Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-02-05
SOUTHERN RAILROADS
DISCUSS FREIGHT RATES
fivo Presidents Join in Statement
to Patrons Of Their
Lines.
ST READJUsT CHARGES
Present Inequalities, Condemned by
Interstate Commerce Commission,
Are an Inheritance From Former
Times and Different Conditions.


Tho recent order OF the Interstate
commerce Commission, enforcing the
!ong and short haul clause OF the act
10 regulate commerce, has made ncces-
sary n general readjustment OF freight
rates throughout the Southeastern ter
ritory. according to statement adj
dressed ITO the People Served by tho
railroads OF the South" and signed BY
Presidents J. II. Kenly. of the Atlantic
Coast Line: w. a. Winburn. OF the
Central OF Georgia; H. II. Smith, OF the
Louisville and Nashville; w. j. IIara-
nan. OF tho Scaboard Air Line, and
Fairfax Harrison. OF the Southern.
RAILROADS ISSUE STATEMENT
TO People: OF THE SOUTH
The statement follows:
I'm order OF tho Interstate Commerce
'ommisslon. pursuant to requirements
OF Federal law. compels II general re-
vision OF Southern freight rates. 1t
IS proper that the people OF the South
should be informed rs to the reasons
Tor this revision and the principles
Uron which II is being made.
Excepting the Norfolk and Western.
chesapeake and Ohio and Virginian
Railways. which lie In official classih-
cation territory, the railroads OF the
southeast receive virtually no part Of
The per cent increase I'm rates recent
~ ac1uicsced In by the Interstate Com
nercc Commission. While the need OF
revenue Is certainly no less than is
that of the Northern and Eastern roads
that need is In no way related to the
revision OF rates now in progress which
arises solely from the necessity Of more
nearly conforming to tho Ho-callcd
long and short haul clause" OF the law
AS amended In 1910. and az now con-
strued by the Interstate Commerce
Commission.
Tho original act to regulate COM
o. IL. 1T
rates for n longer than for shorter
distance within the same line or route
under substantially the same circum-
stanccs and conditions. The carriers
we're free to meet competition AZ they
fourd II, and were required to answer
only upon complaint rs TO the reason
.th!cncss OF their acts
Tn" amendment Of 1910 deprived the
"arriers OF tho right to initiate de-
nartures from the long and short haul
reourcncn'. and they may no longer
meet competition an they find IL II
The long and short haul requirement
,. the law In involved, unless they
an lrrt obtain the approval of the
htcrztatc Commerce Commission.
They were furthermore required. by
mis- change in the Law, 10 apply to the
commission for authority TO continue In
force rates existing at the time OF its
passage. which contravencd the long
aud short haul principle
ENISTING RATES On INHERITANCE:
FROM FORMER CONDITION
The existing rate structure OF Tho
south is not the creation OF traffic man
ayers OF this generation. II is an in
heritance from those who built the
roads. and finds It's explanation largely
IN the geography of the South, and in
a public policy which encouraged its
creation, The changes now in progress
are not OF the carriers choice.
Water competition. the most import
ant factor In bringing about depa rture
from the long and short haul principle
OF the law. has hccn peculiarly intiu-
entail on the rate adjustments OF the
south, surrounded MS II is OH thrce
sides by narigable water and pene-
rated by nnvigable streams. Termini
of the first roads were on navignple
waters and rates between those ,ei,nini
were from the beginning depressed be-
cause Of this water competition When.
subsequently. railways were extended
10 the interior. distributing points were
thereby created. where there arose com
petition OF two or more markets. or
~ TWO or more carriers. resulting in
1cDrcssions In rates. even when there
was no direct water competition.
These conditions undoubtedly Contri-
hUtcd 10 the commercial and Industrial
heNolpmcnt OF the interior South. and,
while they resulted In more frequent
departures from the long and short
haul principle OF the law. the carriers
had every reason TO believe that their
'ractice had the approval of the public.
wen when IL Was not directly the re-
suit OF public demand.
COMMISSION HAS CONDEMNED
MANY INEQUALITIES
Now. the Interstate Commerce Com
mission. pursuant to the requirements
~ an amended law. has concluded nm
lNqJiIy into rates from the Eastern
scahoard. including the Virginia cities.
from South Atlantic and Gulf ports
aud from Ohio and Mississippi River
rrossings. into the Southeast and Miss
issipp Valley territory. AS a result
Dhe commission has in large measure
Condemned existing departures from
Tie long and short haul requirement.
cNccpt where justified by competition
hcyond the control OF the rail carriers,
nharse which came TO be restricted to
re; direct or Indirect water compo,i-
"hviously, the removal OF inequalities
90 iemncu by the commission, by re-
uo ions only, would result in dis
SER to the carriers. This fact Is
CroSniZed by the commission, which,
m lis review of the situation. stated:
1T !s entirely clear that the reve-
uNcs OF large percentage OF tho lines
"a the Southeastern territory would be
50 impaired by such a procedure rs to
make IL impossible for them TO meet
their operating expenses. taxes and
ltNed charges ana leave their stock.
holders even a moderate return"
IL is equally obvious that 1t would be
Unfair to punish the carriers. in con-
forming to changed public policy.
FOR acts which at the time of commits
sion were approved by public opinion.
TASK Of REVISION
Is MOST DIFFICULTY
Hence in working out the order Of
The commission such elevation of rates
10 the depressed points must accom-
pany reductions 10 the much larger
number of intermediate points rs will
at least preserve the revenues OF the
carriers.
The task Of revision is no easy one
Il has been undertaken in loyal effort
10 conform TO the law, as now inter
preted, and to be fair to all.
Departures from the long and short
haul principle in the South are not
confined TO interstate traffic. There
are in the South n great many intra-
STATE rates that do not conform to the
principle. IF undue determinations arc