Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-03
COMMERCE COMMISSION ORDERS
ADVANCE IN RATES IN SOME
TERRITORY.
MANAGERS CRY OF ALARM
WITHOUT FOUNDATION
Reorganization Of Business System on
Some Lines Declared to Be Requisite
For Larger Net Revenues-No Ad-
vance on Coal Granted-MinorityR Re.
port Filed.

Washington, Aug. 3-In divided
opinion the interstate commerce COM
mission granted some OF the per cent
freight rate increases asked for by the
eastern railroads and denied others.
Increases VIII apply in the territory
north Of the Ohio and Potomac rivers
and from a vertical line drawn thru
Buffalo and Pittsburg, west as far as
the Mississippi river. All class rates
and many commodity rates are in
creased per cent in that section. No
advances whatever were permitted east
from Buffalo and Pittsburgh TO the
Atlantic seaboard. That excludes from
the area from which the railroads will
receive benefits the greatest traffic
producing centers of the country.
Minority Report Filed.
Commissioners Daniels and Nc
Chord dissented from the majority
opinion. Mr. Daniels held the per
cent increase should be general, that
the railroads We're entitled 10 meet
the high cost of living. Mr. McChord
held that the reasons which the ma
jority held 10 warrant an increase
west of Pittsbu-g applied equally 10
the territory east
The majority, headed by Chairman
Harlan held as to rates east Of Pitts
burgh that they were the lowest in
the country. While it was held tha,
the income of the eastern railroads
was smaller than demanded in pub
tic interest no showing had been made
warrant;ng a genera, increase. The
real relief. the commission held. foI
the New England roads and those In
Central Freight Association territory
was financial reorganization upon a
sound basis
Free Service Criticised.
It was held that rather than rails
ing freight rates, the railroads should
discontinue costly free service TO ship
pers, develop efficiency Of personnel
and equipment, stop giving free passes
and possibly increase their passenger
fares 10 a pace with the higher degree
Of service the public demands.
The crisis which railroad managers
protested was confronting them was
pronounced TO have little foundation.
The commission denounced what il
characterized as a propaganda TO in
fuence it's decision and added thai
there was no doubt il had seriously ag-
erayated the present commercial de-
preston.
Such advances as are allowed are
expected to increase the income OF
the railroad about Is per cent. Such
principal roads as the New York Cen
trail. PENNSYLVANIA. Erie and Baltimore
Ohio will benefit by the advance
TO the extent that they have lines
running from the east over in the ter
ritory in which the advances apply
No Raise on Coal.
Coai which alone comprises mora
than half the total traffic Of the rail-
roads will have no advance. Neither
viii coke, brick. tile. clay. cement
starch, iron ore and plaster. Neither
viii there be any increase on lake and
rail rates.
The contention of the railroads that
their revenues under the present scale
Of rates are inadequate is sustained
the commission saving that the oper'
a.ing income Of the railroads in oficia
classification territory taken as whole
is smaller than is demanded IN 'ne
interest OF both the general public
and the railroads.
THE present financial difficulties OF
the railroads are recognized ny the
commission as problem not only oil
the railroads, but OF the public ~nich
II Ia the duty of the commission TO help
10 solve. On this point the commission
saws speaking Of the need of the car
riers for additional revenues, that II is
our duty and purpose to ed as lar as
we legally may. in the solution Oh the
problem as TO the course curriers' may
pursue 10 meet the situation
Three Rate Territories.
The commission points out that the
official classification territory en-
braces three rate territories, known as
the New England territory, lying east
of the Hudson river. the trunk line
territory. lying between the New Eng
land territory and the Bufalo-Pitts-
ourgh line, and the Central Freight AS
ISOLATION territory lying between the
Buffalo Pittsburgh line and the MIS-
sissippi river, and that the financial
and traffic conditions of the railroads
! operating in these three rates terri
tories differ widely. The commission
| finds that the rates in the central ter
| ritory as whole are not only lower
| than the rates in either trunk line OF
| New England territory, but that they
| are lower than the rates in any other
part of the United States. II the aver
| age freight rate had been as high or
the Central Freight Association lines
as on the roads in trunk line territory
the former would have earned in 191:
$50, 000, 900 more than they actually did
and that the twenty-eight representa-.
tive roads in Central Freight Associa-
ton territory which are nest in need
would have earned s2s,ooo,ooo more.
Trunk Line Receipts.
The three great trunk lines have
each a large mileage III Contra
freight Association territory SO tina
their revenues will be augmented b.
Irate increases in that territory. Thus
Of the New York Central system, IL.
$50 miles OF line, 1898 or more thar
two thirds are in Central Freight As
ISOLATION territory. Nearly one-half o
the mileage of the Pennsylvania sys.
tenn is also in that territory and NOR
than one-half Of the Baltimore & Ohio
the Erie, the Chesapeake & Ohio ant
the Norfolk & Western also have i'm
portant mileage IN Central Freight AS
ISOLATION territory.
The system in trunk line territor.
which have no mileage If Contra
Freight Association territory are ii
large part roads with large anthracite