Newark evening star and Newark advertiser., 1914-12-18
RAILROADS
WIN RATE
INCREASE
Granted 5 Per Cent. Raise
Except on lew
Articles.
SCHEDULE DRAWN UP
IN EFFECT IN TEN DAYS
Coal, Iron Ore Not Affected.
Estimate $5O,OOO,OOO in Rev.
enue Result of Order.

WASHINGTON. Dec. 1s.-The ap-
plcation of the Eastern roads in the
freight rate case was granted in part
soday by the Interstate Commerce
Commission.
The comm lssion sranted u fiat in
crease of five per cent. in freight
rates, except upon coal. coke, iron ore
and Lake and rail- joint shipments.
Increased revenues of about s50,OO0,-
900 to the railroads, numbering about
125 affected are expected.
The commission fixed a scedule Of
rates which shall go into effect on
ten days notice, granting certain in
creases in the rates of railroads n
eastern classification territory.
In accordance with the order the
carriers are permitted to make the
applied for advances in rates except
The rail- lake-and-rai lake and rail,
and rail and lake traffic; rates on
bituminous coal and coke; rates on
anthracite coal and iron ore and rates
that are held by unexpired orders of
the commission.
After further consideration the
commission permitted advances to be
made also on cement, starch, brick,
tile. clay and p aster On these
commodities no advances were per-
mitted by the decision of August ].
Joint rates between official classi
dcation territory and territory south
of the Potomac and Ohio and east
Of the Mississippi may be increased
not to exceed five per cent.
Interstate rates TO and from New
England also may be increased not
TO exceed five per cent.
While the present existing differen-
tials among various AT antic ports
are preserved. the rates between any
rwo of them also may be increased
ave per cent
Generally, the commission held;
''Joint rates between official classi
fication territory tthe Easb on the
one hand and Southeastern rs, itory
tho Southwest and points on &C east
Of the Missouri river on the other,
may be Increased not TO exceed five
per cent. of the div sion of the rate
s.ccruing to the carriers in ofFtciat
classification territory IL these IN
sreases involve a change in the re'a-
tionship under the long and short
aaul rule between intermediate points
and more distant points outside Of
official classification territory, reiief
from the fourth section of the act
must first be secured ON regular ap-
plicat'on."
"The conflict in Europe" said the
commission, will doubtless create
unusual demand upon the world s
loan fund of free capital and may be
expected to check the dow OF foreign
funds to American rail-
roads. 1t appears that our railroads
represent the bulk of European in
vestment in this country. The rate
Of interest-the hire of capital-has
risen during the last DECADE and may
rise still further. 1t is computed that
In the years 1915 to 1917 the carriers
must arrange for the payment or re-
funding of securities aggregating
over $500,00O,0O0.
"Whi we differ as to the relative
Importance to be attached to the
various considera tons pre- -ented. we
agree in the conclusion that by virtue
of the conditions obtaining at prea-
ent it is necessary that the carriers
revenues be supplemented by in
creases throughout official classifioa-
ton territory. Whatever the conse-
duences of the war may prove to be
we must recognize the fact that it
exists; the fact that it is a salamity
without precedent and the fact that
by it that the commerce CT the world
HaS Dcen ulSdrIdu6eu anu tDIOWI
into confusion"
For the fiscal year just ended. -
the commission continued. the net
operating revenues, as shown by the
carriers, are lower than was esti-
mated when the ORIGINAL report was
issued. Not since 1868 have the OPP
Grating revenues been so low us in
the fiscal year June last From what
ever comparative STANDPOINT used the
net operating revenues of the last fis-
cal year must be regarded as unduly
low
while the gross revenue in that
year declined only about 3.4 per cent.
the net revenue shrank approxi-
mately 17.7 per cent.
"The fact remains that If the in
crease in depreciation and better
nlent accounts in the last fiscal year
over the average for five years Were
at1ded to their net operating income
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