Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-11
Railroad Revenues and ID
the Public Interest

reimbursement of rates in Central
Freight Association territory Is what u
needed was not disputed. The class-
! rate structure is honey-combed with
Inconsistencies. That scale OF rates 10
said to be largely controlled by an
Ohio statute, which holds the first class
rate down to a level of IN cents per
100 pounds for the first thirty miles
As result, the second and third
classes are upon the same level as the
first class for nearly that distance: and
the resulting class rate structure Is
not logical nor are the rates remun-
erative. The scale is based on the
rate from Pittsburgh to Chicago. which
Is so per cent of the New York to Chi
cago scale; and this rate amounting to
45 cents on first class extends for
distance of AIS miles. II is graded Gown
from that figure to ~ cents. the maxi
mum applied for the thirty mile dis
lance in Ohio. The basing rate from
Pittsburgh to Chicago is 60 per cent Of
the New York to Chicago rate. The
rate from Pittsburgh to St. Louis is
81 per cent of the New York to st.
Louis rate, and the rate tc the upper
Mississippi river crossings in Iowa is
made generally on a scale 2 cents
higher than to St. Louis. Such incon-
siStencies existing as to the terminals
are emphasized by an analysis of
rates to and from points within Central
Freight Association territory. Weak
lines lacking terminals have attempted
to induce traffic 20 their rails from
time 10 time by reducing rate here
or extending a special concession
there. so that the whole rate structure
would seem TO require revision.
The decision further records that
the officials of the c. F. a. roads had
joined in the case thru pressure from
the trunk line people. and that they
declared that '4n addition tn the rates
being extremely low they are unscien-
tic and illogical" This view was
also expressed hy large shippers and
Chicago rate expert testified that the
scale is relic OF barharism." It is
therefore no wonder that something
was done for s. F. a. territory.
But. on the record. what was done
10 approve readjus,nen,; and in no
sense, apparently was this a recog-
milton of the right OF the railroads TO
demand higher rates for The se~era,
Il does NOT seem 70 have been con-
s!dered. in connection with the raises
approved that the roads need more
money 50 that BONDS viii sci, reader
or dividends or stocks be made more
certain.
The commission wen. on record 4.
Is worth while noticing. as recognizing
that Chairman Thorne Joined in the
criticism or the rates which are now 10
be readjus.ed, saving:
Counsel for western state railroad
commissions, by which protests were
made against an increase In rates in
official classihca-.on territory, particu-
larry criticized TIRE basis now IN effect
in central freigh, association territory
because of the great advantage which
II IS said TO give to Chice 60 over points
/ on ana west Of the Mississippi river"
In view Of the mplinentary ref
ereace made 10 the rent dtferentisl
against upper Mississippi points IN
Iowa, ~ The commission, and the con-
sequert inference thai in the readjust-
rrent This 1,us- be cut out along with
otter Inconsistencies Il is hardly TO be
wondered al that the Chicago papers
and those they represent. have not been
anduly exlberant IT approving what
the commission cid. II would appear
az if. strange az this may seem that
in proceeding where Iowa came in
as a party in Incidental interest the
chiefest value Of the decision may come
/ 70 Iowa in a final victory for the clint
nation Of the discrimination which pro-
ceeds OFT o. &C a territory against
Iowa industry and Iowa prosperity. II
may De fairly inferred tina, this de-
o5c niI he mil Ia. re-
Z Gently aiken on the whole rate siIua-
ton as affecting industry here
We find SAYS the commission re-
ferring 10 the other two territories in
+. volved. that ihe financial condition OF
Z the -runk-li.e carriers does not war
rant q general increase Of freight rates
and shall also show that the needs o.
the New England lines are being cared
for locally The carriers failed TO prove
either that the existing rates in trunk
line OF New England territories are
100 low or that the increased rates
proposed for those territories would be
Just and reasonable rates. Nor have
they proved that the existing inter
ritorial rates in official classification
territory are too low or that the pro-
posed increases in those rates void bf
just and reasonable. The carriers vii
be required therefore TO cancel all tn:
tariffs in which these rates are pro-
posed"
: So much for the matter Of the con.
: illusions and orders as affecting thu
proposed horizontal 5 per cent increase
in rates all the way from the Mississip
pi TO the Kennebec. That part of thu
decision touching other methods of in
cressing revenue, while very interesting
: and deserving of special analysis. il
? only incidental to the rate raise. Tina
part dealing with the purely poiitica
: phases Of the case is another matter
I But the commission, in leading up t
:, the conclusions as to rates discussed
above. presented very valuable his
torical and statistical analysis Of tn
entire railroad situation. There is mucl
in it that is new regarding the rat
basis. This is the part that IL Of perna
nent value.
1t will be recalled that when tn
western commissions got into the cas-
. and induced Chairman Thorne to rep