Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1914-12-24
Application of Eastern Lines
Granted In Part By Today's
Decision of Interstate
Commerce Board.
HEAVY TRAFFIC UNTOUCHED
About $50, 600 More Rev.
enue Allowed European
War, High Interest and
Light Business Cited.

1ieiSul idleS. dppfOXlllatinS b per cent
of all the railroads between the At
lantic seaboard and the Mississippi,
north of the Potomac and Ohio rivers.
were granted today by the Interstate
Commerce commission. in "a divided
opinion excepting upon certain heavy
commodities, which comprise a large
bulk Of the traffic.
The increases will further apply to
the railroads west OF Buffalo and
Pittsburgh, which were granted par
tial advances in the decision of last
August. which denied them altogether
to the roads east of those points. 1t
is estimated that advanced rates will
increase the annual income of the
roads about $50, 900, 900.
The c"'2mission made its decision up
on the showing of the railroads, that
i'll addition to conditions, from which
they previously asked relief, they now
are confronted with an emergency be-
cause of the war in Europe.
Vigorous dissenting opinions We're
filed in the advanced rate case today
by Commissioners Clements n Har-
Ian. Both opposed granting increase
in eastern territory, which We're al
lowed by the commission. That the
allowing of the increases is morally
wrong is the view of Commissioner
Harlan. He believes it would be de-
moralizing to the roads. Commissioner
Clements criticised the increases in
strong terms and holds it wrong n
unjustified.
War Given as Reason.
With Commissioners Harlan and
Clements dissenting, the majority of
the commission declared:
"Whatever the ~nsequen of he
war may prove to be, We must recog-
nize the fact that it exists; the fact
hat it is a calamity without prece-
dent, and the fact that by it the COM
MERGE Of The world has been disar-
ranged and thrown into confusion.
The means of transportation are fun
damental and Indispensable agencies
in our industrial life and for the COM
mon veal should be kept abreast of
public requirements"
Summarizing the basis of its de-
cision the majority report of the COM
mission said:
THE facts disclosed and occurrences
originating subsequent to May 20, 1914,
as presented at the further hearing,
may be summarized under three heads
First, completed returns for the ifs
cal year ending June so, 1914, and re-
turns for succeeding months; sec
ond. the war in Europe, and, third, re-
suits of the original order
When these cases We're originally
submitted. as also when the original
report was prepared, the revenue and
expenditure account for June, 1914, and
the property investment account for
that fiscal year, We're not available, the
war was unforeseen and the results
of our order We're. of course, yet to
come. Collectively, they present a
new situation"
Order BY Commission.
The commission issued this order:
1T is ordered that respondents here
in be, and they are hereby, authorized
to publish and file, by not less than 10
days notice to the Interstate Commerce
commission and to the general public
in the manner prescribed in section
six of act to regulate commerce.
schedules of rates which do not exceed
the limits or transgress the limitations
stated and prescribed in SAID report.
"It is further ordered that the per
mission hereby granted does not waive
any Of the requirements Of the COM
missions published rules relative to the
construction n filing of tariff publ
cations. nor any of the provisions of
the act to regulate as
amended, except as to the notice to be
given
Need of Revenue Shown.
''These figures submitted serve to
emphasize our previous finding of the
need of carriers in official classified
ton territory, taken as a whole, for
increased net venue
For the fiscal year just ended the net
operating as shown by the
carriers are lower than was
or anticipated when the original report
was issued. Not since 1908 nave the
net operating of the carrier
been so low as in the fiscal year ending
June last. In 1908 moreover, the prop
erty investment accoun of the car
riers was S1.309, 900 900 less han in this
fiscal year. The surplus for 1908 after
deducting Sf02, 600, GOO paid in dividends
was SAT, 900 900. whereas, for the last
fiscal year the dividends paid amount
ing to Sis, 900, 900 drew on the accrued
surplus to the extent of SIS, 200 900.
From whatever comparative stand
point viewed, the net operating
revenues fail to show the tendency to
such concomitant variation as should
prevail in the transportation industry
The property investment accounts as
now standing on the books of the car
riers. cannot be accepted as accurately
presenting the fair value of their prop
erty devoted to serving the public.
1.-THE fact remains that If the in
crease in depreciation n bettermen1
accounts in the last fiscal year, over
the average of similar allowances fol
the fve-year period, were added te
their net operating income for the las
hScal year, tHe results oL opeialioi
would still fall below a fair return up
on the amounts carried upon the books
as investment in property.
while there has been recently ar
enlarged expenditure for maintenance
of equipment, it is clear that it has
not been sufficient to restrict to prope1
limits the number Of cars n loco
motives needing repairs. We canno'
view with favor any attempt to Obtain
an increase in net revenue through al
unduly restricted expense on. mainte
nance.
THE testimony shows that, Will:
some maintenance is being deferred
other maintenance deferred during TIN
last fiscal year is now being made.
Three Devonshire (England) brother