Morning Oregonian., June 30, 1917, Page 5, Image 5

THE MORNING OREGOXIAN, SATURDAY, . JUNE 30, 1917.
GENERAL FREIGHT
RATE RISE DENIED
Railways Prosperous and
Profits Gaining, Says In
terstate Commission.
MEMBER SUGGESTS PROBE
Gloomy Forecasts or Officials of
Roads rind Little Sympathy.
Few Concessions In Matter
of Increase Are Made.
Continued From First Page.)
Class. from 62. 5 to 60.; fourth
class, from 36.8 to 42; fifth class, 31.25
to 36; sixth class. 26.3 to 30 cents per
hundred pounds.
The Commission found In general
that the effects of the Adamson eight
hour basic day and of the Increased
cost of fuel, supplies and materials
had not affected the Southern and
Western carriers as greatly as It af
fected the Eastern carriers.
The Commission authorized roads to
file "tariffs Increasing existing joint
rates between rail and water carriers
to a level not higher than the all-rail
rates between the same points."
Situation Held Rot Urgent.
The decision, in part, follows:
"Only a most urgent and extraor
fllnary situation would justify tariffs
carrying a large percentage increase
to become effective. This record does
not disclose existence of a situation re
quiring so heroic a remedy.
"From a technical standpoint, the
question at issue is that of the sus
pension of the proposed increased
rates. In substance, the issue is the
reasonableness of those rates. inas
much as a general percentage increase
Is so undesirable, because of its seri
ous effect upon commercial conditions
and established relationships, it would
seem appropriate for the carriers to
cancel the tariffs which we suspend
herein and permission is hereby ac
corded them to do so.
Faith Not Questioned.
"The carriers were clearly within
their rights in bringing these matters
to our attention as they did. We do
not .question their good faith in any
thing they have done in this connec
tion. Their action is another evidence
of the far-sightedness and the sense
of responsibility in the performance of
their duties toward the public, with
which so many of their officials are
tnanaglng and administering the affairs
of their respective properties.
"The things which they believed
months ago would happen have not
happened. None of us knows what
the future may develop. We do not
believe that it would be in the interests
of anyone now to resume hearings in
details as to the suspended tariffs.
"We shall, through the medium of
the monthly reports of the carriers,
keep in close touch with the operating
results for the future, and If it shall
develop that the fears which have
prompted the carriers are realized or
that their realization is imminent, we
shall be ready to meet that situation
by such modification or amplification
of the conclusions and orders herein
reached and entered as are shown to
be justified.
Severe Weather Blamed.
"First representations were made on
behalf of Eastern carriers on March
22. This is about the time in each
month when the officials of the car
riers generally get the statistical re
turns showing the results of operation
during the preceding month. The
operating results for February, 1917,
may well have startled the railway ex
ecutives, because, generally speaking,
they were, for the Eastern district
especially, extremely unfavorable. The
weather conditions had been severe.
As a result of the congestion of traf
fic on the Eastern roads and the vari
ous operating difficulties arising out
of the shortage of cars, the movement
of the empty cars westward reached
extraordinary proportions over some
lines.
"Because of the severe weather con
ditions, the expenses of the movement
were greater than usual and, of course,
the movement -of empty cars adds
nothing to the revenues. Finally, in
creased wages directly and indirectly
resulting from legislation first ap
peared on the operating accounts of a
number of carriers for the month of
Vebruary.
"These three causes, together with
increases in the cost of materials and
supplies, and to some extent of fuel,
made the operating results of the East
ern carriers for February alarmingly
unfavorable. If these unfavorable ten
dencies had continued and the operating
results for the succeeding months had
perpetuated tendencies of the month of
February, a problem very different
JI1I1I1II
iimniL-
"The Residen tial
Garden Spot of
Portland."
Restrictions in this sightly
home district are suffi
ciently rigid to guard
against invasion of any
thing undesirable.
A property in which the
interest of the original
owners will not cease with
its disposal a sincere in
terest in its further beau
tifying, its up-keep, the
very residents themselves.
