Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-08-03
NOT INCLUDED
IN RATE INCREASE
Decision in Freight Case Adds
From Fifteen to Twenty Mil
lions to Railroad Revenues
,Steeial to The Telegraph

Washington, d. c., Aug. 3. The
long awaited decision in the advance
rate case by the Interstate Commerce
Commission gives the railroads in the
territory west of Pittsburgh and east
of the Mississippi river an increase
which, it is estimated, will yield be-
tween SIS, 000, 900 inc 100000 ad-
dtional revenue each year.. No in
creases are granted to the Eastern
roads, including those in New England,
but several of the big Eastern systems
will benefit by their ownership of lines
in the Central Association territory.
For all of the railroads involved the
commission points the way to econo-
mics and the stoppage of leaks which,
in the end, it believes, will yield the
railroads much more Ia the $780,
600, 200 additional revenue they sought
to raise through the general increase
of 3 per cent. in freight rates.
The commission granted an increase
of 3 percent. to the section east of the
Mississippi liver n north of the
Ohio river, west of a line drawn be-
tween Buffalo and Pittsburgh.
The commission refused to grant a
like increase east of the Buffalo
Pittsburgh line; refused increase on
la~ke-and-rail rates; advanced all class
rates 5 per cent. within the central
freight association territory, and grant
ed a like advance on all commodity
i dues tACtDlC OdIt Noht, pIiChy Illtt NlaSb
starch, cement, iron ore and plaster.
The commissions decision was based
upon h ground that under the rates
hitherto prevailing the service could
not be commensurate with the public
demands. The new rates will increase
the income of the affected railroads
about II per cent.
In addition to it's decision on the
rate increase, the commission suggests
hat the railroads give less free SER
vice to shippers: hat they abolish
the free transportation of passengers
and special cars; that they examine
carefully, before renewal, those con-
tracts with sleeping car companies
which are about to expire; hat they
investigate whether the cost of prop
erty needed to be acquired for h ben
! eficial operation of their business is
not increased because directors in
their companies are also interested in
the holding of these properties.
Commissioners McChord and Dan
iels dissented from the majority de-
cision of the commission, and de-
clared themselves in favor of a general
D per cent. increase east as we'll as
west of the Observation-Disclosures lines.
Look Fol Further Relief
The fact is that the commission
plainly intimates to the roads west of
Pittsburgh that they are entitled to
more even than the full 5 per cent,
but the commissions hands were tied
under the present proceedings in go
ing beyond the relief asked for. 1t is
this feature of the report which leads
many railroadmen to believe that
eventually they will get more substan-
tial relief than was originally asked
The increases granted for Central
Association territory include both class
and commodity rates-the full 5 per
cent, with the exception of coal, iron
coke, cement, brick, tile, clay, starch
and plaster. These excepted commod-
tiles, of course, include a large part
of the tonnage of these roads. The
commission finds that the roads did
not sustain their burden of proof in
reference to h advances on these
items.
In the case of the Eastern trunk
lines and the railroads in New England
the commission holds that they failed
to sustain the reasonableness of the
proposed 5 per cent. advances. The
commission found that the financial
condition of these carriers does not
warrant a general increase. The COM
mission held that the needs of the New
England lines are being cared for
locally.