Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-19
RAILROADS WIN PLEA !
FOR REHEARING IN
FREIGHT RATE CASE
Interstate Commerce Com
mission Fixes October 1o
as Date for Presentation of
New Evidence

WASHINGTON, Sept. 1s.-The inter-
state Commerce Commission today grant
ed the application of Eastern railroad.
for reopening OF the five per cent
freight rate increase case
Hearings, to begin October 10, the com.
mission said, would be confined exclusively
to information and evidence arising aino.
the recent decision granting only partja,
increases.
Meanwhile the rate orders of the recent
decision will remain in effect.
The favorable action of the commission
today, generally predicted, followed the
appeal of railroad presidents to President
Wilson to present to the country the rail-
roads financial situation because of tbs
war.
Reopening of the case affects 1873 ra,I-
roads IN all States east of Illinois ana
generally north of the Ohio river
That the hearings will be extremely
brief and that decision will be forth
coming by November is generally be-
lieved here.
The text of the order of the commission
follows:
Upon consideration of a petition nv
respondents for modification of order.
heretofore entered and good cause ap-
rearing; therefore
1T Is ordered that further hearing in
said cases be, and is hereby, granted.
said hearing to be limited to presenta-
tton of facts disclosed and occurrences
originating subsequently to the date
upon which the records previously made
In these cases were closed.
1T is further ordered that pending
such hearing and further order of the
commission In the cases, the commis-
sion's report, findings and orders here
tofore entered therein shall remain in
full force and effect.
1t is further ordered that this pro-
ceeding be assigned for hearing at the
office of the commission in Washington
on the 18th day of October, 1914, at 10
o'clock a. m.
1t is further order that a copy of this
order be served upon each Of the partie,
to the cases"
In October 1918, the Eastern roads flied
tariffs, at an expense of about 81, ,soO. 900.
providing increases in freight rates esti-
mated to average per cent, which COM
puted on the gross revenues of the car
riers involved of $1,000 100000 year.
would mean additional net revenue to
them of about s5OOOO.OOO Under date of
July % last, the decision refused anv in
crease in rates, except on a restricted
tonnage on roads in the Central Freight
Territory and then only in the rates an
applying within that territory.
Since the closing of the former case
another fiscal year has been completed
in which gross revenues declined s4-
100 0O0. compared with results In the wear
ended June 80. 1913, and net operating
revenue in the aggregate for the roads
concerned dropped $7SOOO.OOO.
Hence on the volume of business in
ne 1914 year the yield of an average
per cent. advance would be S2235,OOO
ess than the $5OOOO.OOO originally pro-
posed. and Furthermore the advance in
expenses and taxes since tho
ormer petition coupled with the loss in
ross. would swallow up an average
'er cent. advance at this time and still
cave net operating income over S25,-
10000 smaller than in the 1918 fiscal
year.
In July of this year gross revenues con-
inued their downward tendency, but the
rogress of cutting operating expenses
the bone had begun to show its effects .
nd the losses in net revenue were mini
lZed. Then came the unsettlement to
raftic and especially to credit as a result
the European war. Gross revenues In
'ugust declined more sharply than in
uly, and the effect on net is more damag- -
lg, according to early indications. Even &,
lore important Is the dislocation OF
redit at IA time when railroad maturities
re heavy, amounting to a half billion
ollars in the coming year. and when the
iilroads are in the weakened earnings
Ortion.
Such are the changed circumstances
htch have manifested themselves since
ne closing of the advance rate case, the
seision Of which was handed down ON
lly 20.
NJ lnr nrnI