Omaha daily bee., 1917-06-30
RAISE ASKED
BY ROADS IS
With H Ell D
Interstate Commerce Commits.
sion Puts OF Until October
28 Freight Increase De-
manded by Railways.

my Associated Fressb
Washington, June 29.--The Inter
state Commerce Commission today
suspended until October 2S, 1917, the
proposed general Is per cent increase
in railroad freight rates.
Commissioner McChord dissented
and Commissioner Meyer dissented n
part. Commissioner McChord said:
"The issue is in reality rather one
OF governmental policy than a ques.
tion, whether the rates sought are
reasonable for the service of trans
portation.'
The commission then announced
the decision saying:
1--WE are led to the conclusion that
no condition of emergency exists as
to the western and southern carriers
which would justify permitting gen.
eral increase in their rates to become
effective.
Raise Coal Rate.
an the eastern districts increased
rates have recently been permitted to
become effective generally on btu
minous coal, coke and iron ore. We
think that similar increases may prop
erly be permitted in the southern dis
trict on coal, coke and iron ore and in
the western district on coal and coke,
I'm the southern district the pro-
posed increase rates on coal are on
the basis of IS per cent with a max
imum of IS cents a ton. These tariffs
we shall permit to become effective.
"ln the western district the in
creases are based upon Is per cent
with maximum Of Is cents per ton.
These tariffs will be suspended, but
the western carriers may, if they so
elect, file new tariffs carrying in
creases i'll rates on coal and coke not
exceeding i'll any case IS cents per
ton, 5r -. q. 7. i, s.s,, ..,t,
e''lS Suspend Western Tariffs. N@
"All of the tariffs included in this
proceeding OF the western lines will
be suspended. All of the tariffs in
cluded in this proceedings of the
southern carriers will be suspended,
excepting those applying on coal,
coke and ron ore"
The commission declared its will
inguess to meet any situation which
may arise in case the fears of the
railroads of heavily decreased incomes
are realized.
The commission declares its will
ingness to increase class rates between
New York and Chicago, provided the
carriers preserve established relations
between ports and localities. Amounts
ranging from | | per cent on first class
rates down to 6 per cent on sixth
class rates will be permitted.
Wheat Increases Mean.
Approximately-25 per cent of the
freight tonnage in eastern territory
moves under class rates and the in
creases, officials estimated, would
amount to perhaps 2 or 3 per cent
increase in gross revenue for eastern
carriers.
The commission authorized roads to
file tariffs increasing existing joint
rates betty zen rail and water carriers
to level not higher than the all-rail
rates between the same points"
Result of Strike.
The rate advance cases were born
of the threatened nationwide railroad
workers strike in the summer of 1916.
The first mention of an advance in
rates was made in connection with the
passage of the Adamson law which
averted the impending strike.
Jnaury T. 1917, found the railroads
in position unparalleled in their his
tory. They were hauling freight and
passengers at the top Of their driving
power, working their plants at speed
and capacity exceeding what experts
previously had believed the maximum.
So much freight had been poured in
that they could not handle it all; rails,
sindings, terminals, yards, were con-
gested with burden of loaded cars.
congestion ensued, espe-
cially at eastern seaports where ocean,
carrying vessels were not sufficiently
plentiful, and an acute car shortage
resulted.
Money was pouring into the rail-
roads too, faster, than ever before.
Receipts for the twelve months nearly
reached the $4,000,000,000 mark; net
revenues approximated $l,000,000,000,
1t seemed as if the railroads were at
the dawn of a new days prosperity.
Then another factor, more potent
than the Adamson law and more M