Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-06-30
!. c. c. REFUSES
RATE INCREASES
ASKED BY ROADS
Proposed Is Per Cent Ad-
vance Suspended Until
October 2S.
NO EMERGENCY EXISTS
TO JUSTIFY APPROVAL
Gloomy Forecasts Of Jeopardized
Incomes Not Borne Out
by Figures.
CERTAIN RELIEF is GRANTED
Eastern Lines Allowed Higher Tar
ms on Class Rates, and
Southern on Coal
mo EMERGENCY EXISTS
TO JUSTIFY APPROVAL
CERTAIN RELIEF is GRANTED
Eastern Lines Allowed Higher Tar
tns on Glass Rates, and
Southern on Coal.
tBy Associated Press

tBy Associated PressI
WASHINGTON. June 2o.-The Inter
state Commerce Commission to-day de-
MED the plea of the railroads Of the
Unitsd States for a horizontal increase
of is per cent in freight rates.
In its decision the commission ind-
Gated its Willingness to Increase class
rates In the Eastern district approx
tnnately II per cent. Since about one
fourth OF the freight handled is moved
under class rates. the decision virtually
allows the Eastern lines about 4 per
cent increase in gross freight revenue.
Increases sought I'm rates OH coal. COX ,
and iron ore will be granted. In the
Southern district an increase of IL
Per cent on coal. with Il maximum Of
Id cents ton. was permitted.
The commission found. as result Of
extended hearings. that the 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 prohtcd
by the mobilization OF troops.
The commission suspended the pro-
posed tariffs until October IS, hut II
Indicated that no rehcarinG of the ease
VIII be of value at this time. and sug-
Eested cancellation of the tariffs
The comm issio finds that the gloomy
forecasts OF jeopardized incomes seen
bX railroad officials early in 1917 have
not been borns out by the figures avail
abfe'forelater months. The proceedings
were brought in March. when returns
from February were just being made
February was one of the worst months
in railroad history.
INCREASING REVENUES
IN SUBSEQUENT MONTHS
The subsequent months have shown
increasing revenues. while expenses
have. in many cases. failed TO mount
to the extent the carriers official.
feared.
The decision points out that the car
riers' comparisons have been largely
with those of 1916. which was the
7 banner year in railroad earnings, and
add that the 1917 income might be
considerably diminished without neces-
sarily indicating danger point in
earnings
Commissioner Harlan. in a concur
ring statement. declared that should
the next few months show that the
railroad mems fears were we'll found
ed, the commission would be ready to
grant relief. He also made plea for
better equipment and service.
Commissioner Meyer. dissenting in
part. disagreed with the commissions
holding that an emergency exists for
Eastern roads OF such character as to
,make 1t Imperative to authorize even
kla to- ,to.
the majority. He stated that there is
not proof that the returns of the car
riers' OF the East for this year may
not be more favorable than the net
returns for all but small number Of
years In their entire history.
Commissioner McChord, also dissent
Ing. urged that the commission report
to Congress the essential facts dis
closed and ask than an investigation
be made to determine whether prices
demanded Of the carriers for fuel and
supplies are reasonable under present
conditions. He also intimated that gov
ernment control of these commodities
might afford relief.
RAISES IN CLASS RATES
FORMALLY AUTHORIZED
THE commission authorizes the fol-
lowing raises in class rates:
I For points north Of the Ohio. east
Of the Mississippi-frst class. from
1873 to 90; second class. from 6S.3 to
79;}third class, from 52.5 to 60; fourth
class, from 36.s to AZ: fifth class. from
S15f.25 to 36; sixth class. from 1906 to
Y30 cents per 100 pounds. The COM
mission found 1t general that the ef-
Z tects of the Adamson eight-hour basic
day and Of the increased cost of fuel
supplies and materials had not affected
the Southern and Western carriers as
greatly as it affected the Eastern car
riers.
The decision. in part. follows:
"On1y a most urgent and eXtraordi-
nary situation would justify tariffs car
4 rying large percentage increase to
become effective. This record does not
disclose the existence of a situation
requiring so heroic a remedy.
Tho emergency which the carriers
believed existed when these proceed
ings were initiated was attributed by
some primarily to the war in Europe.
as"It has not been shown that military
transportation has bee en- in the past. or
I isslikely to be in the future, a financial
burden to the carriers.
tOn the contrary certain facts were
referred to which indicated that the
transportation of troops has been more
lremunerative during certain mobiliza-
tions in the past than ordinary passen-
ger transportation.
AN examination Of the operating re-
suits of individual carriers shows that
certain of them have lacked prosperity,
while others have been affiuent.