Investigate the advan
tages of
"The Ladd Thrift
Way"
to a home in Eastmoreland
LADD ESTATE
COMPANY
Stark at Second
Buiiiiniiiiiiiiiiiiiiiiiiiiiimiiuuimiiiiic
EARLY MORNING PICTURE OF FAMOUS IRISHMAN, JUST ARRIVED
HERE WITH CHEERINf MESSAGE FOR IRISH.
X .: - 3
- rrn
T. I. O'COMVOR.
Because Mr. T. P. O'Connor is the most genial and obliging of Irishmen
he promptly acceded to our reueqst that he pose in an exclusive picture the
first thing In the morning shortly after his arrival in this country.
Mr. O'Connor, or as he is known .the world over, "Tay Pay," has arrived
in America with a message of cheer to the Irishmen here the message that
Ireland's dream of home rule is at last to be realized.
When questioned regarding his mission to the United States he said: "I
am here to lay before the men of my race and before the friends of Ireland
of whatever race the real issues of the Irish situation at this time, when
we are approaching a solution of the whole problem." In his opinion Ireland
will have home rule very soon.
"Ireland is with America and her allies." said the Irish Nationalist
leader, speaking of his country's attitude regarding the war.
from that which now confronts us
would have been presented.
"The emergency which the carriers
believed existed when these proceed
ings were initiated was attributed by
some primarily to the war in Europe.
It has not been shown that military
transportation has been in the past, or
is liKely to be in the future, a finan
cial burden to the carriers. On the
contrary, certain facts were referred to
which indicated that the transporta
tion of troops had been more remuner
ative during certain mobilizations in
the past than ordinary passenger
transportation.
"This record does not convince tis
that the suspending or refusing to sus
pend the proposed rates or the grant
ing or refusing to grant increased
rates will facilitate or retard the suc
cessful prosecution of the war.
"An examination of the results of
operations during 1916 as pictured in
the reports of the carriers to the Com
mission shows that that year was, as
a whole, more profitable for the car
riers than any preceding year, and it
may be assumed that they might suffer
some abatement of the prosperity of
that year without being crippled or in
any way incapacitated."
"An examination of the operating re
sults of individual carriers shows that
certain of them have lacked prosperity,
while others have been affluent. The
reasons for lack of prosperity on the
part of some, of them are well known.
The great majority of them show a
wealthy condition, from financial and
operating standpoints. We must con
sider not only the successful and
strong, but also the unsuccessful and
the weak. The needs of certain weak
lines, however, cannot justify a course
of action that is unwarranted by the
condition of. the large number of strong
and successful lines. This record
shows that many of the carriers are
in a most prosperous condition.
Roads Declared Prosperous.
"The general operating , results,
looked at in the large, through a series
of years, show, on the 'Whole, substan
tial improvement, general prosperity
and, by comparison with former years,
ample financial resources with which
to conduct transportation.
"Using, the actual figures for the
first four months of the present calen
dar year, it would appear that, al
though the gross revenue for the car
riers in the Eastern district would ex
ceed that for the calendar year of 1916
by approximately 7 per cent, the oper
ating income per mile of roads will
be but J5802. as against $7782 in 1916.
This is only 75 per cent as much net
income per mile of road in 1917 for
performing about 107 per cent of the
service performed in 1916.
"The returns for the first four
months of the calendar year 1917 for
the roads in the Southern district and
in the Western district, however, dis
close a different tendency and outlook.
Common alike to the three districts
is the increase in the gross operating
revenue. Thus, the first four months
disclose average operating revenue per
mile of $4388 in the Southern district,
as against $3960 for the corresponding
period In 1916 and $3705. as against
$3288, in the Western district.- But
in both the Southern and Western dis
tricts the first four months of the
current calendar year presage not only
an increase in the average operating
income per mile of road, $1222 as
against $1181 for the first four months
of 1916 in the Southern district and
$930 as against $877 for the roads in
the Western district, but in both an
increased ratio of operating income to
average investment.
Emergency Is Denied.
