davidaulloa/AmericanStories huggingface dataset:
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
CENTRAL LINES HIT.

Second-The commission points on,
that the official classification territory
embraces three ra.e territories known as
the New England territory, lying east or
the Hudson River; the Trunk Line terri
tory, lying between the New England Ter
ritory and the Buffalo-Pittsburg llne'
and the Central Freight Association Ter
ritory. lying between the Bufalo-PItts,
burg line and the Mississippi River. ana
mat the financial and traffic conditions
OF the railroads operating In these three
rate territories differ widely
The commission hnds that the rates IN
the central territory. as whole, are NOT
only lower than the rates in either the
Trunk Line or the New England terrltoIy
INT that they are lower than the rates
in any other part OF the United states,
n the average freight rate had been as
high in Central territory as In Trunk Line
,nrrttnry lines in the former would have
earned $50, 900. 900 more In 1913 than they
actually did. and the twenty-elght repit-
sentative roads in Central territory, wnieh
are most in need. would have earned sZs'-
900. 900 more.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
RATES TOO LOW.

First-Thc contention OF the railroads
that their revenues under the present
scale Of rates are inadequate is sustained.
the commission saying that:
The operating income Of the railroads
in official classification territory, taken as
a whole. Is smaller than is demanded In
the interest Of both the general public
and the railroads"
After referring 10 the duty the rail-
roads owe TO the public in continuing
efficient and safe service. the commits
sion declares that the public owes a
corresponding duty 10 the owners OF the
railroads and must afford them a full OPP
portunity TO earn a fair return on their
investment and 10 share in the general
prosperity. SO long AS the rates eNacted
BY them are just and reasonable. The
report says
1T is not only consistent with ma
tional policy that invites the private own
ershIp OF railroads that there should be
n liberal return on Il particular railroad
investment, when the property has been
wisely planned and honestly constructed
and IL efficiently managed but the fun
development OF that policy, as wei AZ
justice. requires that such return should
be made.
.'The puhlic interest demands not only
the adeouate maintenance OF existing
railroads but constant Increase or our
transportation facilities to keep pace WIKI
the growth and requirements OF our com
merce. H. however, that development u
to he accomplished with private capital
in conformity with our traditions, noth,ns
c,n he more certain than that the IA
cIl,tles will not be provided except under
such a system OF regulation as VIII rea'
sonabiy permit a fair return on tho money
The present financial difficulties OF tn
railroads are recognized by the commits
sion as n problem not only Tor the RAJ,
roods hut also for the public, which II Il
| tho duty OF the commission to help u
solve. The commission says 1T IL GU
duty and purpose TO AID. as far as W.
legally may. in the effort to meet the SIT
uatlon,"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
SOME GLAD, SOME NOT.
Railroad Men Express Diverse Views
on Decision.

Diverse views were expressed last night
on the rate decision by railroad officials In
this city The majority OF the men who
could be reached were deeply disappointed
Others found much to be hopeful over In
the attitude OF the commission No one
wished to make any detailed comment
without having studied the decision in
detail.
Several railroad men said frankly that
the 5 per cent. increase granted for the
Central Freight Association territory
would not add $4,000. 600 to the gross
revenues. OF -he Eastern ra!lron-s. Rail-
road men In Washington estimated the
gross increase at s2O.000,000. The rail-
road men here pointed out that the per
cent. increase was allowed on practically
only 80 per cent. OF the total freight ton
mage In tho Central territory that this
would amount TO less than per cent. OF
the gross revenues OF the Eastern roads
w. II. Truesdale. president OF the
Lackawanna, expressed disappointment.
The railroad men throughout the
country" he said, will undoubtedly re-
gard the decision as a very great disap-
pointment"
Mr. Truesdale was asked what hs
thought about the recommendation IN
regard 10 passes,
We'll, the persons who receive the
passes are employees" he said and II
you cut out the passes they Will demand
! Increase in wages
Z President T.. ID. Underwood OF the Erie
said: Il will make no comment until
, have read the decision
! Louis ]. Spence, traffic director OF the
| Southern Pacific, seemed cheerful
1T is the best thing that could be
/ had" he said. 1T will instll confidence
| in The investors ana make II easier Tor
| the railroads to get money for equipment
and improvements
Effort to get other railroad officials
was unavailing. as they were out OF
: town over Sunday. Also many are In
! Europe President Loree Of the Della
ware and Hudson Is In Europe. Vice
President Place OF the New York Cen
trail Is on his way back from England
Frank A. vanderlip, president of the
National City Bank, seemed fairly wei
pies sed with the decision
at IL better than | expected" he said
/ "My impression from the brief abstracts
! have heard of the decision Is that II II
along the right direction"
Dispatches from Philadelphia said tina
President Rea OF the Pennsylvania re-
fused absolutely to discuss the decision,
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
RATE BASIS WRONG.

