New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-30
Railroad Officials
Here Bitter Over
The Rate Decision
Hope for Increases Later;
$2O,OOO,OOO Added to
Their Revenue

officials Of Eastern railroads yester-
day expressed keen disappointment
over the decision Of the Interstate
Commerce Commission not 10 grant a
horizontal increase Of 10 per cent IN
freight rates The Eastern railroads
showed a loss for the first four months
Of 1917 from the Same period in 1915,
and thought they made q much strong
or case than did the Western and
Southern roads, which showed gain
for the same period.
The increase granted the Easter"
roads on coal coke and iron ore, 1t
has been estimated. will mean about
800 900 900 additional revenue year.
The increase of from 5 10 10 per cent
in class freight rates recommended VIII
add between S30.00O,0OO and Si5.OOo,-
900 TO the annual revenues, IT IS ing
ured. ,
Railroad officials were not inclined TO
agree that this will come anywhere
near comDcnSating them for the sou,
600 900 additional annual expense which
Congress forced upon them by the
eight-hour law. They believe that the
purpose Of suspending the rates until
October %, 1917, is that the commits
sion wants to have conclusive proof of
lust what effect the war will have on
the railroads. They point out that
meanwhile they will be forced greatly
to increase their expenses IN meeting
the demands of the war and that their
securities will not have a ready sale in
view Of the disheartening news from
Washington.
THE commission says il will take up
the matter again in October said l..
+. Loree. president of the Delaware &
Hudson. but the only diagnosis the
commission will be able to make then
will be a post norton. and post NOR
TEN is of little benefit TO the patient
Going into his reasons for regard
ing the decision of the commission as
not meeting the needs Of the railroads,
Mr.. Loree said:
lowing 10 the war, the country Is m
a condition of unexampled prosper
ity. Labor was never getting such
good wages. The products of the farm
never brought better prices Mining
industries coal, iron ore. lead, zinc,
copper industries AL are very pros
porous Many other Industries are
prosperous.
About one-third Of the active pro-
ducing capital Of the United States is
invested in transportation. traction,
electric light. and power. gas, water
and express companies. and other pub
lie utilities. These are all gasping for
breath. There must be- some eXplana-
tion for this singularity. The i'm
portance Of these activities to the
safety of the country warrant serious
consideration as 20 the reason"
". II. Truesdale. president OF the
Delaware. Lackawanna G Western Rail
road. said he believed the decision
would be Il cause of real disappolnt-
ment 10 railroad men all over the
country.
IL. myself. am keenly disappointed. -
he said. 81 believed that the roads had
made out very strong case, and that
the commission would be convinced
that their cause was just
The granting of the full 10 per cent
increase would have meant TO all the
roads an annual increase in revenue
Of 500. 100000. Of which> tho Eastern
roads would have received about $780,
O00.uop. IL was estimated by the rail
road operator that the additional ex-
pensos for 1917 over 1915 would be
about sos. 100000 They c~zued trat
:hc earnings of $l.ooo.n0o.D"o in 1916
enabled The ioaGs OF the country 20
pay dividends ~ lttle more than >
per cent on the Investment. ard argued
that IL this amount were cut by the
S525. 100000 additional expenses with
out recompense the securities Of the
roads would be in precarious condi-
.fou