"We are led to the conclusion that
no condition of emergency exists as to
the Western and Southern carriers
which would justify permitting a gen
eral increase in their rate to become
effective. In the Eastern district in
creased rates have recently been per
mitted to become effective generally on
bituminous coal, coke and iron ore.
We think that similar increases may
properly be permitted in the Southern
district on coal, coke and iron ore,
and in the Western district on coal
and coke. This will preserve rate re
lationship between the several districts.
"In the Southern district the pro
posed increased rates on coal are on
the basis of 15 per cent, with a maxi
mum of 15 cents per ton. These tar
iffs we shall permit to become effec
tive. In the Western district the In
creases are based upon 15 per cent,
with a minimum of 15 cents per ton.
These tariffs will be suspended, but
the Western carriers may, if they so
elect, file new tariffs carrying in
creases in rates on coal and coke not
exceeding in any case 15 cents per
ton. All of the tariffs included in
this proceeding of the Western lines
will be usnended, Ail of th& tariffs.
Included in this percentage of the
Southern carriers will be suspended,
excepting those applying on coal, coke
and iron ore."
"For reasons indicated In this re
port, we shall suspend all of the tar
iffs before us in this proceeding of
the Eastern carriers excepting those
applying on iron ore.
Eastern Conditions Different.
"As has been indicated, however, the
conditions confronting the Eastern car
riers are substantially different from
those confronting the Southern and
Western carriers, and we are per
suaded that they are entitled to in
creased revenue beyond and above that
which they are securing and will se
cure from the increased rates on
bituminous coal, coke and iron ore.
"By a recent act of Congress juris
diction has been given us over the
movement, distribution, exchange, in
terchange and return of freight cars.
The obvious intent of this legislation
is that cars shall be so used by the
carriers as to secure the performance
of the largest possible amount of trans
portation in needed and equitable ways.
Shortly following the outbreak of the
European war an unprecedentedly
heavy movement of freight to the
Eastern district began and that dis
trict in large part has been badly con
gested ever since. Hopeless conges
tion has been avoided only by a prac
tically continuous condition of operat
ing under embargoes. The result has
been that while roads in other sec
tions have generally been short of
cars and in possession of less cars
than they owned, the carriers in the
Eastern district have been in posses
sion of substantially more than their
ownership of cars.
Distinction Is Drawn.
"As we have indicated, percentage
increases, especially where the percent
age is suDstantiai. cannot fail to dis
rupt competitive commercial relation
ships. A general increase In class
rates which preserves existing relation
ships distributes itself more generally
and more equitably than would general
increases on commodity rates. . .
"Among the Eastern carriers, those
located in iYew England appear to pre
sent the most serious condition. They
are not carriers of large volumes of
heavy loading commodities that move
under commodity rates. It Is not pos-
sioie to estimate with confidence and
accuracy the amount of additional reve
nue that will accrue from increased
class rates, .... tout we conclude
that the Eastern carriers should be ner
mltted to increase their class rates be
tween .New York and Chicago and cor
respondingly to increase their other
class rates applying intra-territorially
between points In official classification
territory, observing the established re
lationship between ports and localities.
Such tariffs may be made effective
upon not less than five days" notice.1
Commissioner Harlan, in his concur
ring opinion, declared for an improve
ment in present transportation condi
tions.
"It will suffice to say," he said, "that
while the strains of the war have much
to do with the present transportation
condition, the outstanding fact during
ine nearing was that our transporta
tion system is lacking in the capacity
to meet the demands of the shippers
and the resulting loss to the general
puouc nas seen very large."
Emerffner Xot. Shotnu
Commissioner Meyer in his opinion
declared that the roads had .not shown
mat an emergency exists.
"Future events may Justify this In
crease. Events up to the present time
have not done so," he said.
Commissioner McChord directed at
tention to the probability that Con
gress will act in the matter of high
prices of fuel and supplies.
