New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-20
Railroad are
Increase Denied
I'm This State
CONTINUED from papo one)

discrimination claimed relates to dis
examination between persons or local.
ties in intrastatc commerce on the one
hand and interstate or foreign COM
merce on the other
"a discrimination may, however, as
we'll result from interstate rates that
are too high or too low as from intra-
state rates that are too high or too
low, and the proper correction may be
in the interstate rate, over which this
commission has no control.
"There is no express authority given
to the commission to giant rates in
excess of those authorized by statute.
except under Section 40, which has to
do only with rates insufficient in them
selves. We should not, in the absence
of Legislative authority, arrogate to the
commission power to authorize a rate
IN excess Of the statutory maximum,
merely to enforce a recent act of Con-
gress, which contains within itself u
special remedy.
"The freight rate case is nothirc
more than an application for short
notice permission and involves no ;ora-
determination of the propriety of the
rates This application, while it is IN
part for short notice peru isson, de-
mands as a preliminary investigation
and finding Of facts sufficient to nu
thorize and demand that the commits
sion disregard the statutory limita
ton and the applicants present no evil
dence warranting such finding"
The commission acted favorably on
the application for a 40 per cent in
crease in freight rates. excepting from
Its decision, however, the advance in
rates for shipments Of milk and cream
and pointing out that the decision is is
designed to prevent delay and con-
fusion rather than to be an unquali-
tied approval of the new freight rates
Holds Right of Suspension
Its purpose is to permit the new
rates to take effect on three days
notice, instead of thirty, with full
rights Of suspension reserved for the
entire thirtyday period The power
OF summary suspension of the new
freight rates is limited to thirty DAYS.
but complaints regarding them will be-
received and acted upon after the ex-
piration of that period
The evidence before u.s." it was
SAID, establishes g fair probability, if
not presumption, that a general sub
stantlai increase in rates is necessary
The interstate rates, by permission of
the Interstate Commerce Commission,
are to become effective August 26, 1920.
If the present petition is not granted
there will, at the very best, result a
considerable period of time during
which the interstate increases will be
effective and the interstate rates will
remain on the present basis.
The interstate increases allowed
are universal and SO great in amount
that there would result a very great
disparity between interstate and intra-
state rates. This could have a disturb
ing influence on business of all char
acter and the disturbance might prove
disastrous in some lines.
There would also result multitude
Of unwarranted Determinations, with
violations of the long and short haul
clause and of the rule that through
rates must not exceed the sum of the
locals. The rates of the New York
Central. between Albany and Buffalo,
to mention single instance, would be
approximately 40 per cent lower than
those on the Lackawanna. Lehigh VAL
ley, Erie and Penn sylvania. The con-
sequence of this state Of affairs for
even a short period can readily be
imagined.
Rates Subject to Complaint
Sound public policy and commercial
necessity both dictate that a special
permission should be granted, but in
granting it the commission does not in
dictate its approval or disapproval of
the rates contained in the tariff. These
will be subject to complaint, investiga-
ton and suspension. if the propriety
of suspension in any case is made to
appear.
The foregoing applies to freight
rates generally, with other incidental
special charges. 1t may be that in this
state the great bulk of milk and cream
is carried in special milk trains, but
their equipment and movement har-
monte more closely with passenger
operation than with freight operation.
Fluid milk, cream and articles taking
the same rates should therefore be ex-
cepted from the operation Of this or
der"