The Sentinel=record., 1914-08-02
FREIGHT RATES
PARTLY GRANTED
INTERSTATE COMMERCE COM
MISSION IN DIVIDED OPINION
ON INCREASED RATES.
Increase is Granted in Certain Sec
tions But Denied Eastern Roads in
Other Territory.

I
of the per cent freight increases
asked by the eastern roads and de
MED others. Increases Will apply in
the territory north of the Ohio and
Potomac rivers and from a vertical
line drawn through Buffalo and Pitts
burg, west as far as the Mississippi
river. All class rates and many
commodity rates are increased per
cent in that section.
No advances were permitted east
from Buffalo and Pittsburg to the At
lantic seaboard. That excludes from
| the area from which the railroads
viii receive benefits the greatest
traffic producing centers of the
country
Commissioners Daniels and Me
| Chord dssented from the majority
opiaion. Mr.. Daniels held that a 8
per cent increase should have been
general; that the railroads were en-
titled to il to meet the higA cost Of
living. Mr.. McChord held The rea,
sons which the majority held to war
rant an increase west of Pittshurg
applied equally to the east
The majority. headed by Chairman
Harlan. held as to rates west Of
Pittsburg. that they were the lowest
ia the country and warranted an in
crease. While il was held that the
income of the eastern railroads was
smaller thaa demanded in public in
tercst NO showing had been made
waTranEins a general increase. The
real ro ief The commission held. for
the New Eagland roads and those in
central freight association territory
was financial reorganization upon a
sound basis. ii was held that rather
thal raising freight rates the rail
roads should discontinue costly free
service 10 shippers develop effic-
iency Of personnel and equipment,
stop Swing free passes and possibly
increase passenger fares to Keep pace
with the high grade service the pub
.c demands.
abe "crisis" which railroad man.
azers protested was confronting
them vas PRONOUNCED to have little
foundation. The commission de-
nounced what il characterized as a
propaganda to influence its decision
and added there was no doubt it had
seriously aggravated the present
commercial DEPRESSION
Such advances as are allowed are
expected to increase the income of
the railroads about / IL per cent.
Such principal east ald west roads
as the New York Central, Pennsyl
vania, Erie and Baltimore and Ohio
will benefit by the advance to the
extent that they have lines running
from the cast over into the territory
into which the advances apply.
Coal, which comprises more than
one-half the total traffic, will have
70 advance Neither viii coke, brick,
tile, clay, starch. cement, iron ore
and plaster. There will be no in.
grasses on AXE and rail rates.
A summary of the decision, pre-
pared by the commission, follows:
The contention Of the railroads
that their revenues under the pres
sustained the commission saying
that the operating income OF the rail
roads in official classification terri.
tory, taken as a whole, is smaller
than demanded in the interest Of
both the general public and the rail
roads
The railroads present financial
difficulties are recognized by the
commission as a problem not only 0f
the railroads but Of the public which
it is the duty of the commission to
help sove.'
Speaking of the need of the car
riers for additional revenues, the
commission says:
1T is our duty and purpose to aid
as far as we legally may in the sou-
tion Of the problem as to the course
carriers may pursue to meet the sit
uation"
The commission points out that the
6fficial classification territory EN-.
braces three rate territories, known
as the New England territory. east
of tAe Hudson river, the trunk line
territory petween the New England
tcrF tory and the Baffslo.Pittsburg
lines and the central ,reight asso-
cialion territory between The Buffalo.
Piusburg line and the Mississippi
and that the financial ana traffic
conditions of the railroads operating
in these three rate territories differ
widely.
The commission finds that the
rates in central freight association
territory as a whole are lower than
the rates in any other part of the
u1ited States. If the average freight
rate had been as high ON the central
freight association territory lines as
on the roads in trunk line territory
the former would have earned in 1919
$56'000000 more than they did, and
that the 2S representative roads in
central freight association territory