The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-08-02
A BRIEF HISTORY
OF THE RATECA
Which Was Decided BY the In
terstate Commerce Commits
sion Saturday

Washington, August 1.-The rail
| roads which applied for the interstate
commerce commissions permission to
| raise their freight rates were the 50
! lines in the territory east OF the Mis-
sissippi and north OF the Ohio and
Potomac rivers. The increases asked
was five per cent. just half of the in :
creas which these same railroads tried
to get approval Of in 1910 but failed.
1t was deemed that public aentimcnt
desired Il prompt decision OF the new
application. and the Interstate COM
| merce commission Immediately insti-
tuted hearings. at which President
Willard of the Baltimore 4 Ohio, Pres
ident Delano Of the Nonon system,
George Stewart Patiersoh,, genera:
consel Of the Pennsylvania. and
other prominent railroad officials gave
testimony. Louis d. BrandeIs. of Bos
| ton. representing and the shippers,
was one of the leading counsel in op-
position.
The contention of the railroad man
ayers was. that in tho last three years
the. railroads had spent $60O,0OO,000 in
new capital, but that In 1918 the earn
ings were $16,000000 less than Tn
1912; that the greatest increases in
railroad expenses had come about by
higher wages, taxes and new invest,
ment in the properties; that condi-
tions, were such that the New York
| Central had since September, 1913,
been forced to lay off $4,000 men; and
it was strongly intimated by some wit
nesees that unless the situation was
relieved the railroads might have to
/ Qnrnnt In hn
only alternative.
The, opposing contentious were III
effect that the railroads were con-
dstantly enjoy ing higher revenue that
| they spent more on improvements last
year tran any other year In 6.istory;
that one terminal alone tuilt at cost
CT s10s 9G0.000 would have built mn
entire railroad from New York go Chi
cago;" and, above all. that the free
services which the railroads. perform
ed for large industrial concerns,
would. il paid for, net the railroads
approximately $30,000.000 q year. Mr..
Rrandcis declared, that "a sum ap-
preaching $100.000,0C0 q year ls easily
within the railroads grasp II >thods
Of conserving revenues which snre: be-
Ing suggested are adofted."3A,sg q :.
The greatest opposition from ship
lpers came from those interested In
coal and petroleum.. and 1t whsS chagg-
ed by independent refinars that the
! increased freight rates would benefit
! the Standard OIL company at ;tho sx-
penseeof the independent concernsa
/ S. Various attempts were rnadeffo rep
resent President Wilson as bling In
favor OF the increase, but he took the
stand that the case was beforeA quasi
1 judicial body, and no word OF the pres
| ident's attitude ever was officially
given. He did, however, expfess the
view that the case should be1 deer
mined without unnecessary decay.
Washington, Aug: "A SUMMARY OF
1.-THE decision prepared by the commits
sion follows: i n Z: s.. &C.
sSas.Thc contention of the railroads
3that tic revenues under the present
! gcala of rates are; inadequate as sus-
4 jta!netf,st tho commission saying that
4 the operating income of the s.,slroads
LIN official classification territofy, TAX
fCt. -; whole. Is smgller than is de-
]Emandcd SIN the interest d. OF both the
ligcnerai pnpilcsand the railroads
lia pro soiE .finanti difficulties OF
f;ha rnilrOaG,. are recognized by I the
i icoInmIssih ihn sas ia problem not only OF
j.the ,aiI roads but OF. the public which
fitSis the duty Of the commission 20
l}holp satlve. On this point tho COM:
/ mission says speaking of the need OF
1.-The carriers for b al itionaT revenues
lfhat Il Is our ID MY and purpose Ito aid
4 as sfnr as we legally may In the sol.i-
tion of tho prob lemF ne 70 the course
carriers mas pursue 10 meet \ tties Btu
4 alton III u ~ 3. q
sThe; eomnisstot oti points out that
1.-The ,oflicial classtfie ion territory :enl-
hbraces three rate teri ritorie iest known as
1.-THE New England t4r ritory,s lying east
Iof fhe Hudson ! river; the trunk line
lltSrrit6fS, lying between the New En-
!, gland territor y and the Hnffllo- Pitts
i hure :iIne, and the Central Freigh as-
lsoci Sion sterrito lyirig tween the
'IBnffatoz Pitt sGlrg III & line and the; Mis-
4 aAissfppt river and that the finanetal
land :fafiic c0ndit tsonas OF tha srailr dS
ioneSating In IT these three rate sferritO-
'tries Sdifief wild y. Tie sea coInmfss sion
tfinds "a hat the rate ID Id the Central
i lEfeiELt nssoSiat Ion ks territory us So -
;Iwhoi iSf are not only lower than the
i rates siH either the. trunk line scr New
i lEngisnd tarr TORY, but that they are
I lower .fhan / iEi any other part of the
irate had beer as hi oh on the Central
Efeig igtt assoclnt ti1n5 ritory hks on
i tho roadS In trunk line territory tho
Il ;IformerS would have enf ned In 1913,
Il ssb 900 600 more tiiAnS they actually
~ f s. 81