Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-04-28
HIGHER RATES FOR
NEW LANDROADS
!. C. C. Puts Up Freight 5 to
IS Per Cent; Passenger,
2 81 Cents a Mile.
NEW HAVEN CRITICISED

The Interstate Commerce Commission
yesterday allowed increases IN class
freight rates Of between S and Is per
cent, and in passenger rates Of ~ cents
mile on New England railroads.
The passenger rate increase will be
felt by many Westinghouse who year
~ 60 to New England points for their
vacations.
average Of 2st cents. according to the
commissions order. Changes in pas
|senger schedules were authorized
which will bring in many millions OF
dollars to the roads.
Increases in class rates were disal-
lowed for the Canadian Pacific and the
Bangor and Arostook railroads.
Glass Rates Specified.
The commission specified a scale Of
class rates for the leading railroads
and somewhat higher rates for the
minor lines in New England.
One way passenger fares are to be
|2A cents instead of tho present aver
age OF 21s cents and mileage may be
sold at the same rate per mile as one
way tickets. or. in the carriers discre.
ton on basis Of one tenth Of cent
or one eighth of a cent below the regu-
lar one way fares The roads applica-
ton for elimination Of 25-trip family
tickets on a basis Of IN cents milo
was granted. The commission also per-
mitted increased zone fares on the
Providence, Warren & Bristol branch
Of the New York. New Haven and
Hartford.
The New England roads apr LEGATION
Fo hi OH foy~ A1oH 1nyifh "a mr.
mission last fall. and was supported by
evidence seeking to show greatly in
creased operating costs particularly
for fuel. The New England lines, like
all others in the east, participated In
the recent allowance Is per cent higher
commodity rates, but that decision did
not AFFECT the miscellaneous schedules
of rates grouped under cla3SeR
New Haven Sharply Criticised.
The commission allowed the in
and Hartford reluctantly. and criticized
sharply the management Of that road
for it's investments in other railroads
within the last twelve years:
missions report. dishonesty or with
wanton recklessness. or foolishly lost in
nonrailroad enterprises, is not money
put to public use upon which the rate
payers are bound in law And in con-
I'VE do not overlook that under our
present form of corporate management
the great majority Of the stockholders
in the New Haven enterprise were oven
more the victims Of the mismanaging
directors than were the patrons of the
road. It is common knowledge that tho
directors of these great corporations
are. in fact, selected by banking or other
interests in too many instances actuated
by motives essentially adverse to the
interests Of the stockholders.
Perils May Continue.
Until this commission or some other
governmental body with adequate
power permanently controls the issue
Of carrier securities. and. within rea-
sonable limitations. the application Of
the proceeds thereof. stockholders and
other investors in carrier securities are
certain from time to time to be sub
jected to such perils of mismanage-
ment and resultant losses as have ac-
crued to the stockholders Of the New
Haven. the Rock Island. the Perre
Marquette. the Cincinnati. Hamilton &
Dayton. and others. We say with this
reference to future conditions, not
overlooking the adequate but tempo
rary safeguards now obtaining under
1.-THE fate OF the New Haven stock
holders is a hard one. but we have no
alternative except to hold them chiefly re-
sponsible for losses which. in conteTnpla
ton Of law. they brought upon them
selves through their chosen directors. We
limit our present conclusion to finding
that under all the circumstances of the
New Haven case reasonable return upon
the carrier property investment lshown
upon its books may be justified"
The New Haven expects to receive from
yesterdays decision increased passenger
revenues of about $4,000. 900 and in freight
revenues about $1,Ss5.000.
The commission criticised the abuse
Of the mileage book system in New Eng
land, saying travellers in the past have
obtained mileage too cheaply and used 1t
in discrimination against travellers on
straight cash fares.