The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-06-30
DENY PLEA FOR
AN INCREASE IN
FREIGHT RATES
Interstate Commerce Com
mission Rules Against
Railroads in Case
HIGHER RATES ARE
NOT NECESSARY
Class Rates in Eastern Dis
drict May be Raised
IL Per Cent
tRy Associated Press.>

i Washington, June 30.--The inter-
state commerce commission yesterday
denied the plea of the railroads OF
the United States for a horizontal in
crease Of Is per cent in freight rates.
! In it's decision the committee indi-
Gated its willingness to increase class
rates in the eastern district approx
mately IA per cent. Since about one
fourth of the freight handled is NOV
ed under class rates, the decision vir-
/. tually allows the eastern lines about
4 per cent increase in gross freight
revenue. Increases sought in rates on
coal, coke and iron ore will be granted
/ The commission found. as a result
Of extended hearings that tho carriers
generally show a substantial and in
creasing financial prosperity and that
they have ample resources with which
to conduct transportation.
/ Little sympathy was given the ar
guments of the roads that they were
victims Of war prices, the commission
holding that the carriers have profited
by the mobilization of troops.
The commission suspended the pro-
posed tariffs until Oct. %, but 1t indi-
Gated that no. rehearing of the case
will be of value at this time and sug-
, gested cancellation of the tariffs.
Fears Not Realized.
The. commission finds that the
gloomy forecasts Of jeopardized in
comes seen by railroad officials early
in 1917 have not been borne out by the
figures available for later months. The
proceedings were brought in March
when the returns for February were
just being made. February was one
of the worst months in railroad his
tory. The subsequent months have
shown increasing revenues, while ex-
penses have in many cases, failed to
mount to the extent the carriers
officials feared.
The decision in part follows:
"Only a most urgent and extraor-
binary situation would justify tariffs
carrying a large percentage increase
to become effective. This record does
not disclose the existence of a situa-
ton requiring so heroic a remedy.
From a technical standpoint the
question at issue is that Of the sus-
pension of the proposed increased
rates. In substance the issue is the
reasonableness of those rates. mas
much as a general percentage increase
is so undesirable because of its seri-
Gus affect upon commercial conditions
and established relationships, II would
seem appropriate for the carriers to
cancel the tariffs which we suspend
l6TSln, ana pSfTutSSfOn Is hereby &c
corded them to do so.
'The carriers were clearly within
their rights in bringing these matters
to our attention as they did. We do not
question their good faith in anything
they have done in this connection.
Their action is another evidence of
the farsightedness and the sense of
responsibility in the performance of
their duties toward the public.
THE things whichg they believed
months ago would happen have not
happened. We do not believe that 1t
would be in the interests of any one to
now resume hearings In detail as to
the suspended tariffs.
Will Protect Roads.
I'VE shall keep in close touch with
the operating results for the future,
and If it shall develop that the fears
which have prompted the carriers are
realized or that their realization is
we shall be ready to meet
that situation by such modification or
amplification Of the conclusions and
orders herein reached and entered as
are shown to be justified.
First representations were made on
behalf of the eastern carriers on
March %. The operating results for
February, 1917, may we'll have startled
the railway executives because, gener-
ally speaking they were, for the east
ern district especially, extremely un-
favorable. AS a result of the conges-
ton Of traffic on the eastern roads
and the various operating difficulties
arising out of the shortage OF cars,
the movements of the empty cars
westward reached extraordinary pro-
portions over some lines.
Because of the severe weather
the expenses Of the move
ment were greater than usual. Finally,
increased wages directly and Indirect
ly resulting from legislation first ap-
peared on the operating accounts OF
number of carriers for February