Fourth--The commission finds that the
class rates effective In Central territory
are so low that an increase Of 8 per cent.
would clearly not be unreasonable. but
points out that the class rate structure in
that territory Is honeycombed with In
consistencies, and says:
THE attitude OF the oficials OF the
roads operating in Central Freight Asso-
citation territory as disclosed on the rec
ord indicated that they Joined In this
proceeding not because they thought the
so-called per cent Increase of rates
would meet their requirements or that
this form OF relief IL appropriate In Cen
trail Freight Association territory, but
only because Of the desire OF other and
more powerful lines operating In Trunk
Line territory to present to us In this
proceeding one general plan OF relief.
These officials. while stating that the
so-called per cent. increase would add
substantially to their revenues. expressly
condemn the present basis OF rates as
unsuitable and unsatisfactory. The lead
ing railroad witness on the question
affirmed. with some earnestness. that
the class rates do not sustain any logical
| relation to each other and that under
/ the present basis OF rates certain ship
pers OF certain classes of freight have not
| for years borne their share of the bur
den OF transportation and in addition to
| the rates being extremely low, they are
unscientifc and illogical.
This view was also expressed by many
| large shippers. A rate expert OF the Chi
cago shipping interests whose testimony
In another proceeding was put on record
here, testified that the Central Freight
| Association scale was relic of bar
| barsm.'"
| The report also says:
! Counsel who presented and argued
the case for the Central Freight Asso-
citation lines admitted and definitely
stated that. while the 8 per cent. Increase
would help the financial situation, the
whole rate structure in that territory
needed Reimbursement that many OF
the lines In the territory would not sur
vive without an overhauling of their
rates. and could not serve tho public as
they should until these rates are read
| Justed and brought up on some logical
basis.
He also stated that II the rates were
now advanced on the so-callod 8 per
cent. basis IL would he but a short time
| before those lines would be before US
| again. He gave express notice that the
| Central Freight Association lines. II the
| per cent Increase were now allowed
would In due time file tariffs and bring
the matter to the attention OF the com.
| mission"
The commission then adds:
There can be no doubt upon the rec.
| ord that the carriers In the Contra
Freight Association territory ought. IN
| the public interest. to have as much adj
dtional revenue as would be produced
by per cent. increase az modified
herein and possibly more II IL not i'm
probable. however. IN view OF the modi
fications we have required In those tar
iffs that they will fird II more desirable
AT once 10 undertake the readtustmen
which they assert IL necessary"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
HINTS FOR ROADS.

Seventh--The commission suggests that.
following the plan adopted In New Eng
land conferences be held between the
State commissions, the carriers and rep
resentatives OF the public with view 10
advancing such passenger fares as may
be shown to be clearly unremunerative,
with respect TO fares fixed by statutes
In certain States the commission expresses
confidence that II these fares are clearly
shown to be unduly burdensome to the
carriers the people OF. those States will
cheerfully aoquiesce. as the people OF New
England have done, In reasonable In
creases. and that the necessary legislative
authority will be promptly given.
The commission further says:
AN accurate ascertainment and frank
disclosure OF operating costs Is the most
effective protection against the possibility
OF unjust legislation. for we must assume
that the public conscience intends no In
Justice against the owners on these great
properties that are devoted to the service
OF the public"
And adds
Passenger fares are paid directly to
carriers by those making use OF the SER
vice and they know what II costs them.
Payments for freight charges. while less
direct. are none the less actual, The gem
eral public does not know and probably
does not stop TO consider what proportion
OF the cost OF ton OF coal or OF the
price OF dwelling or the rent OF an
apartment represents freight charges but
the cost OF freight transportation enters
into the cost or selling price OF practically
everything used by the public, In many
cases TO be sure, freight charges repre-
sent but n small proportion OF the total
cost of things used or consumed, but II
IL quite probable that tho average family
| pays much more In the course OF year
! as freight charges than It does for pas
senger fares.
I'VE know OF no provision Of law under
which we would ne justified In increasing
| freight rates 70 provide return on prop
erty used exclusively in the passenger ser
vice, much less TO take care of losses In
CURED In such service, In our opinion
each branch OF the service should con
tribute its proper part OF the cost OF oper
alton and on return upon tho property de
voted TO the use OF the public"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
TOO MANY PASSES.

