The Detroit times., 1914-01-27
commission VIII MOI Grant
Rate Increase Unless Satisfied
Roads Are Making Use OF
Every Source of Income
INDIRECT REBATING
AMOUNTS TO MILLIONS
Revenues Would BE Greatly I'm
proved Were All Legitimate
Charges Collected

WASHINGTON, Jan. 27.-The in.
terstaLe commerce commission served
notice on railroads today that before
they will consider granting increased
freight rates, the carriers must show
that they are forcing reasonable
contribution" to their revenues Tor
every service they perform. and that,
even with this full exaction, that
their revenues are shrinking.
The warning was Issued in a de-
cision declaring unwarranted tne
present rules in vogue on eastern
roads in connection with industrial
lines short railroads or traces
owned BY various industries.
The commission was led TO It's sig
nifcant comment on the freight rates
question by a discussion Of the free
service granted over industrial lines
service which the report declared
would add millions monthly TO the
carriers income II charged for.
No substantial part OF the well-in-
formed and rejecting public" the
commission declared would deny 10
the owners OF the railroads
reasonable return on their invest
ments; nevertheless. before they may
fairly ask the general public TO share
further in carrying their burdens, II
is manifest that the railroads must
themselves properly conserve their
sources OF revenue by making every
service rendered by them contribute
reasonably to their earnings.
This having been done, the com.
mission upon an adequate showing OF
the need OF additional revenues, VIII
not shrink from the responsibility OF
sanctioning such measures, including
I even general advance in rates. as
may be required TO bring reasonable
prosperity to railroads, SO far as this
may be accomplished under rates and
charges that are reasonably just alike
10 shippers and 70 the carriers Aside
from the right OF the owners OF prop
cry so devoted TO the use OF the pub.
lie 70 receive from the public rea-
sonable return on their investments,
( il Is OF profound Importance TO the
/ public in its own interest TO accord
! fair anu equal treatment 70 the own
ers OF railroads. for upon no other
basis may we continue to look 10 pri
yate capital for the further develop.
ment and extension OF our railroad
/ facilities. The general public inter
est is therefore. advanced In a very
! direct way by tie reasonable success
OF railroad investments under rate
schedules that reasonably respect the
rights of shippers.
But If further burdens through an
Increased scale OF rates may Justly
be imposed on the general public, all
( must agree that unlawful concessions,
rebates, and preferences in the inter.
est OF q small proportion OF the ship.
I ping public ought TO be eliminated
I from the practices OF carriers"
The decision in which the commits
sion limited its opinion on the freight
I rate advances was considered one OF
I The most important IN recent years
/ lt laid down the rule that service By
carriers beyond a reasonably convent.
en' point OF Interchange over indus
trial short lines. was entirely a ship.
pers service. 10 be charged for.
1t condemned tue present allowances
4 by railroads for such short tracks, as
granting the industry owning thc
short lines an unfair advantage owe.
competitors not e situated. The com
mission fatty held that delivery of
car by line carrier upon the inter
I change track constituted a delivery
10 the industry Itself
: Among the industry lines Affected
( by todays decisions are.
Lines owned by the American Stee
a Wire Co. NCwburgh, y y. Nc
| Keespoyt pa Connecting Railway:
I st. Clair Terminal Co. Clarion. Pa;
Lines owned by TIE United states Cor
poration az Gary Ind and a number
I Of af fhnFa