The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-07-21
RAILROADS TO GIT PART.

Raj ROADS TO Gil Pt8Rle
Preliminary announcements Of the forthcoming
decision Of the interstate eonanerce commission
on the question o; the increased freight rates
asked for by a number NJ Northern railroads
seem to indicate tsat the roads aaHe both lost
aud won They have lost p that they tailed
4, &c, ail that they asked for IN the way IN
which they asked for it. They have woR in
TIA. they have gained recognition of the jus
tice Of their complaint BY the commission. and
In tia, the decision makes il possible for them
r. Increase their revenues
The railroads wing within the territory be-
tween the Mississippi and the Atlantic ocean. and
north Of the Ohio. went before the commission
Gud asked TIA; they he allowed 10 increase their
rates 1--WE per cent On all freight business This
plea was based on the contention that the roads
we're not earning as much the were entitled
to. In fact not enough 10 make Their business pay
j, was heid that tbis depression IN railroad
business was reflected ia general business depres-
sion and IN fact WIS the cause Of IL
The decision Of the commission recognizes
tie claim OF the railroads that they are not earn
Ing enough IT does not allow the claim that
they be allow ed To raise all rates five per cent
The roads hgured that The five per cent raise
would increase their earnings slo9ooae99 an
nualy The commission allows increases that
are expected TO give return Of s15.ooo.oe0 an
nnally, and by certain economies which it de-
clares the roads mast make figures thai they
win gain All additional s26.o0o,00o, Or a total
Of $4,000 900 additional revenue annually in
place d tie 500. COCOON asked for
Il thus appears that tine decision recognizes
THAT the roads should have additional revenua.
but the economies upon which it insists show
that 1t considers the roads themselves ia large
measure responsible fer their present financial
predicanleut- The decision. as outlined, states
that certain practices OF the roads must be g p
ped These practices the performing of Ger
tain services for large shippers without charge,
and by making the shippers pay for these hither'
to gratuitous services the commission states that
q saving Of So 900 00o may be easily made, This
part of the opinion Is IN line with the conten-
ten Of Mr. Louis Brandeis that large part Of
the losses OF railroads caused by inefficient
man g.nent However, the practices which the
conagnissiou holds mast be stopped not 50
nslch the results OF inefeiency they are The
relics Of days when competitive rate wars forced
the roads to make concessions to large shippers.
Tnese practices are enumerated follows:
Iighterase and foatage ri New York, lighterage
and terminal charges at Chicago. loading and
un.ooding carload lots free collection and de-
iveries free wharfase and dockage. free re-
consignment ~ freight, Tree passes and ranspor-
tat1on ii private cars free switching OF cars;
tran car service known as spotting
From the nature of these services IT can be
seen that they are the outgrowth hot much
o. inef5ciency as Of the necessity forced the
roads by competition, and f IS probable that
the roads themselves viii welcome chance to
rid themselves Of these services
Then as to the increase in rates allowed by
TIE commission it is significant to note that
they arr Of such nature as not to require a
single Wholesaler or retailer TO raise his prices.
nhe roads asked fer blanket raise in all prices:
rhat they got was q raise In certain special rates,
called class rates which ara those on mauufac-
tured goods thar are handled In bundles boxes
and packages and that require much trouble and
\ expense in handling BY these increases the
commission feels has granted large enough
part Of the roads demands for Increased rates.
snd by the economies suggested thinks enough
has been given in tAe az Of Increased revenue.