New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-12-19
RAILROAD HEADS
ON THE DECISION
Thankful for What They
Get, but Are Not
Enthusiastic.

The majority Of the heads OF the
railroads affected by the interstate
commerce decision granting an in
crease Of per cent in freight rates
declined yesterday to comment on the
decision, on the plea that they had not
had time to digest it. Those who had
comment to make were not overenthu-
siastic
"As nearly as I can ascertain from
the preliminary report which | have
received" said A. H. Smith, president
Of the New York Central lines, "the
commission has granted an increase on
perhaps a little more than half Of the
tonnage, but to the extent that the in
crease has been granted it will help
the railroad situation. II should also
promote general public confidence for
the future. The commission has rec
ognized not only the need of the rail
roads but the effect upon the railroads
of the peculiar conditions generally at
the present time. The increase now
granted will not solve the trsnsporta-
tion problems of the day, but in view
Of all the circumstances the commits
sion has evidently done what we
thought wise here. We are thankful
for the help given and will endeavor
TO make the best possible use of it,"
Howard Elliott, president of the
New York, New Haven & Hartford
Railroad, in stating his views on the
decision said:
81 have not seen the full text Of the
decision, but | understand an advance
of per cent has been granted upon
certain rates and upon certain COM
moditles. The 5 per cent does not ap-
ply on all of the freight business OF
the company, and this should be clear
~ understood in considering the effect
Of the decision.
"The freight earnings of the com
pany for the year ended June 30, 1914,
were S32, ,476, ,639 25; per cent of that
sum would be 81 l,623,83l 90. Careful
calculations, however, indicate that the
increase in the gross freight earnings
of the New Haven road because of the
decision of the commerce commission
will be less than S250,000 a year and
probably not much in excess of $780,
900 a year on the present volume OF
business. So far this fiscal year the
freight earnings of the company have
decreased S1,399,0 900.
I'VE are gratifed TO have the COM
mission recognize the necessity Of in
creasng freight rates and we are glad
10 have even this modest increase. The
aggregate sum, however, is not very
large compared with the total decrease
in freight earnings already sustained
since July l."
L. f. Loree, president of the Della
ware e. Hudson, said:
81 cannot work up any enthusiasm
over the decision, because il was what
the commission ought TO have done. A
person who has done something he
ought 10 have done should not be
praised. OF course, have not had time
TO read the entire decision, but ! have
received the early reports indicating
that the railroads will get large part
of what they asked for.
at will relieve the distress OF the
railroads, as it will fill hole in their
earnings. But l do not believe II will
give them any additional purchasing
power"
Mr.. Loree was asked If he did not
think industrial companies would reap
material benefit from the increase, but
answered in the negative. He thought
the increase in rates would help the
credit of the railroads, but did not
believe il would cause any marked in
crease in security issues, as people had
no money to invest in securities at
this time. Continuing, he said:
~ consider the decision a distinct
help 10 the situation. II cannot help
railroads IN financing, however, until
the security markets improve, and that
depends entirely on business and the
war situation"
President J. II. Eustis or the Boston
& Maine Railroad said Of the decision;
Until the full text of the decree is
received it will be impossible to know
20 what extent il will affect the rev
enue Of the Boston e. Maine Railroad.
However, rough estimate, made some
time since by officers OF the road, II di-
Gated that il the full increase were
granted il would not increase the rev
enue Of the company more than $780,
900, which is less than per cent Of
1 its total freight earnings"
Newman Erb, president Of the Min
neapolis & St. Louis Railroad Company
and Of the Ann Arbor Railroad. said:
al am inclined 70 regard the findings
favorably on the whole, and believe
that they will be so received generally.