Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1914-12-25

that transportation is being reduced through
the laying off Of employees and cancella-
ton of train service
ut was urged on behalf of the carriers
and investment bankers that the war in
Europe has created condition which rem
ders the diminution of the carriers net
income menace TO the prosperity Of the
country; that the war has placed an added
strain upon the credit of carriers that
rates Of interest will rise; that large
volume of railroad securities is held abroad
and would be dumped upon the American
markets. which would not be able to absorb
them without great fall in price.
I'VE do not doubt that the financial
problems of the carriers have been made
much more acute by reason Of the war,
and if we are to set rates that will afford
reasonable remuneration. we must give
consideration to the increased hire of CAPT
tai as well as to other increased costs.
THE suggestions made in our original
report of methods whereby to increase net
revenue were not susceptible Of being put
into immediate operation or calculated to
produce immediate financial results The
period which has since elapsed has been
entirely too short for either purpose. Some
testimony was offered on what had been
done or undertaken in line with these sue-
gestions, and estimates were made by
traffic officials as to the annual yield to
be expected. These estimates were not
based upon any accounting computation.
and can afford little guide as to what the
results will prove to be.
THE original report besides approving
of rate increase, suggested 10 sources of
additional revenue.
The present report, recognizing the ex
istence of new situation since July 20,
acquiesces in a territorial extension Of the
relief granted by permitting the carriers to
file tariffs providing, with certain excep-
tons. for horizontal rate increases in Off
cial classification territory.
ut is expected that the constructive
work suggested in the original report for
the purpose of conserving and augmenting
the net revenue Of the carriers generally
will be carried forward without Interrupt
ton" the report concluded.
The commission did not grant increases
on rail-lake-and-rail and lake and-r rates,
it said, because the rail carriers as owners
of the lake lines have already increased
freight rates.
"The prevailing rates on bituminous coal
and coke" the commission said, ARE re-
munerative and the financial condition of
the principal bituminOus coal carriers is in
marked contrast with that of many of the
other carriers
Twice in the not distant past the rates
on bituminous coal have been increased
five cents a ton and would seem now to
be as high as may fairly be allowed" the
commission said.
Increases on anthracite coal and iron
were denied largely because they are be-
fore US for review in other proceedings"
the commission said.
Commissioner Clements, dissenting, said /:
81 can but regard the action now taken
by the commission as out of harmony with
the spirit and purpose of the law and as
taking step that leads away from the
sound principles necessary to conserve the
ends of justice. Carriers have a right to
earn all they can on the business which
they can secure at just and reasonable
rates. The right of the shippers to protec-
ton against the exaction of rates unreal
sonably high for the service performed is
equally sacred"
Declaring the whole case hangs on wheth-
er the rates are lust and reasonable, -
Commissioner Clements added:
las | understand it, justification of rates
permitted by this decision to be increased
rests largely upon the need of greater net
revenue to enable the carriers to afford
adequate service to the public II these
considerations constitute sufficient basis
for wholesale approval of a body of in
creased rates agreed upon by all carriers
in given territory, competing or connect
ing, weak or strong, the same must be
equally true if every road in the country
as well as every rate, were included in a
proceeding before us.
IF the legislative authority of the COM
mission is as broad and unrestricted as
this, then must confess that have gravely
misunderstood the limitations upon our
statutory authority as well as the constitu-
tional power of Congress to delegate its
legislative power"
Chairman Harlan also dissented He
said
THE further hearing of this case added
nothing substantial to the relevant facts
before us when the original report was
handed down. 1t served only to confirm
the soundness of the finding then made
that the railroads in official classification
territory, taken as whole. ought to have
additional net income My own view OF
the record has been and is that the carriers
in that territory, considered collectively
are in need of more additional net income
than the amount, S50000,0O0, which
they estimated the proposed five per cent
increase in rates would yield.
81 can readily agree. therefore, to the
reiteration in the supplemental report Of
the finding of the original report that those
railroads need additional revenues; and
to that extent what is here said may be
regarded as a concurrence.
81 wholly dissent, however. from the
course now approved by the commission
for permitting the carriers to augment their
revenues"
y eU advertisements.
SCHOOL BOARD MEETING.