The Denison review. [volume] (Denison, Iowa) 1867-current, 1914-12-23
Railroads Granted 5 per cent Increase

Railroads Granted per cent Increase
Washington, ID. c., Dec. 1S.-ln-
creaseS in freight rates approximate
ing per cent on all the railroads be-
tween the Atlantic sea board and the
Mississippi, north OF the Potomac and
Ohio rivers, were granted today by
the interstate commerce commission
in divided opinion, three excepting
upon certain heavy commodities which
comprise large bulk of traffic.
The increases will further apply to
railroads west of Buffalo and Pitts.
burg, which were granted partial adj
vances in the decision OF last August,
which denied them altogether to the
roads east Of these points. 1t is es-
timated thot the advanced rates will
increase the annual income OF the
roa DIS about $30,00O,O00. The commits
sion made its decision upon the show
ing of the railroads that in addition to
conditions from which they previously
asked relief. they are now confronted
With an emergency because Of the war
in Europe.
With Commissioners Harlan and
Clements dissenting, the majority OF
the commission declared:
"Whatever the consequences OF the
war may prove to be, we must rccog-
niZe the fact that it exists; the fact
that it is a calamity without prece-
dence, and the fact that by it the
commerce OF the world has been dis
arranged and thrown into confusion.
The means of transportation are tund;t
mental and indispensable agencies in
our industrial life, and for the com
monwealth should be kept abreast OF
public requirements"
Concessions That Are Made.
The carriers are permitted TO make
the applied force advance i'll rates eX-
cept rail-lake- and-rail, Lakeland rail
and rail-lake traffic; rates on anthra-
cite coal are held by uneXpired orders
from tho commission.
After furthe. consideration the com
permits advances to be made
also on cement. starch. brick, tile, clay
and plaster. On these commodities no
advances were permitted by the deci-
sion OF August ].
Joint rates bttween official class
ification territory and territory south
of the Potomac and Ohio east Of the
may be increased not to
exceed 6 per cent.
Interstate rates to and from New
England also may be increased not to
exceed per cent.
The application Of the eastern
roads for rehearing OF the rate case
was made on September 1st last on
the ground that the European war
and other stated reasons had mater
tally changed conditions since the
previous decision was given. The
petition for a rehearing stated that it
was made in behalf of 112 railroad
comprising thirly-fivc rail
road systems in ''ofticial classifica-
ton territory 1t set forth that since
the commissions previous decision,
facts and conditions have arisen war
ranting rehtaring on the subject"
it was stated since the
previous decision the complete in
come account for the fiscal year end
ing June 80, 1914, had become avail
able.
Special Plea OF Railroads.
''The unforeseen European war; the
petition went on to say, 'las brought
about an unparalleled destruction OF
wealth and dislocation OF credits
the civilized world. 1t is
certain that the competition for CAPT
tai will be keener and interest rates
higher for some years to come than in
any corresponding period within living
memory. The emergency thus result
ing is extremely serious
Harlan Strongly Dissents.
Chairman Harlan, while agreeing
that the rules that roads have estab-
lished their need Of additional net
revenue in even greater amounts than
$4,000, 900, which the carriers would
indicate would result from the per
cent increase, declares his entire dis
sent from the first course now APP
proved by the commission for permit
ting tht carriers to augment their
revenues.
THE original record contained no
evidence tending to prove that any Of
the proposed increased rates affecting
trunk line of New England territory
were just and reasonable" he said,
land this deficiency in proof was not
supplied under further hearing. The
records showed financial conditions OF
the trunk line carriers generally to be
much more favorable. We pointed
out. however, in our original report,
the sources from which the needed ad-
ditional net income could and should
be obtained, namely. by revision of
rates and Acknowledgement of prac-
tees found to he unremunerative or
wastetul. The beneticent effect of an
revision OF rates is shown
by the results obtained in New Eng