Milford chronicle., 1914-12-25
DECISION IN
FAVOR OF ROADS
Freight Rate Increase Granted
with Exceptions.
TWO MEMBERS DISSENT
Interstate Commerce Commission
Grants 5 Per Cent Raise Except on
Coal. Coke and Iron ore.

Grants Per Cent Raise Except on
Coal, Coke and Iron ore.
Washington. Dec. 19.-Increases in
freight rates. approximating five per
cent on ali the railroads between the
Atlantic seaboard and the Mississip-
pi north OF the Potomac and Ohio
rivers, We're granted by the interstate
commerce commission in a divided
opinion, excepting upon certain heavy
commodities which comprise a large
bulk Of the traffic.
The increases viii further apply to
the railroads west OF Buffalo and
Pittsburgh, which were granted par
tial advances in the decision Of Aug.
l, which denied them altogether to
the roads east Of those points.
The railroads are instructed to file
the new schedules within ten days,
and 1t is estimated that the advanced
rates win become effective about ten
days thereafter, unless there is some
technical objection raised. The rates
viii increase the annual income Of
the roads about S30,0OO,OOO
In the decision the carriers, en-
bracing 112 railroad companies, are
permitted to make the applied for ad-
vanees in rates except the raillake-
and-rail, lake-and-rail and rail-lake
traffic; rates on bituminous coal and
coke; rates on anthracite coal and
iron ore, and rates that are held by
unexpired orders of the commission.
After further consideration, the
commission permits advances to be
made also on cement, starch, brick,
tile, clay and plaster. On these COM
mOdities no advances were permitted
by the decision Of Aug. /.
Summarizing the basis Of its decis-
ion, the majority report Of the COM
mission said
For the fiscal year just ended the
net operating revenues as shown by
the carriers are lower than was esti-
mated or anticipated when the origi-
nal report was issued Not since 1908
have the net operating revenues of
the carriers been so low as in the fis-
cal year ending June last.
'ln 1908, moreover, the property in
Yestment account Of the carriers was
S1,S09, 100000 less than in this last
fiscal year, The surplus for 1908, af-
ter deducting S102,OOO,OOO paid in div
idends, was s47,0OO,0OO, whereas for
the last fiscal year the dividends
paid, amounting to S11S,000,000, drew
on the accrued surplus to the extent
Of SS2O0,OOO.
From whatever comparative stand |
point viewed, the net operating reve-
nues Of the last fiscal year must be
regarded as unduly low. Operating I
costs and operating revenues fail to
show that tendency to such cOncomit- |
ant variation as should prevail in the
transportation industry. The property |
investment accounts as now standing /
on the books of the carriers cannot /
be accepted as accurately represent.
ing the fair value of their property 1
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 hve-year period we're added to
their net operating income for the
last fiscal year, the results Of opera
tion would still fall below a fair re-
turn upon the amounts carried upon
the books as investment in property