The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-03-16
EASTERN ROADS
WIN RATE FIGHT
Fifteen p. G.. Advance on Com
mOdities Will Increase Re-
turns $6O,OOO,OOO.
SURPLUS GOES TO u. S.
Consumer Must Pay Is Cents
More Per Ton for Coal
Under Decision.
Special Despafch to The srx.


Special Despatch to The srN.
= WASHINGTON. March 15.-The Inter
state Commerce Commission handed
down to-day its long delayed decision in
Nhe is per cent. advance rate case re-
opened last October by the Eastern roads.
The decision practically comedies to the
roads the position they maintained at
the hearing last November and grants
increases amounting to the general ad
vance ordered at that time.
It's effect will be to add $50. 0.00o. 900 to
the income Of these roads. but with the
guarantee abou. to be fixed on the basis
Of earnings under the existing rates for
the three year period these increases will
accrue to the advantage OF the Govern
ment. to which any surplus earnings over
the guarantee revert during the period
Of Federal control.
Surplus for improvements.
The Government can make any use II
sees At OF the surplus. though II un-
doubtedly will be expended in railroad
improvements.
The decision was made under existing
law giving the commission full turis,lic
ton and was purposely handed down to-
day because of the fact that tomorrow
the President will sign the railroad bill.
This will change considerably the COM
missions rate making status and will
have the effect Of virtually wiping out
present dOckets. Director General Aic-
Adoo favored action by the commission
nj nd 10 tn haS
li6S1d the roads were entitled 70 m
advance.
The Is per cent. case was really begun
last spring and the first decision was
given last June. The Eastern roads won
some advances approximatins about
per cent, but the other roads lost their
case.
On account OF soaring expense ac-
counts the Eastern roads last October
asked to have the case reopened and
then requested that the full advance be
granted them.
Coal to Cost Is Cents More.
Under the law the President is about
to sign rates in the future will be fixed
by the President. but the Interstate Com
merce Commission Is given the right to
review on appeal from the carriers.
The orders issued to-day by the Inter-
state Commerce Commission grant to
Eastern railroads the right to increase
freight rates on nearly all goods shipped
as commodities by approximately Is per
cent The Is per cent. increase in rates
granted last June applied to goods
shipped under class rates. The new
average Is per cent advance applies to
all goods shipped as commodities with
the exception Of ice. lumber. lumber
products. cement. bltuminous coal, coke
and iron ore.
An increase Of one cent hundred
pounds Is allowed on lumber. lumber
products and cement. An increase Of 10
cents a long ton Is permitted oh anthra-
cite coal, and it is understood that this
will mean an increase Of Is cents a ton
to consumers. In other words. the price
Of anthra cite coal this coming summer
will be 10 cents less than the present
price instead Of the 80 cents stipulated
by the Fuel Administrator.
Six cases as filed by the roads with
the Interstate Commerce Commission are
affected by the new orders. Increased
rates are permitted on live stock and
fresh meat. effective March 25. Under
the Eastern commodity case the new
sc he dulles are granted except In the pro-
posals OF increases on condensed milk
and canned vegetables from Wisconsin
ana llllUOlb loiiito dh1 oh ae'hcSi' s'a's
props, mine timber in carloads and fur
, mace castings In less than carloads.
Rates on Grain Advanced.
general increase OF about II per
cent. is to be charged for shipping
petroleum and a similar increase in
grain shipments. Under the latter case
the domestic shipment rate for grains is
Increased from ol.S cents to o5.8 cents
and the export rate from 20.3 cents to
% cents
The rreish. earnings Of about sa per
cent. Of the railroads benefited by the
new order for the year ending December
81, 1917, were $1.25O,597.s60. The Is
per cent. increase. however. is given only
to those goods shipped as commodities
and to anthracite coal. and It is esti-
mated that in effect the increase in
freight earnings will be about per cent.
However, the Is per cent. increase oil
the class rate shipments will be In force
throughout this year so that the 1918
earnings will be much larger than those
of 1917. without taking into account the
increase ordered to-day.
The exception made in bituminous
coal, coke and iron ore Is explained by
the granting Of a II per cent. increase to
these commodities under a special ruling
last June when rates were increased on
| all class rate shipments.