The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-06-30
JUMP NEARLY 10 P. c.
Southern and Western Lines
Get More on Coal, Coke
and Iron.
MANAGERS DISAPPOINTED
A. P. Thorn Says Most Existing
Tariffs Will Continue
Until Oct. g..

wAsHINoroN, June 2t.--The railroads
Of the country a. q whole to-day won
. partial victory In their application for
q Is per cent. horisontal Increase In
freight rates. The Interstate Commerce
Commission In its decision to-day or
dered al the advance tariffs flied on
this basis cancelled.
But In the case Of the Eastern roads
It has ordered an increase In class rates.
an Increase in soft coal. coke and iron
ore rates and an Increase in the rail and
water rates. It was estimated tonight
that for the Eastern carriers this may
be the equivalent Of nearly a 10 Der
cent raise The increase allowed in
class rates ID virtually is per cent. Il
affects almost half the trafic OF these
roads.
The commission justifes these in
creases for the Eastern roads on the
grounds that the conditions confrontink
them are substantially different from
those faced by the other roads, that the
war has compelled them to haul many
empty cars and that new legislation
covering the movement Of freight cars
will cause additional expenses to fall on
them. It 10 also found their operating
returns have been at variance In recent
months with the returns of the other
railroads Of the country.
Coal Rates Raised for All.
Increases on coal. coke and iron ore
for the Southern railroads and on coal
and coke for the Western roads, which
amount to Is Per cent on these com
modities, are allowed, This u All these
roads get out Of the decision.
the reAsons advanced by
the commission for refusing the general
nat IL per cent, increase which the rail-
reedt hnd asked largely on the ground
OF tnoressed eapenses. particularly labor
fuel and material. are as follows:
That while there has been an increas<
means certain that these will have an
unfavorable effect on earnings. The
commission indicates It's purpose tc
study closely the monthly reports OF
earnings and says that II the fears OF
the carriers are realised or their realiza.
ton becomes imminent It win be ready
to meet the situation.
That the operating results for Febru.
ary. stressed by many Of the carriers
were due to Unusual causes and have moi
continued.
That the transportation of troops and
the war In general Is not likely TO be q
financial burden to the roads.
That the refusal to grant the increase
asked will neither facilitate nor retarc
the prosecution Of the war.
Thai 1915 was, on the whole, more
profitable for the roads than any pre-.
ceding year and that present earninsi
Justify the confidence that In 1917 earn.
ings will be greater than since 1911.
That study OF maintenance charges
In which the rising costs were supposet
10 be reflected shows no undue outlay
for these purposes In 1915.
That the Eastern roads alone havt
shown since last fall . reversal OF thu
able prior to that time.
Two Oppose Eastern Grants.
"Only q most urgent and extraordi
nary situation says the commission
would Justify permitting tariffs carry
ing a large percentage increase to be
come effective. This record does no
disclose the existence Of a situation re
quiring 90 heroic q remedy"
In so far as II rejected the application
for q horizontal increase In rates for al
the roads the commission was unani
nous Commissioners Meyer and Nc
Chord diesented. however. opposing tn
increases granted tsse Eastern roads
Commissioner Harlan concurred In tn
decision but did not regard the relic
grant as adequate, holding that tn
Eastern roads should have a full Is pc
cent. increase and the Western an
Southern lines some general increase.
II should think the effect Of the de
cision upon the railroads would be keen
ly disappointing" said A. p. ThouA coun
sci for the railroad executives commit
tee of the Council for National Defence
have talked with representatives o
the roads. and / know they were SINGER
in their contention that there was tn
greatest necessity for the increase asked
IL shoulc say the general effect vii
be to extend existing rates until Octo
Der IS, except rates on bituminous Goa
coke and iron In the East and South
east, and pending that date to watc
developments and ascertain whether tn
increase seems justified. l suppos
further hearings are contemplated"
A railroad authority tonight, after
careful study of the decision. venture
the opinion that the Eastern road
would find that they had Jared very wei
Partial Text Of Decision.
The decision in part follows:
From a technical standpoint tn
question at Issue ID that OF suspensio
Of the proposed Increased rates.
substance the Issue is the reasonable
ness OF those rates. Inasmuc
as u general percentage increase Ia 9
undcsira Bile because OF It's serious ei
feet upon commercial conditions an
established relationship II would seei
appropriate for the carriers to cane,
the tariffs which we suspend herein. an
permission k hereby accorded them
do so.
THE carriers were clearly within the
rights in bringing these matters to OF
attention az they aid. We do not queI
tion their good faith In anything the
have done In this connection.
Their action Is another evidence
the fsrsightedness and the sense or r.
sponsibility IN the performance OF the
duties toward the public, with which
many OF their officials are managing ar
Cowttnucd on FOvrfh Pogo.