"It is argued with much force," he
said, "that this is a question for Con
gress to determine and that until it
is clear that such control will not be
exercised and that the carriers' fears
. . . have been realized this Com
mission cannot be justified in placing
the burden upon the general public
. . . . of increased rates. If it
should hereafter appear that the ap
prehensions expressed by the carriers
nave Deen realized, tnen 1 am pre
pared to sanction such rate increases
as will permit the carriers so to equip
themselves as to enable them to per
form in the most efficient manner the
transportation required of them."
INTERSTATE CASES PEXDEVG
Suspension May Have Bearing on
Carriers' Petitions.
Suspension of the 15 per cent In
crease in interstate rates doubtless will
cava it bearlas n tbs sending p.
plication of the carriers for a similar
advance on intrastate rates.
Such applications now are before the
commissions of Oregon, Washington,
Idaho and other states for considera
tion. They are based, mostly, on the
contention that if the Interstate rates
are Increased the state 'rates must be
advanced to conform.
However, the carriers are prepared
to make a showing that their dimin
ishing net earnings and Increasing
costs of operations Justify an advance
in the state rates per se.
It is probable, therefore, that the
proposed hearings on the Oregon rates,
scheduled to begin fhe second week
in July, will proceed as originally
planned unless the carriers ask that
the cases be canceled.
The Commission's order yesterday
will have an Important beneficial bear
ing upon lumbering and all other in
dustries of this territory.
The lumbermen made vigorous pro
test before the Commission at Wash
ington when the case came up for hear
ing a few weeks ago. They pointed out
that a flat increase of 15 per cent
would unjustly discriminate against
Pacific Coast fir in favor of Southern
pine, as it would add $1.15 per 1000
feet to the Pacific Coast product, while
adding only 35 cents to the Southern
stock, on the basis of the Chicago mar
ket. Proportionate differentials would
be created at intermediate and farther
Eastern points. A large proportion of
the Coast mills' domestic trade lies in
the Chicago district.
Similarly the fruit industry of the
Northwest would be affected, as a hori
zontal Increase of 15 per cent would
add more to the Pacific Coast rate than
to the Michigan rate or the New York
state rate.
Wool, grain, hay, fish and all other
products peculiar to the Northwest that
are marketed In any large volume in
the Middle West and East would be
similarly affected. Each of those com
modities was the subject of serious op
position before the Commission.
The proposed increase also would
have had a serious effect on the steel
shipbuilding industry of Portland and
other Pacific Coast cities, as it would
have added 15 per cent to the freight
charges on all steel shipped out here
from the East.
Most of the existing steel ship con
tracts were made on a basis of the
present freight rates. Steel shipbuil
ders aver that they would have suf
fered a serious loss under the pro
posed advance.
As a matter of fact, the Western
nailroads made no such urgent demand
upon the Commission for the increase
as did the Eastern lines.
The testimony of Julius Krutt
schnitt, chairman of the Southern Pa
cific, was typical of the Western lines'
attitude. Mr. Kruttschnitt pointed out
that the Southern Pacific was contin
uing to earn a surplus from year to
year and that In Itself the road did not
need the increase.
But some of the weaker lines, he
said, were sorely In need of the ad
vance, and it would be obviously im
practicable for the Commission to
grant the higher rate to the weaker
lines without granting it to the strong
er ones.
Similar testimony was given by B.
L. Winchell. traffic director for the
Union Pacific system.
mT
x-The wolf is at the cloor of theTworld.'so Mr. Hooverremindsusrand hwouIdrrieet .
it with the Food-Control Bill that aims to reducethecostoflliving Jorourselyes.and.tq
bring victory nearer by feeding our Allies
J"In the last five months," says MrTHoover,' " $250000,000.00hasbeentraaefj
from the American consumer In excess of normal profits of manufacturers and distributers.
!As evidence that the unprecedentedly high prices of food are largely due to " rampant
speculation," he points out that "the average prices to the consumers in countries where
ood administration is now in effect, are lower than those prevailing in the. United. States?
altho those countries are mainly dependent upon us for their supply."
