Arizona republican., 1917-06-30

Tn the eastern districts increased rates have recently been permitted to become effective generally on bitumin- ous 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
 In the southern district the proposed increased rates on coal are on the basis of fifteen per cent with a maximum of 15 cents ton. These tariffs we shall permit to become effective
 Tn the western district the increases are based upon 15 per cent with a mini mum of 15 cents per ton. These tariffs will be suspended but the western car riers may, if they so select, file new tariffs carrying increases in rates on coal and coke not exceeding in any case 15 cents per ton.
 All of the tariffs included in this proceeding of the western lines will be suspended. All of the tariffs included in this proceedings of the southern car riers will be suspended excepting those applying on coal, coke and iron ore"
 The commission declared its willing ness to meet any sitaution which may arise in case the fears of the railroads of heavily decreased income are req lized.
 The commission declares it's 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 firts class rates down to six per cent on sixth class rates will be permitted.
 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 two or three per cent increase in gross revenue for east ern carriers.
 The commission authorized the roads to file tariffs increasing the existing joint rates between rail and water car riers to a1evel not higher than the all- rail rates between the same points" May Increase Class Rates In it's decision the commission indi- cated its willingness to increase class rates in the eastern district approxi- mately fourteen per cent. Since about one fourth of the freight handled is moved under class rates, the decision virtually allows the eastern lines about four per cent increase in gross freight revenue. Increases sought in rates on i coal, coke and iron ore will be granted. | The commission found, as a result of ! extended hearings, that the carriers generally show a substantial and in 1 creasing financial prosperity and that l they have ample resources with which 1 to conduct transportation.
 l Little sympathy was given the argu- ments of the roads that they were vic
 tins of war prices, the commission I holding that the carriers have profited l by the mobilization of troops. i The commission suspended the pro- posed tariffs until October 2S, but it ] indicated that no rehearing of the case will be of value at this time and sug
 gested cancellation of the tariffs. l The commission finds that the , gloomy forecasts of jeopardized in-
 comes seen by railroad officials early ] in 1917 have not been borne out by the figures available for later months. 1 The proceedings were brought in
 March, when the returns from Feb
 ruary were just being made. Feb ruary was one of the worst months 1 in railroad history. The subsequent months have shown increasing reve- l nues, while expenses have, in many
 cases, failed to mount to the extent i the carriers officials feared.
 1 The decision points out that the carriers comparisons have been made | largely with those of 1916 which was the banner year in railroad earnings.
 and adds that the 1917 income might be considerably diminished without necessarily indicating a danger point l in earnings.
 Commissioner Harlan in a con- curing statement declared that should the next few months show that the railroad mems fears were
 well founded, the commission would be ready to grant relief. He also made a plea for better equipment and service.
 I Commissioner Meyer, dissenting in part, disagreed with the commission s
 holding that an emergency exists , (Continued on Page Two)