The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-10-11
REFUSE PASSENGER hike
Industrial Court Grants Increase or
Freight and Pullman Rates


Industrial court judges refused to
grant railroads an increase in apssen-
ger rates in Kansas, altho an advance
of 80 per cent in freight rates has
been allowed. A so per cent advance
in Pullman fares was also approved.
Several classification orders were is
sued in the compromise decision af-
fecting advances in rates to transpor-
tation companies.
Application for the increased rates
was made by the railroads as a result
of an order by the interstate COM
merce commission. The interstate
rates were effective in August. The
new intrastate rates will be in opera
ton October 81. The court retains
jurisdiction of. the case and requires
the railroads to file monthly state
ments showing. revenues and expend1-
lures under all clasSificationS of bust
ness. Before February 1 the railroads
must file with the court a statement
showing values of all properties de-
voted to interstate and interstate bust
ness.
&c. c. Made Error
That the interstate commerce COM
mission made an error in computing
returns to the railroads under the fed
eral order is a contention by the Kan
sas court. The state court Aolds that
rates allowed by the commerce COM
mission would produce an annual re-
turn of $192.S53.696 more than esti-
mated. Because of this error, the
court contends that the rate increase
allowed for Kansas will give the rail-
roads an earning of practically per
cent.
Passenger rates are high enough in
Kansas, the court held. and refused to
advance the charge for passenger
haul, aItho it approved the so per cent
Pullman rate advance. Applications
for increased rates on excess ba ggag e,
milk, and cream were denied NO IN
crease was granted for carrying petro-
leum, crude oil, fuel oil, road oil. and
various oil products. Specified in
creases were allowed on Abrick, ce-
ment, crushed stone, sand and gravel.
Try Rate Out for Six Months.
The new rates will be in effect six
months during which the court will re-
| tain jurisdiction and make supple
mental orders. while all members of
the court signed the order, the court
was not in thoro accord. Judge Hug
gins urged that the federal order be
approved as a blanket increase or that
the present rates be held in force six
months pending further investigation.
1t is probable that immediate action
will be taken by the railroads looking
| to the fixing of rate for Kansas
which will be in keeping with the in
terstate commerce commissions order.
| 1t will be necessary for the roads 10
return to the federal commission lot
1 alterations in the state order. Action
| before the supreme court or the fed
eraI court may also be taken.
To Modify Recent Order.
Judge Reed, who wrote the lengthy
railroad rate opinion, pointed out the
error in earnings of the roads. He
said the revenues to be produced were
| far in excess of those contemplated
under terms of the order. In order to
produce a return of 6 per cent to the
railroads, the state order states. an
increase of but 24.5s per cent would
have been necessary. The industrial
court will ask the interstate commerce
commission to modify its recent order
in conformity with the alleged error
| in determining the earnings of the
roads under new rates.
| In discussion of the earnings of
Kansas roads. the industrial court
held that records showed the earning
/ power of Kansas roads was 1882 a
mile as shown for the first five months
of 1920. while earnings for all roads
! in the district averaged but s6,Ss1 =
mile. 1t is urged in the opinion that
operating revenues of roads doing
business in Kansas increased 22.e per
lcent in one year and that net revenues
| advanced 80 per cent. Revenues to
the roads, the industrial court held.
have increased faster than expenses.
Its was On the basis of this showing
THAT the modified rate increase was