Tenth--The commission recommends
that the practices Of granting free trans
portation OF passengers and private cars
should be further restricted by the car
riers. and calls attention to the fact that
during the eleven months ended Novem-
Der 30, 1913. scventy-elght roads In Of
hcial classification territory issued 629,-
66S annual passes and 40s,s4S passes for
shorter terms. and. in addition thereto.
in the single month Of June, 1918, issued
passes for single trips to the number OF
4s2,709. The commission says:
June is perhaps not n represent alive
month, but at that rate the number Of
trip passes issued In the year would be
approximately 5,792.500, representing over
one billion passenger miles The amount
OF travel on annual and term passes has
net been determined. At the average rate
per passenger mile In official cassfca-
ton territory In 1913 the passenger miles
represented by trip passes alone would
have yielded IN passenger revenue SIS
52O. 600. II 10 trip passes is added the
travel on annual and term passes. II will
perhaps be found that the travel on
passes exceeds 10 per cent OF tho total
passenger travel in official classification
territory.
Complications prepared by the com.
mission show that the revenue from pri-
vate cars handled free during thu year
1913 on eiRhty-eight Of the roads which
have made answer to our question would.
at tariff rates. have amounted to sst4.-
25O79
But tho direct cost and revenue loss
attendant upon tho present practice are
less serious than Is its demoralizlng Of
feet. II IL natural that subordinates
should he wastcful when their superors
are extrnvagant, and that efforts to Sc
cure economies should often nrove futile
when. at the expense Of stockholders or
the public. the luxury of a private car
is freely granted for personal and private
use to officers and directors or even to
subordinate officials and members OF their
families.
The record Of one Of the railroads
most prominent In the appeal for a freight
rate advance discloscs such liberal grant
Of free transportation OF private cars not
only to directors and officers Of other IN
dependent railroads but to lesser Off
Gals of such carriers and 70 members OF
their families Among tn" hencticlarles
| were the wives Of first. second and third
I vice presidents. the wife Of n superinten-
dent the wife of n superintendent OF
B telegraph the mother Of a chairman. tho
vice-pres!dcnt Of n telegraph company and
the chief clerk. TO a president. Indeed
/ not n private car merely, but two specia
trains were furnished free to the widow
/ Of a former director the tariff rate for
| which service would have been S3,AG6
| The wife and daughter Of the president
! Of that company ENJOYED in n single year
/ free transportation IN private cars fol
nine trips on which the tariff rates woult
have aggregated s3,577."
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
rrI.,nv Examine. witness.

s.r.t.r Hr.stow conducted the exami-
-,,..,, t,.ja, Tic had before him the
rspor, pf ,un rujo committee ana re-
,,,fs .rlu1 The Interstate Commerce Com
......, The only other member OF the
cor,r.t,os tn ask any questions was Sem
,,or E.,d of Missouri, who had very
r,. 20 ray.
Whom 'Hs committee adjourned the
chs r,rln AND every member of II refused
DOS t,,Iy 90 discuss what had happened
r.. "..l" was ON very tight II IL be-
us,,-9 mat Mr.. Wurhurg made 1t con
dt.op .t his appearance that the meeting
vas ta h, executive and that any state
rnsr's 900 should make were to be held in
corH'.u...
Trurt. D. Jones OF Chicago believed
'ha' Do. Hl1 such at understanding with
the committee and 'dkcd very frankly
about his private AFFAIRS under the inn
pr,ss.uu that no publicity was 10 be given
70 ,H.rr. aud then was surprised to md
he testimony disclosed at first by piece
resl and later published IN It's entirety
by order oc the Senate. MIR Jones com
p'lruI strongly OF this action Of the
senate.
Eyor,tIug Indicated to-day that Mr..
Wa-hurg had taken precautions to see
TIA, N's statensnts before the commit
tee given In confidence. should not be
published broadcast. Not member or
the committee would discuss what went
IN inside. but there wer" statements tend
.rg - prove that Senator Bristow was
the only qucst'oncr. that Mr.. Warhurg
mad, very favorable impression on the
committee and that he will undoubtedly
ae confirmed.
sars,1r Bristow questioned Mr.. War
m-g H.most entirely upuu IN" alleged part
played Ny Kuhn. Loeb GO. In the anai's
~ th, Rock fsllrl and Chicago and
Alton railroads He mad certain data
from t.r Interstate Commerce Commits
sion ana no questions apparently We're In.
tended O. ,.' from Mr.. Wdrourg M,
t,a vt Ga. ethics Of private bankers II
'.e matt. ut financing and reorganizinl
..H.ro.4'.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
RAISES NOT GRANTED.

