New-York tribune., 1917-06-30
Flat Increase Denied;
Eastern Lines Are
Allowed 4 P. L.
Lines Prosperous,
Commission Says
War Will Not Hurt
Railroads, but May
Benefit Them

Washington. June 20 - The Inter
.,ste Commerce Commission to-day de-
r,.d the plea Of the railroads OF the
T,,,sd states for a horizontal increase
~ Is Der cent in freight rates.
In is decision the commission iEsi-
.stod its willingness to increase class
rates in the Eastern district approx
us,slv Il per cent. Since about one
fourth of the freight handled is moved
under class rates. the decision virtu-
,uv allows the Eastern lines about
r,r cent increase in gross freight reve-
nu. Increases sought in rates on coal
rake and iron ore Will be granted
The commission found as the result
Of extended hearings. that the carriers
s,nerallc how a substantial and IN
rreasing financial prosperity, and that
,bev have ample resources with when
10 conduct transportation.
Little sympathy was given the argu-
nsn,s Of the roads chat they were VIC
tins Of war prices, the commission
holding that the carriers have proii'ed
by the mobilization Of troops.
proposed Tariffs Suspended
The commission suspended the pro
,o.sd tariffs until October 2S. but it in
dica,ed tha, no rehoaring Of The case
will be Of value at this time. and sug-
res,ed cancellation Of the tariffs.
The commission finds that the gloomy
forecasts Of jeopardized incomes' seen
by railroad officials early in 1917 nave
not been borne out by the figures avail
able for later months. The proceed
inrs we're brought IN March, when the
~e,urns from February were just being
made February was one Of the worst
months in railroad history. The subse-
ouent 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 these 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 earnlngs.
Commissioner Harlan IN concurring
abatement declal cd that should the next
few months show that the railroad
mcr's fears were well founded. the
commission would be ready 20 grant re-
lief. He also made a plea for better
equipment and service.
commissioner Never. dissenting IN
mart. disagreed with the commission :
holding .hat an emergency EXISTS ioi
Eastern railroads OF such character a.
10 make 10 imperative 20 authorize even
the increased class rates sanctioned DI
tho majority. He stated that there h
no nroof that the returns Of the car
riers Of the East for this year may no
h. moro favorable than the net return!
for an but a small number Of years u
the entire history.
NcChord Also Dissents
Commissioner McChord. also dissent
20 Congress the essential facts dis
closed and ask that an investigation
be made 90 determine whether prices
demanded OF The carriers for fuel ant
supplies are reasonable under present
conditions He also intimated that gov
eminent control Of these commodities
might afford relief.
The commission authorized the fol
lowing raises in class rates Tor points
north OF the Ohio. east OF the Missis
sppi: First class. from 1873 20 30; sec
ond class. from 58.3 70 70; third class
from 52j % 50: fourth class, from
3s.8 20 ~; ffth class, l.25 20 36; sixth
class. 26.3 90 90 cents per hundred
pounds
The commission found in genera
that the Adamson eight-hour basic day
and tho increased cost Of fuel. supplies
and materials had not affected the
Southern and Western carriers As great
iy as they affected the Eastern carriers
Part Of Text OF Decision
The decision. in part, follows:
"Only a most urgent and extraordi-
nary situation would Justify tariffs
carrying a large percentage increase
% become effective. This record does
ND[ disclose lNe existence OF h4tud'
Ton requiring 70 heroic remedy.
Prom q technical standpoint. the
quest on a, issue is that Of suspension
o. the proposed Increased rates. In
substancc the issue Is the reasonable
mesa Of those rates inasmucn
- general percentage Increase -
- undesirable bccautc of it9 eerious
eject upon commercial conditions and
established relationships, - would
seen appropriate for the carriers "a
cancel the tariffs which We suspend
herein, and permission is hereby ac-
corded them % do 80.
The carriers were clearly within
their rlghts in bringing these matters
% our attention a. they did. We do
no' question their good faith IN any
ming they have done IN this connec-
hon. Their action is another evidence
o the ightedness and the sense Of
fsrponfibility 10 The performance Of
heir duties toward the public, with
uhieh % many Of their officials are
managing and administering the affair
D ihfif respective prOpcrtiee.
The things which they believed
months ago would happen have not
happened. None of " knows what th'
istgre may develop. We do not be
Co0f,on~I nm Tnsf pn0p