Middletown transcript. [volume] (Middletown, Del.) 1868-current, 1917-07-07
RAILROADS GET
FEW ADVANCES
!. c. c. Declares No Emergency
Exists Now.
HIGHER COAL RATE IN SOUTH
Eastern Lines Given Increase-Class-
Rate Advance Estimated At 4
Per Cent. Of Gross
Freight Revenue.

Washington. - The Interstate Com
merce Commission denied the plea of
the railroads of the United States for
a horizontal increase 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
mate:y IA per cent. Since about one
fourth Of the freight handled is moved
under class rates, the decision virtual
Nv allows the Eastern lines about 4 Per
cent. increase in gross freight reve-
nue.. Increases sought in rates on
coal. coke and iron ore will be granted.
Thinks Resources Ample.
The commission found, as result Of
extended hearings, that the carriers
generally show a substantial and in
creasing financial prosperity, and that
they have ample resources with which
to conduct transportation.
Little sympathy was given the afgH
ments of the roads that they were vic
tins of war prices, the commission
holding that the carriers have profted
by the mobilization of troops.
The commission suspended the pro-
posed tariffs until October %, but it
indicated that no rehearing of the case
would 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
in 1917, have not been borne out by
the figures available for later months.
The proceedings were brought in
March, when the returns from Febru-
airy 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 many cases, failed
to mount to the extent the carriers
officials feared.
The decision points out that the car
riers' 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.
Commissioner Harlan in a concur
ring 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 plea for
better equipment and service.
Commissioner Meyer, dissenting in
part, disagreed with the commissions
holding that no 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 was no proof that the re-
turns 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 investiga-
zion be made to determine whether
prices demanded of the carriers for
fuel and supplies are reasonable under
present conditions.
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 90; sec
ond class, from 6S3 to 70; third class
from 52.5 to 60; fourth class, from
26s to AZ; fifth class, 1925 to SO, and
sixth class, 1858 to 80 cents per hun
dred pounds.
The commission found in general
that the effects of the Adamson 8-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 affected the
Eastern carriers.