Sixth-The commission finds that the
financial conditions OF the carriers In
Trunk Line territory do not warrant a
general increase OF freight rates and that
the needs OF the New England lines are
being cared for locally and disallows the
proposed increases in those territories
but under the title Of How Carriers May
Increase Their Revenues finds that
great opportunity exists for Increasing
the net revenue OF all carriers in official
classification territory otherwise than by
resorting 10 general advance In their
freight rates" and makes the following
snecific sugEestion:
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
BIG DIAMOND FRAUD CHARGED.
Itinerant Dealer Accused of Plot 70
UndervaIue Jewels.

a conspiracy by which thousands Of
dollars worth Of uncut diamonds have
been brought into ,ne country AT less than
their real value IN order 10 defraud tho
Government out OF customs duties was
charged yesterday when David Probstein,
an itinerant diamond dealer. was ar
raigned before Commissioner Clarence s
Houghton on charge OF custom fraud
He was sent to the Tombs in lieu OF $4,000
bail.
conspiracy with Leopold Bochner. another
diamond dealer to undervalue imported
diamonds.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
STREET KILLINGS ON DECREASE
Brooklyn Only borough showing
Increase In AUTO Accidents.

Tho report of the National Highways
Protective Society shows that Iil children
wore killed by vehicles in the streets OF the
city since January = ~ of them during the
last month. Since the first of the year
automobiles killed u children. trolleys 20,
and wagons 40, street vehicle fatalities in
the past month lust total 90.
Col. Edward :. Cornell. secretary Of the
society, SAYS that trolley fatalities are de-
crcasing Deaths by Vehicular traffic IN
Manhattan are tho lowest since July 1908.
but in Brooklyn there has been an increase.
especially in automobile fatalities
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02

ieters, copies OF editorials, cartoons and
the like that were sent to II.
Roads That Get increase.
These are the thirty-eight chief roads
liz the Central Freight Association ter
ritory which may avail themselves OF the
commissions full per cent. Increases
In freight rates for that territory:
Ann Arbor Railroad.
Bessemer and Lake Eric.
Chesapeake and Ohio OF Indiana.
Chicago and Alton.
Chicago and Eastern Illinois.
Chicago and Erie.
Chicago, Indiana and Southern.
Chicago. indianapolis and Louisville
Chicago. Peoria and St Louis.
Chicago. Terre Haute and Southeastern.
Cincinnati, Hamilton and Dayton.
Cincinnati Northern.
Cleveland. Cincinnati, Chicago and st.
Louis.
Detroit and Mackinac
Detroit and Toledo Shore Line.
Detroit. Grand Haven and Milwaukee.
Detroit. Toledo and Ironton.
Grand Rapids and Indiana
Grand Trunk Western.
Hooking Valley.
Illinois Central.
Kanawha and Michigan.
Lake Erie and Western.
Lake shore and Michigan Southern.
Michigan Central
New York. Chicago and ct. Louis.
Pennsylvania.
Peoria and Eastern
pCre Marquette
Pittsburg. Cincinnati. Chicago and st.
Louis
Pttsburg and Lake Erie.
Toledo and Ohio Central.
Toledo. Peoria and Western.
Toledo. ST. Louis and Western.
Vandalia.
Wabash
Wheeling and Lake Erie.
Wabash-Pittsburg Terminal Railroad.
Following is a list OF the eighteen roads
In Trunk Line and New England territory
which the COMMISSION decides must in
crease their revenue by economy and re.
form, and not through Increase in freigh,
rates.
Baltimore and Ohio.
Boston and Maine
Buffalo and Susquehanna.
Buffalo. Rochester and Pittsburg.
Central New England.
Central OF New Jersey.
Delaware and Hudson.
Delaware, I.ackawanna and Western.
Lehlgh and Hudson River.
LohiRh Valley Railroad Company.
Maine Central
New York Central Lines east OF Buff
falo.
New York. New Haven and Hartford.
New York, Ontario and Western.
Pennsylvania lines east OF Pittsburg.
Philadelphia and Reading.
Rutland Railroad Company.
Chesapeake and Ohio.
Western Maryland Railway.
OF the above Eastern roads, however
the New York Central. the Pennsylvania
the Baltimore and Onto. the Erie and IN
Chesapeake and ohio will all share IN IN,
increase through their lines in Contra
Association territory.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
MUST IMPROVE CONEY SERVICE.