In THE LITERARY.DIGEST for June 30th, this most important subjecTtoTthe Amer
ican public is presented in all its ramifications. THE DIGEST telegraphed to newspaper
'editors in every section of the country asking for an expression of the local sentiment as to
(the Food-Control Bill, and the results cf this investigation are shown." There is. no. other
subject that more directly concerns the people of America to-day.' .
' Other topicsofunusual interest in. the June 30th DIGEST, arej:
;How We Can Win the War fronTthe Skies
Summary'.of.thejWork.the Airmen Have Done, and What This Country Can Do. .ToPominateth
(Air-Lane and Cripple the German War-Machine f
America's Billions'For Liberty
Why Latin-America Hesitates
Canada Spurns Royal Titles
Shall We Eat War Bread
As to Sticking Out the Tongue
The Superstition Regarding Dope
When a "Romney" is Not a "Romney"
Poking Fun At German Art
jWhy Reprisals Are Demanded in England
Swiss. Neutrality Questioned
How
. By no means, the least valuable service"
which THE DIGEST performs for busy men
of affairs, is the way in which it treats busi
ness conditions, banking, investments.and
other financial matters, each week."
In an hour's reading, or less, the busi
ness man can get a grasp on the most impor
tant phases that have developed throughout
the week. The consensus of the most highly
skilled financial specialists, gleaned from the
v
i
JT'Tis aV
MasrSi of
I Distinction to J
I &e a Reader i f
IIsestr
Boys' New Norfolk Suits
Today $6.50
These are exceptionally sturdy suits, calculated
to serve the boy through the strenuous Summer
months. I am determined to maintain, if possible,
the quality and all the desirable features of the
suits I offer at this popular price.
MUSIC TEACHERS TO MEET
Oregon State Association to Hold
Sessions July 5, 6 and 7.
John Claire Monteith. president of the
Oregon State Music Teachers Asso
ciation, Is extending an official invi
A . Fine Collection of Illustrations, Educational and Humorous;
tKT" Digest" Deals With Business BiganS Little
June 30thlNumberon Sale To-day
ffleiary IJiest
FUNK & WAGNALLS COMPANY (Publishers
These suits will be found worthy in every
way; the fabrics are cheviot, cassimere and
fancy mixtures; the workmanship is thor
oughly dependable.
An extra pair of "knicks" goes with each
suit.
There are scores of suits here to choose
from today at $6.50.
Children's Novelty Wash Suits
. These are clever little suits, in all the desirable new styles. .All
are in woven colors, and the colors are guaranteed fast.
A modest price range 98 to S7.50. 4
Second Floor Elevator
C fi.
Morrison at Touvth
tation to all teachers and lovers of
music throughout the Northwest to at
tend the association convention in
Portland July 5, 6 and 7. All teachers,
whether members of the association or
not, will be welcome at the sessions.
Reservations for the banquet Friday
night, July 6, may be procured from
Daniel H. Wilson, Eilers building. The
association plans to take its visitors
alone: the Columbia River Hi srh way-
There Are' Better Signs in Russia
Germany's Apprehension of .Trade
Ban 7
The Less Rest, the.LessWbrk
War in Tin-Cans
"Scrambling" Science v.
A German Defense of Moliere
Mercier to German Catholics '
Billy Sunday's New York Campaign
The Best of the Current Poetry
newspaper and periodical press of the world,
is freed from useless verbiage and is present
ed in concise, accurate form, for quick read-
ing and assimilation,. There is no line of
industry, or finance, or banking, whose con-1
ditions are not reflectedinTHEDIGEST'
from week to week.,
'Get THE DIGEST IhisweekTarrd'see'
what, a useful servicethisDepartrnjmJjU'
perform for you.
All News-dealerslOlCents
of the Famous'NEW Standard Dictionary)7NEW"YORK
Saturday afternoon, July 7. Teachers
who wish to join the organization are
requested to register Thursday morn
ing, July 5, at the convention head
quarters at the Multnomah HoteL
The United States has no National
flower, but efforts have been made to
have the goldenrod adopted. This
flower is abundant through an enor
mous area of the continent.