferred during the last fis.
cal year is now being made and that
the expenditures therefor during the
months of July and August measured
up to the level of recent years The
case also shows that transportation is
being reduced through the laying off
CONTINUED on page 2.) i