'N' '.nHi. Service Commission has or
eer.u 'hn Clucy Island and BROOKLYN
helo4d Company to improve and in
~" Immediately the weekday service
'" We Fmuku avenue line to and from
'oney Island
N.'r Investigating complaints regard
e.. '"' Tia" the commission finds that
a. o. Is altogether inadequate" II
80, N1' '1nr" cars a'l a better
80. D." .e provided AZ once. $ W. Huff
.' 'n" uompany IL requested to
2, '" omission as to the details
'., ...J,H, he viii make.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
FUEL A BIG ITEM.

Twelfth-The commission calls atten-
ton to the fact that fuel next to wages
is the largest item in operating expenses
that the railroads in the United States
report their aggregate fuel cost to be
about $3.50, 100000 year and that the
cost OF coal Is increasing. and adds
Much has been done in recent years
by means of mechanical devices and
otherwise to reduce fuel cost
but II has been demonstrated clearly that
by knowledge and care on the part of the
employees and management much greater
savings can be made"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
USELESS HOLDINGS.

Fourteenth-The commission suggests
that "aa soon as reasonable opportunity
offers, properties heretofore acquired by
the carriers which are not used or htld
By them for transportation purposes be
sold" adding
Prom compilations prepared by the
commission OF the incomplete replies TO
our questions, II appears that the
aggregate cost of such investments
in official classification territory was
more than sRS4, 100000 Included In
these are properties of the aggre-
gate cost Of sls3,l+6,e5s, from which
no net income whatever was re-
ceiyed in the year 1913. These Invest
m.nts by the carriers have through IN,
creasing the amount or capltal reau.ren
To be raised, imposed In many eases n
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
CAR EFFICIENCY.

Eleventh--The commission recommends
"a careful review of methods for ncreas-
ing freight car efficiency" saying
Taking the average OF all roads In on
cial classification territory for the whole
year. the time car Is moving in trains
probably does not exceed three days out
OF thirty. and the car Is under load only
two out OF these three days. Further
more the cars under load are loaded on
an average 20 only about 90 per cent OF
their capacity"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02

to increasing rates that are found to be
clearly unremunetative and modifying
burdensome rules and regulations relating
to minimum weights and similar matters
where they may Justly be DONE" saying:
Many unremunerative rates had their
origin in fierce competition for traffic, or
under the menace of the big traffic OF
powerful shippers many such rates have
doubtless been continued through igno-
rance of the loss they entail upon the
carriers"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02

Ohio and the Norfolk and Western also
have important mileage In Central terri
tory. The systems in Trunk Line terri
tory. which have no mileage in Central
territory, are chiefly roads with large an
thracite coal traffic, and they are very
prosperous.
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
OPERATION ECONOMY.

Thirteenth-The commission also sug-
gests that "in other departments the
management undertake IN cooperation
with employees an extensive Inquiry into
possible economies in operation" adding :;
1.-The increased operating ratio or re-
cent years Is accounted for directly In
large part by increase In the rate OF
wages. but even greatly Increased rates
OF wages are perfectly consistent with
reduced unit labor cost"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
ROADS WEST OF PITTSBURG GET RATE INCREASE

great and unnecessary strain upon the
carriers credit with the result of an in
creased charge on all new capital Sc
cured and sometimes OF preventing i'm
provements which would have yielded
transportation economies"
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
SUGGESTS REFORMS.

Eighth-The commission suggests that
"ali the railroads In official classification
territory examine carefully their freight
rates rules and regulations with a view
The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
SUMMARY OF DECISION.
Commission Gives out OfaciaI brief
Of Its Findings.

The commission gave out an official
summary Of the decision as follows: