The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-08-02


{ opinion must be composed or de-
hat the conclusion, considering all
Ii our approval.
"The Increased rates permitted under
the ruling in eX parte "A will probably
go INTO effect Sept. !, 1920. The OPP
Grating revenueS of the railroads under
present rates and conditions are recog-
nized by all persons as insufficient. A
part Of the responsibility to meet the
situation rests upon the state commits
sions. Such increases as will be
made in intrastate rates should, if pos
slbbie;; be made effective Sept. l,
The report is signed by William u.
b. Ainey, chairman public service COM,
mission OF Pennsylvania Royal {.
Dunn, Of the Florida railroad commits
sion, and John A. Guiher, of the Iowa
railroad commission.
We participated in the conference in
the same manner as members OF the
commission, the state commissioners
report declares, being invited by them
to take part in the discussions and eX-
press our views with full freedom. The
members of the commission gave TO the
ease intense and efficient application,
examining and discussing it with the
evident desire to reach correct conclu-
sions and apply the increase in such
manner as to deal justly with the whole
country.
The questions presented were very
numerous, involving the commerce of
the whole country and the entire rail
transportation system of the United
States, many of these questions being
Of complex character. Any decision of
the case looking to the observance of
the statute affects In some way every
rate now effective.
Speaking generally, every contro-
verted question concerning all classes
and commodities, and all rates, rules
and practices of rail carriers and all
the theories of shippers and carriers
were presented and urged in the tes-
timony and in argument before the
commission and given careful consid-
Grafton in conference.
The commissioners were not of one
mind on all questions and their con-
clusion in many cases was the result
of recognizing that the views of the
other man must be taken into account
and that there must be some surrender
by each before an agreement could be
reached. In some instances the con-
clusion OF the majority Is the view ex-
pressed in the ruling. on some of tho
accord with the majority and in some
instances we three state commission
ers did not have unity Of views"
Reimbursement of the whole rate
structure OF the nations transporta-
tion systems was started today with a
the frelght, passenger, Pullman, excess
baggage and milk rate increases au-
thorized last Saturday By the interstate
commerce commission
While tariff experts are working on
the ganers zsls be carriers
win make application 70 the various
state commissions for advances in in
trastate rates to correspond with those
in interstate rates. Requests for ad-
vances in passenger, Pullman, milk and
kosr t,g ffa as NgA 10
be the same for all states, as the in
creases in these charges authorized by
the federal commission were general
for the entire country. They were 20
per cent on passenger, milk and ex-
cess baggage charges, and so per cent
on rates for sleeping and parlor car
space.
In the case Of freight rates, however
the carriers will ask the states to ad-
vance these tariffs to correspond with
the increases granted by the federal
commission for the territory in which
creases authorized are 40 per cent in
Eastern territory, 25 in Southern and
Mountain Pacific territory, and S5 in
Western territory.
In announcing that the applications
for intrastate advances would be made
to the state commissions, Alfred 7.
Thorn, general counsel Of the Associa
tion OF Railway Executives, said these
increases would not enlarge the gross
income to be received by the roads un-
Ger the decision of the federal commits
sion, because in presenting their case.
the carriers had based their estimates
on corresponding intrastate rate ad-
Vances
The railway executives have not cal
culated the total increased revenue TO
be derived from the rate advances, but
from their estimates presented to the
commission at the public hearings the
sum has been unoffiCialiy approXimated
at one billion and a half dollars.
The commissions decision is intended
to so fix rates IS to give the roads the
s per cent return on their aggregate
value permitted by the transportation
act.
Since the commission fixed the aggre-
gate value OF all the lines at at SlS.900,-
000 zoo, the net operating income would
be approximately $t,134 0o0 900, as COM
pared with the 1898, ,0O0, 900 standard re
turn the roads have received during the
period of federal control and since.
Coastwise and inland steamship COM
panies and electric railway lines are
permitted under the interstate com
merce commissions decision 10 raise
Only freight rates. Nothing was SAID
by the commission as to passenger rates
on the steamboat lines, but the decision
did say specifically that the freight rate
increase granted electric railway lines
was not to be construed as an ex-
preston Of disapproval OF Increases,
made or proposed in thel regular man
ner, in the passenger fares of electric
lines
While the commission authorized sep
arate freight rate increases to the rail-
roads in the four separate territories
the increase on freight moving from
one territory into another will be 81 Id
per cent.
Creation by the commission on its own
motion of the mountain Pacific terri
tory was unexpected The western
ROADS as whole had Joined in asking
for an increase of 1913 per cent, but
the Southwestern lines later at the
public hearings asked that they be CIV
en- separate treatment and a freight in
crease of approximately 80 per cent.
The commission did not grant this re-
quest, saying that it had been op-
posed by many shippers and other car
riers in the Western group
The surcharge Of so per cent on
sleeping car and parlor car space Is
to accrue wholly to the railroads. This
charge was opposed by the Pullman
company on the ground that it would
reduce the travel in cars Of that type
The commission held, however, that a
change of this character mas much In
ms favor" as "unquestionably the serv-
ice is more valuable TO the passenger
and more expensive to the rail car