The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-11-28
!. c. C. to Refuse Railroads Il
creased Freight Rates.
Earning Statistics Do Not JUS
tify the Demand.
EASTERN ROADS affected
Available Figures Show Them
Most Prosperous Of All.
European War Excuse Will Not
~s Hold Water.

Washington, Nov. 28.-The interstate
commerce commission will fatty refuse
the per cent increase In freight rates
asked by the railroads in eastern ter
ritory. according to Information just
given out. 49,
Owing to the uneQuivocal nature OF
the railroads' application the commits
sion will not he able to grant the con-
cessions sought. Under the law the
commission il required to answer in. the
affirmative or negative.
The commission may, however, indi-
cate to the railroads that If they will
file new and higher tariffs. on spect-
fled commodities. not above a sttpulat-
ed amount. 1t will grant them, although
there exists q considerable difference
of opinion as to the commissions pow
err to do this.
Tho railroads principal argument
the need Of increased rates because OF
the Injury to trade caused by the Euro
pean war-has failed to convince the
commission for the reason that, despite
the war. the net revenue Of the rail-
roads is now higher than for the cor
responding months of last year.
The decision in the case il sure to
come within a few days. 1t probably
sion has not reached an agreement yet
on all the points up for judgment.
Authoritative Information.
The information given here comes
from most authoritative source. 1t
was pointed out as significant that the
railroads asking for the increase in
| rates have experienced considerable
gains in revenue in the past few
months. 1t was stated further that the
shrewdest officials Of the railroads ex-
pect privately that the application will
be turned down.
The latest figures available on the
earnings OF the railroads in the eastern
territory cover the month Of September
| and show that the net operating reve-
enue for the railroads for which sta
| tistics were obtainable, increased from
$34 622. 727 to $37. 1S8,207. or from $6O5 to
! $64S a mile.
For the three months of the current
| fiscal year the net operating revenues
in the eastern district increased from
$104, 978,6 ST to SLOT ga. $50. The net reve-
nue. per mile increased from 81 1888 to
81. S74.
| These increases in net operating rev.
! enue occur conspicuously in the east
ern district and some extent in the
western district. They do not occur in
the southern district on account Of the
paralysis Of the cotton trade. The east
| ern district. however. is the only one
affected by the commissions edict.
Due to Economy.
The notable increases in revenue
| were not obtained by an increase in
business but by the practice of a num-
Der Of economies suggested by the in
! terstate commerce commission in Its
| opinion in July when it granted ad-
vances in rates in central freight
classification territory. but refused
them in territory further east. 1t il
supposed therefore that when business
Is restored to normal activity and the
earnings are larger the net revenue OF
the railroads will be correspondingly
I greater and more satisfying.
| The very nature OF the railroads
application in the case now under
consideration gave them a particularly
hard argument. They did not ask fol
specific increases but requested that
the commission, which had already
refused their petition, should change
its mind completely and give them
the horizontal increase in rates. To
do this certain members Of the com
mission would have to reverse the
stand they took earlier.
The original decision was reached by
a vote of five to two, Commissioners
McChord and Daniels being in favor
Of giving the railroads what they
lasked.
| Assuming that Commissioners Nc
Chord and Daniels stick to the same
opinion, this would require that two
Of the other five change completely
over and side with them. Those who
have followed the case do not believe
this can happen.