Grand Forks daily herald and the evening times., 1914-07-21
THE RAILWAY RATE DECISION.

From advance notices published It
appears that the interstate commerce
commission has decided to give the
applying railroads, If not half a loaf,
at least part Of a loaf in the form of
freight rate increases. The eastern
roads applied for permission to raise
all their rates a fiat 5 per cent, alleg-
ing in support of the demand that the
cost Of labor and the cost of material
and interstate rulings they are obliged
to make concessions and great service
entailing additional cost, so that their
net had fallen off alarming,
and instead of accumulaain ga surplus
they were %scracely, and in some cases
not at all, able to meet operating ex-
penses Because Of this condition, say
the road managers, they are unable
to obtain funds for necessary extern
sions and b~etterments, as borrowers
will not advance money to enterprises
which cannot demonstrate their abil-
ity to repay the loans with interest.
According to advance statements
published the commission has decided
to refuse permission for the five per
cent advance asked for, nor will 1t
grant permission for n flat percen-
tage advance whatever. There is
some measure Of comfort, however,
for the roads, In the specific increases
actually authorized, the sum of which
will amount to some $3.50 O 900.
No increases are to be granted in
commodity rates-that is, rates on
such goods as are usually shipped in
bulk and in car lots. The increases
granted are in class rates, or on those
goods which are shipped in packages
OF various kinds. In addition to these
Increases the commission points out
ways in which the roads can effect
actual cash savings amounting to
$4,000, 900 annually. In this connec-
ton 1t Is pointed out that while the
laws of the country prohibit descrim-
ination as between shippers, whether
by means Of rebates or otherwise,
many of the roads have been granting
determinations to favored shippers,
not through the making of lower fates,
but through the performance of va
rious %gratuttous services. In some
cases exorbitant allowances have been
made for the use Of private factory
lines, switching has been done free
for some people, while others have
been charged for it! collections and
deliveries have been made free in
some cases; n IN a number of Others
expedients have been adopted to favor
certain shippers as against others. BY
the abandonment of these practices
the commission says that the reve-
nues can be increased $4,000, 900,
which, with the SIS, 900, 900 of freight
increases granted, will improve the
condition OF the roads by some s40,-
100000 over what it is now, instead
of the $50,ooo,o 900 which, as was esti-
mated, would be the returns from
the FIVE percent increase asked for.
Whether this will be a reasonably
satisfactory solution Of the problem
Is for the roads and the commission
to fight out. If the figures of the
commission are even approximately
correct the roads can have no COM
plant to make. In substance the
roads are told to go ahead and save
money by disseminating wasteful prac-
ttce instead Of continuing those prac-
tees and collecting the price from the
shipping public. That sounds like
good business.
1t has been charged that the rail
roads have been delaying improve
ments on the plea of poverty, and for
the sake of influencing sentiment in
favor of the granting Of their de-
mand. They have certainly sought to
influence sentiment by calling atten-
ton to their inability to max inn
provements, and it would be only
human nature for them to fortify their
argument to some extent by pinching
IN a little on improvements which thew
could make and which they would
otherwise make. If that is the stu
alton, the clearing of the air by the
rendering of this decision, and the
elimination Of the subject of rate in.
creases from the field Of controversy
should result in activity in the max.
ing of delayed improvements which
they need, and which they are able
to make. They may not be able tc
do all that they desire, but there will
remain no reason for them not to dc
all that they can, and to that extent
the decision 1T would appear should
have a favorable effect on trade.
Only a woman can entertain un-
welcome visitors and make them feel