Arizona republican., 1917-07-02
RATE ADVANCE CASE
IS OUTGROWTH Of
THREATENED STRIKE
Republican A. p. Leased wire1


rs, 1917. by the Interstate Commerce
commission of the proposed general
fifteen per cent increase in railroad
freight rates, interest attaches to the
situa ton confronted by the railroads
leading up to their application for the
proposed increase.
The rate advance cases We're born
of the threatened nation wide railroad
workers strike in the summer of
1916 The first mention of an ad-
vance in rates was made in connec-
ton with the passage of the Adam
son law which averted the impending
strike.
January l. 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, sidings, terminals. yards, were
congested with a burden of loaded
cars. Tremendous congestion ensued,
especially at eastern seaports where
ocean carrying vessels were not suf-
ficiently plentiful, and an acute car
shortage resulted
Money was pouring in to the rail
roads too, faster, than ever before.
Receipts for the twelve months nearly
reached the $4,000, 100000 mark: net
revenues approximated $1,000 900, 600
1t seemed as if the railroads We're at
the dawn of a new days prosperity.
Then another factor, more potent
than the Adamson law and more I'M
expected than the threatened strike,
came into the situation. 1t was the
rising cost of necessities.
Coal prices rose--in some cases
more than 10 per cent. Steel rails,
steel cars, structural steel, everything
of iron and steel that entered into the
operation of railroads went up in
price Oil, used by some western roads
as fuel, went up supplies and equip
ment of all sorts mounted to new
high price levels. Unskilled labor
th' eatened to go into other markets
where pay was better and the roads
claimed they had to advance wages in
order to keep men. Operating costs
continued to go up. The vision of a
day of prosperity faded
In its place there soon same a time
when the roads, though taking in more
money than ever before, said they We're
not receiving as large a net return as
they had received twelve months be-
fore. The increase in operating costs,
they cOntended grew out of all proper
ton to the increased business. Instead
of making money, the roads claimed
they were on the verge of losing mil
lions at a day when they were Operat-
ing at maximum capacity. The new
moneys paid out under the Adamson
law were but small percentage the
railroads claimed. of the totals paid out
in higher operating costs a general
movement looking toward relief was
begun.
Within forty-eight hours after the
supreme court upheld the Adamson
law. the machinery for a rate increase
was put in motion. Relief the railroads
claimed, was imperatively necessary
and as time was of the essence of the
situation they sought to obtain it with
all possible speed. Dividing into three
territorial groups, the railroads sought
the interstate commerce commission S
aid in meeting their difficulties.
The eastern roads. hit harder than
those of any other section, they
claimed, were the first to act Their
representatives met quietly and infOr-
mally with the commission one night
and the proceeding of that meeting,
made public the next day by the com
mission, showed that general increase
IN rates was discussed President Rea
OF me fennsNlVann and other eXecu-
ives tod the commission that the time
Hdd c'Ile Wheh the raiiroads faced IN
TaSe' ateS OF heaNy Ilhahclai losses
FI9ceeaings OF the conference were
nafdiY puhllshed before kilograms were
received rom western railroad inter-
80 say iIis tIIer eIIlersehcy also was
meet the representatives A conference
vs. He'u WIN tle western ROADS. a
Soll - eice WIN me southern loaus Ioi-
tp"tu anu OUT 81 these ana otheT con-
I i{. grew inc 1ofInal proceedings
iOpNihs 70 seheIal advance
ne percentage OF the ADVANCE mad
not been determined upon at the first
oollisIe ., many al three groups de-
Di.'eu llldl d lIlteFn per cent advance
We u ~. IT., u ehaple lhefn 10 meet new
SoIIuI 'iohS' ms II was HaIIousiy est
e.o0 doo ~ ooo ylelu rom S9Vo'V9o'oVV to
VOop'oy9 "tIIudl eNeilue
lI.ie tne sliLpplhs interests u
IL me- d' CIllodso anu hlSue
t leI? " ilsii, me Ih'i edse men the
~ rs opeIieu neIe III way oetoIe
~ w. va te commerce COMMISSION
,.r,,rsl eIioe Waf
80 s9eiI'eu ny HuI ,,o ol attorneys
~ diIloils lnein Cillioru horne Oh
~" a" eNpelt oh idteS anu tiahspoT-
tdeIou'
Inc attitude OF the shippers was to
some extent divided. some thought, ano
80 tcstiIleo TO the commission that the
IdiiIoauS shouid nave the increase
MHiie others favored some increase
1HU otheiS cohtended that II the ran
lodus were enulled 10 any rate al
Eahce al all II was much less man thf
lA'teh per cent theN asked. me rail-