New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-30

B inherent tendency ana OUTLOOK.
Common alike TO the three districts
is the probable increase in the gross
operative revenue. Thus. the first four
months disclose average operating
revenue per mile of s43SS i'm the
Southern district. a. against $3.50 for
tire corresponding period in 1916. and
SS.'Oo as against s3..sS in the Western
district.
But in both the Southern and West
ern districts the first four months o.
the current calendar year presage not
only an increase in the average operst-
ing income per mile of road. Sl.222. a.
against S1.lsi for the first four months
OF 1916 in the Southern district. and
$3.50 as against ss77 for the roads in
the Western district, but in both an in
crease in the ratio of operating income
10 average investment. 80.
Increase Not Justified
I'VE are led to the conclusion that
no condition Of emergency exists as
10 the Western and Southern carriers
which would justify permitting a gen
eIsl increase IN their rates 20 become
effective. In the Eastern district in
creased rates have recently been ner-
mltted to become effective generally
on bltumlnOus coal. coke and iron ore.
We think that similar increases may
properly he permitted in the Southern
district OF coal. coke and iron ore and
IN the Western district on coal and
coke. This will preserve rate relation
ships between the several districts.
I'm the Southern district the pro-
posed increased rates on coal arc on
the basis Of II per cent. with a maxi
mum of IL cents ton. These tariffs
we shall permit 10 become effective.
In the Western district tho increases
m nimum Of - ceatS ton. These
tariffs will DO suspended. but the Nest-
crn carriers may. If they 20 elect. ME
new tariffs carrying increases ~ rates
on coal and coke, not exceeding IN any
case 10 cents ton. All Of the tariffs
included in this proceeding OF the
Western lines will be suspended. All
of the tariffs included in this proceed
ing Of the Southern carriers will be
suspended. excepting those applying on
coal. coke and iron ore.
"In connection with our investigation
as to rates on bituminoUs coal certain
proposed Increased rates on bituminous
coal were suspended in investigation
and Suspension Docket No. 11i Sub
sequent to the institution OF that pro
ceeding conditions surrounding the pro-
duction, TRANSFORMATION and sale OF
hituminous coal became so unusual that
tho principal protestants before US vol
unfairly conceded that the conditions
were abnormal and that the rates might
appropriately be increased. some Of
them, however. contendlng that the eN-
isting relationships Of rates from Ger
tain coal producing districts should be
preserved.
Pending further consideration Of
that proceeding and Of the instant case.
the carriers parties to the tariffs re-
ferred to voluntarily postponed the cf-
fective date thereof 10 August /. Since
that time increases have been filed to
become effective July 70 destinations
intermediate to those covered by the
tariffs of which the carriers postponed
the effective date 10 August ]. IL is
therefore consistent and appropriate
that those carriers be permitted, on
short notice, 10 advance the effective
dates OF such tariffs, and they are
hereby authorized 10 do So
For reasons indicated in this report
VIC shall suspend all Of the tariffs be
fore US in this proceeding Of the East
ern carriers excepting those applying
on iron ore.
"As has been Indicated however. the
conditions confronting the Eastern car
riers are substantially different from
those confronting the Southern and
Western carriers. and We are persuaded
that they are entitled 70 increased rev.
enue beyond and above that which they
are securing and will secure from the
increased rates on btumnous coal.
coke and iron ore.
by recent act Of Congress We have
been given jurisdiction over the move
ment, distribution. exchange. inter-
change and return Of freight cars. The
obvious intent Of this legislation is
that cars shall be so used by the car
riers as 10 secure tho performance Of
the largest possible amount Of trans
portatlon in needed and equitable ways.
shortly following the outbreak Of
the European war an unprecedontcdlv
heavy movement OF freight 20 the
Eastern district began. and. M dis
trict in large part has been badly con
gested ever since. Hopeless conges-
ton has been avoided only By a prac-
.ically continuous condition Of oper-
ating under embargoes. The result
has been that while roads in other
sections have generally been short o.
cars and in possession Of less cars
than they owned the carriers in the
Eastern district have been in posses
sion Of. substantially more than their
ownership of cars.
AS we have indicated. percentage
increases. especially where the per
centage * substantial. cannot fail 20
disrupt competitive commercial rela-
tionships. general increase In class
rates, which preserves existing rela-
tionship. distributes itself more gen
orally and more equitably than would
general increases on commodity
rates.
among the Eastern carrier, tho @
located in New England appear 10 pre-
sent the most serious condition. They
are not carriers OF large volumes o.
heavy loading commodities that move
under commodity rates. I. is Tot pos
sible 20 estimate with confidence and
accuracy tho amount OF additional revc-
nue that viii accrue from mere scd
class rates, but wc conclude
that tho Eastern carrier. should be per
mItted TO increase their c,ees rates be
tween New York and Chicago and 20 cor.
respondingly increase their other class
rates applying ntraterritorialiy be-
tween points in official classification
territory. observing the established re-
lationship between ports and localities.
Such tariffs may be made effective upon
not less than five days notice.
Commissioner Harlan. in his con
curing opinion, declared for an i'm
provement in present transportation
conditions.
1T will suffice to say" he said. that
while The strains Of the war have much
20 do with tho present transportation
Conditions, the one outstanding TACT