Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-06-30

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creased revenue beyond and above that
which they are securing, and will So
cure. from the increased rates on
bituminous coal. coke and iron ore"
Commissioner McChord dissented, and
Commissioner Meyer dissentcd In part
Commissioner McChord said: THE
issue is in reality rather one OF gov
ernmental policy than question
| whether the rates sought are reason
able for the service of transportation"
The commission. in announcing the
decision. said:
we are led to the conclusion that
no condition Of emergency exists as
to the Western and Southern carriers
which would justify permitting a gen.
eral increase in their rates to become
effective
In 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
properly be permitted in the Southern
district on coal. coke and iron ore.
and in the Western district on coal
and coke.
PERMIT HIGHER TARIFFS
on COAL IN SOUTH
I'm the Southern district the pro-
posed increased rates on coal are on
the basis of Is per cent, with a maxi
mum of Is cents a ton. These tariffs
we shall permit TO become effective.
I'm the Western district the in
crcases are based upon Is per cent,
with minimum of is cents per ton.
These tariffs will he suspended. hut
the Western carriers may. II they so
elect, file new tariffs carrying increases
in rates on coal and coke not exceed
ing in any case l5 cents per ton.
"All of the tariffs included in this
proceeding OF the Western lines will
be suspended. All OF the tariffs in
cludcd in this proceeding OF the
Southern carriers will be suspended,
excepting those applying on coal. coke
and iron ore
The commission in its decision de-
clared its willingness TO meet any sit
uation which may arise in case the
fear OF the railroads Of heavily do
creased incomes are realized
The commission authorized roads TO
nile tariffs increasing existing join,
| rates between rail and water carriers
TO n level not higher than the all-rail
. rates between the same points"
The commission declared its willing
ness to increase class rates between
New York and Chicago provided the
carriers preserve established relation
ship between ports and localities
amounts ranging from II per cent on
. hrst-c!ass rates down to per cent on
sixth class rates will be permitted
approximately % per cent OF the
treisht tonnage in the Eastern terri
tory moves under class rates, and the
increases. officials estimated. would
amount to perhaps a or 3 per cent
increase in gross revenue for Eastern
carriers
norm OF THREATEcED
NATioN--"1DE STRIKE
The rate advance cases uere born n,
the threatened nationwide railroad
workers strike In the summer of 1916
ne hrst mention OF an advance IN
rates was made in connection with tn.
passage Of the Adamson Law. which
a"erted the impending strike
January !. 1917. found the railroads
IN position unparalleled In their his.
tory They we're hauling freight and
passengers al the top OF their driving
power. working their plants at speed
ana capacity exceeding what experts
previously had believed the maximum
so much freight had been poured in
that they could not handle II all: rails
sidings. terminals. yards were con
Eested with a burden OF loaded cars
Tremendous congestion ensued esne.
cially at Eastern seaports where OCEAN.
carrying vessels we're not sufficiently
plentiful, and an acute car shortace
resulted
Money was pouring In to the rail.
roads. too. faster than ever before
Receipts for the twelve months nearly
reached the $4,000. 10000 mark; ne,
revenues Appropriated sl.ooooeo.o 90,
IT seemed as if the railroads were a,
the dawn Of new days prosperitv
| Then another factor. more potent thar
the Adamson Law and more unexpected
than the threatened strike, came into
the situation 1t was the rising cost OF
necessities.
Coal prices rose-in some cases more
than 100 per cent. Steel rails. steel
cars. structural steel everything OF
iron and steel that entered into the
operation of ralroads--rose in price.
Oil. used by some Western roads as
fuel, went up; supplies and equipmen
of all sorts mounted to new high price
levels. Cnskilled labor threatened Ia
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 cay OF prosperity
faded
INCREASE IN COSTS MORE
THAN GAIN IN BUSINESS
| In it's place there soon came time
when the roads. though taking in more
money than ever before. said they were
/ not receiving as large a net return
( as they had received twelve months
| before. The increase in operating
costs. they commended. grew out of
all proportion to the increased bust
ness. Instead of making money, the
| roads claimed they were on the verge
| Of losing millions at a day when they
! were operating at maximum capacity
| The new moneys paid out under the
! Adamson Law were but a small per-
centage, the railroads claimed, of the
totals paid out in higher operating
| costs. general movement looking
toward relief was begun.
Within forty-eight hours after the
Supreme Court upheld the Adamson
law the machinery for rata IL, .ro, a