Arizona republican., 1914-12-19
Needed Fifty Million In- come for Railroads Pro vided by Horizontal In crease of Five Per Cent on Certain Traffic
CONS. HARLAN AND
 CLEMENTS DISSENT
Chairman Says the Needed Income Could Have Been More Easily Obtained by Roads by More Scientific and Reasonable Method
ASSOCIATED PRESS D,sPArcHl

WASHINGTON, Dec. 1S.-A further increase in freight rates was granted the eastern railroads by the interstate com merce commission, in q decision from which Chairman Harlan and Commis- sionerd Clements dissented vigorously With the exception of lake and rail traffic, coal, coke and iron ore and cer- tain other traffic, on which the com mission heretofore fixed rates, adjudi- cated as 'reasonable", all railroad sys- tens operating between the Atlantic seaboard and the Mississippi, north of the Potomac and Ohio rivers, are al lowed q flat five per cent increase for which they have been asking the last four years. The roads hoped to get an increase which would add to the an nual revenue some $50,00O,000 The commissions decision is expected to give them an addition of approximate ly $30,O0O.OOO
 The roads east of the north and south line drawn through Buffalo, Pittshurg and Charleston, w. Va. won by the de- cision increases other than on the traf- l fife excepted, which was denied them in l the commissions decision last August. 1 The roads west of this line, which got partial advances in the August decision received further advances, so that now l all the roads in what is described as | official classification territory will enjoy uniform advances in both class and commodity rates.
 1 In the decision a majority of commis- | sion held that the roads had estab- 1 lished in the latest hearings a greater need of additional net income than ever before. This was due, in part, to the exigencies which arose out of the war in Europe and in part to already eX isting necessity, in the judgment of the commission, for additional revenues to maintain their railroad properties.
 Chairman Harlan, in his dissenting opinion held that sufficient aid had been given to the roads by the decision of August l last, and that the findings of the majority are morally wrong" Commissioner Clements based his dis sent on what he regarded as the ina bility, in law of the commission to take cognizance of anything in making rates or their justice and reasonableness.
 
 of the case is welcomed as a develop ment of vast importance which would hasten, to support the expected general business revival President Wilson is sues no formal statement, but the White House officials say he is greatly pleased over the decision and expects it to have an immediate effect on the country's economic situation. The pres ident had made no secret of his belief in the improvement of conditions gen erally and that it was dependent to some extent at least. to additional rev enue being provided in some way for the railroads.
 The traffic on which no increase is allowed by the commission, represents about fifty-five per cent of the entire volume of freight handled by the roads. Coal, coke, iron ore, however, are bulky commodities, taking low rates and con sequently the amount of revenue de- rived from them is relatively small.
 In the eastern district ten per cent of the entire volume of freight is an- thracite; thirty-one per cent is bitum- inous coal; five per cent coke, and five per cent ores.
 The coal roads. in the opinion of the commission are already profitable. ) Chairman Harlan, while agreeing that the roads established their need of additional net revenue in even a
 greater amount than that of fifty mil
 lions which it carries, as indicated : would be the result of the five per cent h; fro s1 -nf1-
 from the course now approved by the
 commission of permitting carriers tC
 augment their revenues"
 "The original record contained nC
 evidence tending to prove any of the proposed increased rates as affecting trunk lines or New England territories
 as just, and reasonable" He said, this deficiency in the proof was not sup piled on the further hearing. The rec ord showed the financial condition o1
 the trunk line carriers generally to b' , much more favorable. We pointed out however, in oul original report the sources from Whicl the needed additional net income coulf !. and should be obtained. namely by { | revision of the rates and the abandon ment of the practices found to be un' remunerative or wasteful. The benefi cient effect of intelligent revision O rates is shown by the results obtained i in New England while this proceed ]. ing was pending.
 "The New England carriers sough
 approval in this case to increase onl' in rates the traffic moving betweel
 
 official classification territory; hey dit
 not propose a general five per cent in ' crease in freight rates. In other words
 the New England lines voluntarily pur 1 sued the only rational and reasonabl { course to augment their revenue, thi
 being the course urged upon the Cen
 tra Freight association lines in ou
 original report.
 "Ey following the suggestions mad | in the original report the carriers pOul