The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1926-07-23
BOOST in RATES
DENIED WESTERN
RAILROAD lines
Interstate Commerce Commits
sion Says No Justifying
Emergency Exists

Denial of the application Of west
ern railroads for a blanket freight
rate increase Of 5 per cent was made
late last week by the interstate COM
merce commission, which held that no
financial emergency which would
Justify such action exists in the west
ern district as a whole.
The commission also denied the pc
tiuion Of security holders Of North
western carriers for an additional Is
per cent horizontal increase in rates
in western trunk line territory, and
held that the earnings of the roads
in the west as a whole had not been
such a Ito warrant at this time a gen.
eral downward revision Of rates on
farm products, including livestock.
Inequalities Admitted.
The commission admitted, however,
there were many inequalities in the
rates structures in certain sections of
the west which should be corrected,
and said it's conclusions were without
prejudice Ito the determination of is
sues on its general Investigation Of
the cOuntry's freight rates as ordered
by congress.
While fuller information was said
20 be necessary before any action
could be taken as to rates on agricul-
vural products, which il was specifi-
cally required ito investigate under
terms Of the Hcch-Smith resolution,
t. Ccmmission suggested that the
l,~-4, E proposing rate changes ~
Improve alnings, or rectify ~ineq-ai.-
ties, S. u'G ask no advance IL rates
on farm moductS except where par
,icUlar cia.sc5 need edjustment to
ltmove i 1-sl enc5->, or where 1t
auld be SHOWN ta.,, the product is
lpc affected oy q ,ressiOn.
Carriers in ,.ae west, the commits
SION said, appear to be both "finan-
ciaily ~ physically sound" although
IL was .aaal .l,ot c~ortaiN &C i'm
portar- -a---O- !. .4- .JI...- stern
region md in western trunk line
CerritC & wore o yielding SIS per
cent, the figure held by III tc he a
lair return. upon any rae has tina.
could ~-scnably be- aCopto1 d ad-
vance Of a final determination OF
presen values for To .e-making pur-
poses.
The cast favorable conditions, as
far a carrier reV-nues were con-
cerned, the commission said, appeared
TO eXis. in western trunk line ter
ritory. 1t was added, however, thai
in the entire western district condi
ti0ns had recently shown an i'm .rov
ing tendency"
Provisions in section 15-A, of tn,
transportation act, directing the com
mission, to initiate, modifS establish
or adJ st rates so that c,rriers MAY
earn a fair return, wepa described al
not relieving the railroads frcT tn.
primary duty Of Initiating" -ates
That function, the commission said
belongs to management and not t.
regulation.
ct is The right and duty Of tn
carriers, it is asserted, "to take tn
steps necessary to correct imprope
rate relations as they may be foun
TO ext Il, and to supply revenue dc
~ficiencias by initiating sCitabl
changes in rates."
Not only did the carriers fail
present evidence with respect to tn
need for changes in individual rate
between particular points, or on pal
ticular classes Of traffic." it col
tinued, "but no stale ~cOmmissiof
shipper, security holder or other rel
resent&iva of the public, or of pa.
ticular interests who appeared, o
fered any feasible suggestions of tn
character"