Daily capital journal. (Salem, Oregon) 1903-1919, 1917-06-30
INCREASED RATE TO
RAILROADS DENIED
BY THE COMMISSION
Burden Of War Business Is
Not Found to Be Excessive
Of Over Costly

Washington, June 30.--The railroads
of the United States have lost their
fight for Is per cent increase in rates
The interstate commerce commission
Friday night denied their petition. The
commission s order was dated June p,
but was held back. Commissioners Nc
Chord dissented. The order sets forth:
!. That the operation Of the sched-
ules submitted by the railroads upon
which increases were asked, "be and
hereby are suspended until October 2S,
1917
Ore Rate Changed
2. Exception is made to schedules
applying 10 bituminous coal, coke and
| iron ore and naming rates in the south
ern district.
| 3. Exception is made in schedules
applying to bituminous coal, coke and
iron ore and naming increased rates
in the eastern district.
A. All schedules naming increased
rates applying Internationally be-
tween districts, excepting only those
applying to bituminous coal, coke and
iron ore between the eastern and south
ern districts.
5. That the use of the rates, charges,
regulations and practices stated in such
suspended schedules be deferred upon
interstate traffic until October %, un-
less otherwise ordered by the commits
sion.
RED Tape Deplored
The decision of the commission
strikes at the red tape that marks
most rate bearings. The present hear
ing was held under simplitied proceed
ure. OF it the commission says in the
majority opinion:
"Many Of the protestants requested
us to suspend their tariffs in order
that an investigation might be had, as
in their view is contemplated by the
statue, the implication being that an
investigation would be imposed with
out suspension. We have sat as q body
for practically whole month listening
TO testimony and arguments favoring
or opposing these proposed increased
rates.
Fairness is Assured
"The form of the investigation
which we adopted fitted the subject
TO be investigated. Had these proceed
ings been conducted subsequent to
suspension of tariffs, they could not
properly have been materially differ
cnt from what they have been. Every
one who appeared and expressed a de-
sire to be heard was heard, and no one
was denied fair hearing.
Further Testimony Unnecessary
"We might have sat for months
listening to the detailed testimony re-
lating to specific rates and localities,
but such testimony could have been OF
little assistance to us in arriving at
proper conclusion.
Commissioner Meyer concurs in the
conclusion with respect to carriers in
western and southern territories, but
dissents from the conclusion of the ma
iority "that an emergency exists in
regard to the carriers in the eastern
district of such character as TO make
it imperative to authorize at this time
the increased -class rates sanctioned by
the majority
Refers to Coal Schedules
These words of Commissioner Meyer
have reference to the exceptions made
for the coal schedules.
Apparently the commission, except
ing Mr.. McChord, in agreeing upon an
order, accepted the contentious of the
lawyers .of the shippers that the rail
roads were not entitled to any more
relief from the government than any
other industry which felt its expenses
crawling up on account Of the war and
that; in addition, the railroads all had
surplus earnings in their treasury suf
fieient and more to meet any increase
in operating cost and wages.
The commission finds that the war
has not affected the railroads as dis
astrously as the first general statement
of railroad witnesses might have indi-
Gated.
War Burdens not Demonstrated
The opinion says:
@While a number of witnesses refer
red to the burdens TO the carriers of