Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-06-30
Certain Advances, However,,
Are Granted by Interstate
Commerce Commission f.
fective at Once.
NO EMERGENCY Is
EXISTING JUST NOW
Fifteen Cents per Ton May Be
Added in Southern District
on Coal, Coke and on iron
Ore.


Washington. June 29.--The Inter-
state Commerce commission today de-
nied the plea of the railroads of the
| United States for Il horizontal in
crease of Is per cent in freight rates
| In its decision the commission indi.
Gated its Willingness to increase class
| rates In the eastern district approx
mately Ia per cent. Since about one
| fourth of the freight handled is moved
under class rates, the decision virtu-
| ally allows the eastern lines about 4
| per cent increase In gross freight rev.
enue. Increase sought in rates on
coal, coke and iron ore win be
granted.
The commission found, as a re-
suit of extended hearings, that the
carriers generally snow a substantial
and increasing financial prosperity
and that they have ample resources
with which to conduct transportation.
Little sympathy was given the ar
guments of the roads that they were
victims of war prices, the commission
holding that the carriers have profit
ed by the mobilization of troops
No Rchearing LIKELY.
The commission suspended the pro-
posed tariffs until October 2S, but 1t
case will be of value at this time and
suggested cancellation of the tariffs.
The commission finds that the
gloomy forecasts OF jeopardized in
comes seen by railroad officials early
i'll 1917 have not been borne out by
the figures available for later months
| The proceedings were brought in
| March, when the returns from Febru-
ary were just being made. February
was one of the worst months in rail-
road history. The subsequent months
have shown increasing revenues, while
expenses have, in may cases, failed to
mount to the extent the carriers Off
cials feared.
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
in earnings.
Relief When Needed.
Commissioner Harlan, in a concur
ring statement, declared that should
the next few months show that the
! railroad mems fears We're well found
ed. the commission would be ready to
u
better equipment ard service.
Commissioner Meyer, dissenting in
part, disagreed with the commissions
holding that an emergency exists for
eastern railroads of such character as
to make it imperative to authorize
even the increased class rates sane
toned by the majority. He stated
that there is no proof that the returns
of the carriers of the east for this
year may not be more favorable than
the net returns for all but a small
number of years in their entire his
tory.
Commissioner McChord, also dis
senting, urged that the commission re-
port to congress the essential facts
disclosed and ask that an investigation
be made to determine whether prices
demanded of the carriers for fuel and
supplies are reasonable under pres
ent conditions. He also ntimated
that government control of these
commodities might afford relief.
Raises Authorized.
The commission authorized the fol-
lowing raises in class rates for points
north of the Ohio, east of the Missis-
sippi:
First class, from 1873 to 80; second
class, from 6S3 to 10: third class,
from 52.5 to 60; fourth class, from
36.8 to AZ; fifth class, from 31.25 to
SO; sixth class, from 1858 to 80 cents
per hundred pounds.
The commission found in general
that the effects of the Adamson eight
hour basic day and of the increased
cost of fuel, supplies and materials
had not affected the southern and
western carriers as greatly as it af-
fected the eastern carriers.
Commissions Findings.
The commission then announced
the decision, saying:
I'VE are led to the conclusion that
no emergency exists as to the western
and southern carriers which would
justify permitting a general increase
in the rates to become effective.
'In the eastern districts increased
rates have recently been permitted to
become effective generally on bitumi-
nous 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 pro-
posed increased rates on coal are on
the basis of Is cents with the maxi
mum of 5 cents a ton. These tariffs
We shall permit to become effective.
"In the western district the increas-
es are based upon Is per cent with
a minimum of 15 cents per ton. These
tariffs will be suspended but the west.
ern carriers may, IL they SO elect, file
new tariffs carrying increases in rates
en- coal and coke not exceeding in any
case s cents per ton.
"All of the tariffs included in this
proceeding of the western lines will
be suspended All OF the tariffs i'm