Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1914-08-07
Railroads Fail To Get An All
Around Increase.

After devoting more than year to an
investigation into the revenue needs Of
the railroads in the Eastern classification
territory the Interstate Commerce Com
mission last Saturday afternoon formally
announced its decision in the per cent.
rate case
No arbitrary sum is fixed by the COM
mission which the railroads may receive
from the advance in rates, but this will
range from $l5,000000 to $25, 100000,
according to the volume of traffic handled
under the new scale. From economies
the carriers may have the benefit of $25,-
100000 or even more.
1t is pointed out by the commission that
low freight rates are not responsible for
the financial condition of many of the
lines involved in the present case. Mis-
management is the cause of many of the
burdens under which various roads now
operate.
The commission severely criticzes the
propaganda" carried on either by the
railroads or their sympathizers in an effort
to influence the body through the news
papers and otherwise in favor of granting
the fiat per cent advance asked for in
the original petition, and added that there
was no doubt it had seriously aggravated
the present commercial depression.
In effect, the railroads both win and lose
by the decision Of the commission The
general advance asked for in the whole of
the official classification territory, that is.
territory extending from the Mississippi
river eastward to the Atlantic and from
the Ohio and Potomac rivers northward to
the Canadian line. is not allowed. To that
extent the carriers lose.
A per cent. increase, however, in that
section embracing Illinois. Indiana Ohio,
Michigan and part Of Pennsylvania, New
York and West Virginia, is allowed on
purely class shipments and upon some Of
the commodities. To that extent the car
riers win.
New England is not favored, because, as
the commissioners point out, a readjust-
ment of the rates in that section is being
worked out by the railroads and the State
Railroad Commissions in cooperation.
No increases are allowed, except in a
minor instance or two. in the grand trunk
territory. which includes Maryland, New
Jersey, Delaware and the greater part OF
Pennsylvania and New York, for the rea.
son, the commissioners say. that the rail
roads in that section are already prosperous
Those lines however, that operate pri
marily in the grand trunk territory, bu
which extend into the central freight area
will be benefited by the increases whicl
are granted. Prominent in this group OF
roads is the Baltimore and Ohio, the Penn
sylvania the New York Central and tn
Erie.
In summary of the decision prepare
by the commission it is declared that "th
present financial difficulties of the railroad
are recognized by the commission, as
problem not only of the railroads. but q
the public. which ii is the duty of the CON
mission to help to solve On this point th
commission says. speaking of the need O
carriers for additional revenues, that it
our duty and purpose to aid. as far as "
legally may, in the solution of the probleI
as to the course carriers may pursue I
meet the situation.
THE commission points out that the o
fetal classification territory embraces thre
rate territories, known as the New Eni
land territory, lying east Of the Hudsc
river, the trunk line territory, lying b,
tween the New England territory and tn
Buffalo, ittsburg line. and the Cent?
Freight Association territory, lying b,
tween the Buffalo, ittsbure line and Il
Mississippi river, and that the hnanci
and traffic conditions Of the railroads OF
Grating in these three rate territories diff
widely. The commission finds that Il
rates in Central Freight Association teri
tory, as whole, are not only lower tha
the rates in either trunk line or New En-
land territory. but that they are lower tina
the rates in any other part Of the Unite
States. II the average freight rate he
been as high on the Central Freight ASS