Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-12-08
Barden Brothers Company; on Dec.
the Fibre Products Company.
Public Utilities Discusses
The Matter of FREIGHT Rates


'One Of the most important and far
reaching matters which this or any
other commission is called upon to con-
slider, is that relating to freight rates."
say the Public Utilities commissioners.
BENZ. F. Cleaves Of Biddeford, William b.
Shelton of Lewiston and Charles W.
Mullen of Bangor, which was recently
filed with the Governor and Council.
Touching on this important matter. the
commissioners say:
Each citizen, whether he be a shipper
because a freight charge OF some sort en-
tiers into the final cost of every article
used or consumed anywhere in the State
The average person gives this matter but
little thought because the amount OF his
contribution is ordinarily very small. But
to the constant shipper whose yearly
freight bills may amount to thousands Of
dollars, difference of one cent hun
bred pounds materially affects his profits
or losses as well as the price he must
charge his customers.
This commission has had many COM
plants Of an informal nature with refer
ence to freight matters and alleged dis
elimination, and has conducted. as best
it could, an investigation of the general
subject of freight rates.
early this year we felt that we needed
the advice of some one who was expert
in freight matters, and suggested that
we be permitted to employ the same ex-
pert who gave his advice and service to
the New Hampshire Public Service Com
mission in it's freight and passenger
rate investigation two years ago. The
governor and council evidently felt that
the subject was one which the commission
might investigate through its own ex-
perts and declined to authorize the ex-
penditure. We were therefore and still
are, left to our own devices and are
giving to the matter the best effort that
our information and present force permit.
We have taken up with the managing
officials of several of the common car
riers this subject of commodity rates. If
the railroads do not within reasonable
time bring about a decided change In the
classification of commodities and the ap-
plication Of commodity rates. we shall
feel that it is our duty to undertake an
investigation and Encouragement which
may correct some Of the more glazing in
CAPABILITIES at least.
1--WE feel that we ought to call atten.
ton to a matter which recently has been
suggested to. the commission and that is
that each of our railroads during the
next year will have to have more money
for the conduct of it's business. 1t is
claimed that the eight-hour law adopted
by Congress and effective on and after
January first, 1917, will increase the oper-
ating expenses of the railroads very ma
terially. 1t is said that other increases
in the cost of labor and of materials will
further add to the burden of the railroads
and require the payment of an additional
sum to it by it's customers. Some idea
may be obtained Of the Importance of this
matter from the fact that one of the rail-
. roads says that is must have $725, 600. more
for the year ending June 30, 1917, than It
received during the year ending June &c.
1916. Other railroads claim that they re-
qure sum which. though somewhat
smaller in amount, involves the same per-
centage of increase. We do not know at
the present time whether the needs of the
railroads are as great as claimed, and
many elements must be considered before
any safe conclusions can be drawn.
1.-The Interstate Commerce Commission
and nearly all of the State commissions
have what is known as the power OF
suspending a proposed rate for the pur-
pose of investigation This means that if
any public utility, whether railroad or
noD proposes new rate which is an in
crease over existing rates, the Commits
sion, either upon complaint or upon its
own motion, may suspend such rate for
definite period, and during the time of
such suspension give full opportunity to
interested shippers and consumers to APP
pear and affirm their belief in the neces-
sity of the raise, or protest against the
same and give their reasons therefor. An
instance of this is foun: in the investiga-
ton by the Massachusetts Commission
which occupied nearly a year and in
volved large increase IN passenger
rates upon the Bay State Electric Rail-
road system in that commonwealth.
I'VE have no such power. Under the
law, any public utility may file rate,
even though it be an increase, and at the
expiration of 10 days it becomes effective.
and our authority is limited to initiating
upon our own motion an investigation or
proceeding upon the complaint of 10 or
more persons, firms or corporations. The
result is that we do not often know
whether the rates should become effective
or continue to be in force, until they have
become effective for some considerable
time and complaints either formal or in
formal have reached us.
eff we had this power of suspension and
any common carrier proposed an increase
In its rates substantial in amount and
far-reaching in effect, we might we'll be
justified in assuming that it's customers
would be interested and entitled to be
heard and that it would be fair to post
pone the effective date of such increase
to such time as would give opportunity
for complaining patrons to appear before
the commission and be heard. We shall
suggest to the incoming legislature the
advisability of so amending our law that
we may have this power of suspension
for investigation With that power. any
proposed increase in rates upon, for In i
stance, coal, (the rate upon which has |
been recently increased), pulp wood, pap |
er. mill supplies, boots and shoes, farm |
and products, in fact, any OF
the several articles which are of universal |
use or consumption, could be suspended |
and an investigation made which woulo |
give opportunity to the utility and to the
,o,,,ro;pp nuh1ic IN inform the commits