Evening journal., 1914-08-03
Rate RAISE denied
eastern RAILROADS
Western Roads, However,
Are Granted the 5 Per
Cent Increase
MANAGEMENT
Is CRITICIZED

ceterred opinion OF the Interstate
Comerce Commission upon the ap-
plication or the Eastern railroads for
authority to increase their freight
rates per cent was made public by
that body on Saturday afternoon. The
opinion, written by Chairman Harlan,
IS concurred in by Commissioners
Clements. Clark. Meyer and Hall
Commissioners McChord and Daniels
fled a separate opinion, differing
from the majority as to part OF
the findings.
Higher Rates Defined.
Here are the most significant fea-
lures of the commissions report:
/. Class rates effective in central
freight association territory are so
low that an increase or . per cent.
is clearly not unreasonable, except
the rates on coal. coke. iron ore. ce-
ment, brick, tile, clay, starch and
plaster.
3 Financial conditions of car
iiers I'm trunk line territory do not
warrant a general increase Of freight
rates.
2. Tho operating income Of the
railroads In official classification ter
ritory is smaller than is demanded
in the interest of both the general
public and the railroads.
4. New England lines are disal-
I lowed proposed increases in these ter
ritories, their needs being cared for
locally.
3. Practices Of granting free
transportation of passengers and pri-
vate cars should be further restricted
| by the carriers.
s. Railroads required to ascertain
to what extent special services rem
dered by carriers to shippers for
which no special charge is made con-
stitute an unjust burden upon the
| carriers or result in unjust discrimi-
nation among the shippers.
e Railroads should undertake an
extensive inquiry into possible econ
omics in operation.
For a General Advance.
In dissenting from the majority
opinion Commissioner Daniels holds
that the 5 per cent advance should
have been accorded generally. His
opinion is based on the inadequacy of
the present revenues of the carriers
to afford a fair return on their prop
erty and to attract such additional
investments as are required in the in
terest Of the public He also con-
tends that the advances meagrely al
lowed in central freight association
territory, but denied wholly in trunk
line territory. will prove insufficient
to afford a fair and reasonable return
to the carriers for the services they
perform. Commissioner Daniels calls
attention to the fact that a livinf
wage is as necessary for a railroad
as for an individual, and that Il
eventually may come about that the
railroads will be owned and operated
by the Government If not given the
assistance to which they are entitled
Commissioner McChord holds that
the reasons which impelled the COM
mission to approve certain changes
in central freight association rates
apply equally to trunk line rates. He
contends that transportation condi-
tions in the two territories are not SO
unlike as to indicate the wisdom OF
dissimilar treatment of the rates pro-
posed by the carriers in the entire
official classification territory.
The commission, in his opinion
dwells at some length upon the con.
tention Of the railroads that they are
facing a crisis and that the rates
asked for should be allowed In this
connection, the commission says:
Rates Did Not Hurt Credit.
"The credit of our railroads hal
undoubtedly suffered in recent years
but largely from causes that wer,
Independent of their rates. The credi
of some of our leading railroads hal
4 also been strained by the too fre,
use of it in unwise and sometimes
4 disastrous extensions by the acQui
sition of properties not forming I
part Of their railroad system.
I The campaign of publicity has ais,
increased the strain on the credit o
the railroads. But the earning carac
! ity of our railroads is so greao thai
\ their credit will soon be restored D
their revenues are conserved"
The commission is particularly 80
we're in its condemnation of the propa
n ganda which operated in various paifi
Il of the country, endeavoring 20 nnu
ence the decision of the commission
4 and hasten il to early action.
"Tbe letters and telegrams receiv
ed says the commission, "disctosel
an unmistakable purpose to hurry th
& body to a conclusion before the recorl
a had been closed, and before there coull
/. be an opportunity TO hear, much les
\ consider, the testimony that the pro
testants and others desired to offer il
d protection of what they conceived 4
n be their interests as shippers. All thi
N was done regardless OF the fact tina
81 the commission is under the expires
d statutory obligation of aifording a full
q hearing in such matters to all who de
q sire to be heard, and have REASONABLE
grounds for a hearing"
4 TOO Much Free Transportation.
Dealing with the subject of fre
4 transportation of passengers and pri
n vate cars, the commission calls atten
y tion to the fact that during the clever
n months ending November 30. 1913, 4
81 roads in official classification territor.
n issued 620 66s annual passes and 4OS,
n S4S passes for shorter terms. In tn
q month of June alone 4s2,709 passes 70
f single trips were issued.
81 "June perhaps is not a representa-
n tive month" saws the commission, "hu
81 mt that rate the number Of trip passe
N issued in the year would be approx
n mately 5.792, 300, representing over on
n billion passenger miles"
b The commission suggests that a.
h the railroads in official classihcauo
E territory examine carefully the
freight rates. rules and regulation
Il with a view TO increasing rates this
E are found 20 be clearly unremuneri
h tive.
MANY unremunerative rates" say