Jasper County Democrat, Volume 13, Number 90, Rensselaer, Jasper County, 25 February 1911 — DECIDES AGAINST INCREASED RATES [ARTICLE]

DECIDES AGAINST INCREASED RATES

Railroads Hit by Commerce Commission Ruling. • - p SAVES SHIPPERS $50,000,000 Interstate Body Declines to Allow Single Advance by Six Hundred Carriers in East and Middle West —May Seek Injunction '.I ’ - Washington, Feb. 24.—The railroads have been decided against by the interstate commerce commission ic the important freight rate cases that have been impending for several months. The decision is sweeping beyond all anticipation, even by the shippers It declines to allow a single ircrease by the 600 or more railroads in the east and the middle west. It throws aside as unsubstantiated the coctention of the roads that they must havd increased revenues to meet the increased cost of equipment and operation and by its decision cuts off between $50,000,000 acd $60,000,000 a year in revenue, which the roads had expected to realize, from the proposed revenue increases. On the other hand, it means an annual saving of that amount to the shippers of the country.

The commission orders the carriers to cancel the proposed increases by March 10 and notifies them that in the event of failure an order will be entered continuing the present rates for two years, thus preventing the carriers from making any changes in th; l period." The railroads, may now appeal to the newly created commerce -court and it is the opinion of many of their lawyers that this step will be taken It is possible that the railways may seek an injunction from the commerce court restraining the commis sion from enforcing its order against' the increase, pending an appeal of the case.

While the decisions apply only to the railroads in the territory between the Mississippi and Missouri rivers, they affect practically every road in the United States. The decisions are the most important ever handed down by the commission. Through them the commission goes on record as opposed to the general tendency to raise freight rates. In a separate decision the commission allows carriers operating from St. Louis to Texas to retain their present rates, made two years ago In this case the commission says that the evidence shows that the roads are not as prosperous as roads in other sections of the country. The decision was written by Commissioner Prouty. The territory affected by this decision is bounded by Canada on the north, the Atlantic ocean on the east, the Ohio and Pato mac rivers on the south and the Mississippi river on the west. This case involved a general increase in class rates by the 420 odd carriers operating in this territory.

Chicago, Feb. 24.—Railroad officials here made no effort to hide their chagrin while the shippers joined in declaring that the decision is based on sound reasoning and is in accordance with the evidence presented. It vras the consensus of opinion that no fear reed be entertained that business conditions will be appreciably depressed because the increases have been prohibited. It is practically certain that an appeal from the ruling of the commission -will be taken to the new federal commerce court.