The Washington herald., 1914-12-19

tempt Is made to estimate the decline in
the rate Of return. The property invest
ment accounts as now standing on the
books OF the carriers can not be accepted
as accurately representing the fair value
Of their property devoted to serving the
public.
Results Would BE Too small.
THE fact nevertheless remains that il
the increase in depreciation and better
ment accounts in the last fiscal year over
the average OF similar allowances for the
five-year period were added to their net
operating income for the last fiscal year
the results of operation would still fall
below fair return upon the amounts
carried upon the books as investment in
property
The carriers in the past have not
known how large an expenditure to figure
upon for the maintenance OF the newest
type Of steel freight cars, and appear now
to have discovered that such expenditure
must be greater than was anticipated.
I'VE cannot view with favor any at
tempt to obtain an increase in net reve-
nue. through restricted expenditures upOn
maintenance. We cannot say on this rec
ord that such charges as at present re-
turned by the carriers are excessive.
viewed either from the standpoint Of
proper accounting or OF safety of opera
ton.
War Causes Demand on Funds.
THE conflict in Europe will doubtless
create an unusual demand upon the
worlds loan fund OF free capital. and
may be expected to check the flow of
foreign investment funds to American
railroads. II is computed that in the
years 1915, 1916, and 1917 the carriers in
official classification territory must ar
range for the payment or refundinqg OF
securities aggregating over SJOO, ,OOO, 900.
True, the representations Of the carriers
in the 1910 cases, that without the in
creases then sought their credit must
totally vanish. proved strangely at vari-
ance with their subsequent experience in
the borrowing of many hundreds OF mil
lions. But We do not doubt that the
financial problems of the carriers have
been made much more acute by reason
OF the war. and il We are to set rates
that will afford reasonable remuneration
to these carriers, We must give cOnsid-
Grafton to the increased hire OF capital
as we'll as to other increased costs.
while We differ as to the relative i'm
poTtance to be attached to She various
presented, We agree in the
conclusion that, by virtue OF the condi-
tions obtaining at present. it rs neces-
saTy that the carriers GevenIes be sup
plemented b. increases throughout off,
cial classification territory. The means
OF transportation are fundamental and
agencies in our Industrial
life and for the common veal should be
kept abreast OF public requirements
AcquIesces in Extension.
THE original report. besides approving
=. ~. II AF--k.w
citation territory, suggested ten sources
Of additional revenue for all carriers
throughout Official classification territory;
the present report, recognising the exist
ence OF a new situation since July q,
acQulesoes In q territorial extension OF
the relief granted to the Central Freight
lines by permitting the car
riers to file tariffs providing, with GER
tain exceptions specified herein, for hori-
zontal rate increases in official classiica-
ton territory. II is expected that the
work suggested in the orig
nal report for the purpose Of conserving
and augmentiug the net revenues Of the
carriers generally will be carried forward |
without interruption.
Carriers will be required to keep an !
account OF the additions to their revenues
rom increases in rates subsequent to
July 90, 1914, and from new charges, and !
a report separately thereon to the COM
mission at the end of twelve and twenty |
our months, respectively.
Rate on Coal Held Down.
For various reasons We shall excert !
rom the proposed increase the follow !
ng rates:
Il. Rail-lake-and-rail, lake-and-rail, and |
rates. 1t is shown on the |
'ecord that since the rail carriers ac- |
Iuired ownershiD and contrOl of the IoLa |
ines successive increases have been made |
he differences between them and the all |
all rates.
80. Rates on bituminous coal and coke |
Not long since these rates were investi-
sated and maximum rates were prescrib- |
ID by the commission. The prevailing
ates are remunerative.
''3. Rates on anthracite coal and iron |
re, largely because they are before us !
or review in other proceedings.
a. Rates held by uneXpired orders Of |
he commission.
Subject to the maintenance Of the es-
ablished Atlantic port differentials, rates
o and from New York may be increased |
lot to exceed per cent. and rates 10 |
nd from Portland, Boston, Philadel-
hla, and Baltimore may be increased to |
he extent necessary to maintain said
In some instances, and in part because
{ the pendency OF this proceeding, we
ave recently suspended proposed IN
reased rates in this territory. Carriers
nay, II they so elect. now cancel such
aritfs so suspended and file in lieu there
4 tariffs which conform to the IimIta- /
ions above specified. II that is done
uch suspensions will be vacated"