Daily capital journal. (Salem, Oregon) 1903-1919, 1914-12-18
( =. 4 4 = x 4 y ~ X = x 4

Washington Dec. lS.-Increases in
rates on cement, starch, brick, tile clay
and plaster denied in the former APP
plieation, was granted today under GER
tain limitations.
Joint rates., continued the report
"between official classification terri.
tory 1.-THE east) and southeastern terri.
tory, the southwest and points east Of
the Missouri river may be increased to
an amount not exceeding five per cent
of the division of the rate accruing to
the carriers in the official classification
territory. If the increase involves n
change in relationship under the long
and short haul rule between inter
mediate points and more distant points
outside of official classification terri
tory, relief from the fourth section of
the act must first be secured by reg
ular application.
"The European conflict doubtless
win create an unusual demand on the
wrold s loan fund of free capital and
may be expected to check the flow of
foreign investment funds to American
railroads Whatever consequences Of the
W III may plONN " bN, Nt Hlh0l lNNbkilAN
the fact that it exists the fact that it
is calamity without precedent and
the fact that, by it, the commerce of
the world has been disarranged and
thrown into confusion
"While we differ continued the re-
port "regarding the relative i'm
portNnce that may be attached to the
various considerations presented, we
agree in conclusion by virtue Of condi-
tions obtaining At present that it is
necessary that the carriers revenues
be supplemented by increases through.
out official classification territory"
The report says the net operating
revenues Of the roads are the lowest
since 1908. 1t reviews the testimony
at length and adds;
owe do not doubt that the financial
problems Of the carriers are made more
acute by reason Of the war, and If we
are to set ratec affording reasonable
remuneration we must give consider.
alton 10 the increased hire Of capital
as well as other increased costs,
The original report, besides approv'
ing rate increases, suggested ten sources
Of additional revenue. The present re-
port recognizes the existence Of a new
situation since July 30. Today's re-
port said the commission denied In
crense In raillake and lake.rail rates
because the rail carriers as owners of
lake lines already have increased
rates. The report said that twice
recently the rates on bitumin0us coal
had been increased five cents per ton,
and ait would seem now to be as high
as may fairly be allowed, "
Tho commission Is report scored the
rnlroads for misrepresenting conditions
previous to application for increased
rates, The report said the representa-
tons Of the carriers in 1910 that, with
out increases, their credit must vanlsl,
"prNed strangely at variance with
their subsequence experience in Dor
rowing hundreds Of millions Of dol
/ lars"
Commission Harlan wrote the dccis'
ion. Commissioner Clements, the only
/ dissenting member voiced the view oi
Louis II. Brnndeis that the advance was
simply ga war tax for the exclusive
benefit of the railroads, Clements
said he doubted the legality of the In
crca9c nddhgi
tThc carriers now nre siirennR
more from the want Of freight TO carry
than for higher rates. Il would moi
scum to be out Of line with ordinary
prudence and conservatism, prevailing
In other lines Of industry, II the car
riers had undertaken to meet this APP
porcntly temporary situation as have
Others