Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-11-02
Railway Men Admit Increases Merely
Opening Wedge.
EXPENSE RAILROADS ARGUMENT
Plead Increased Wages, Cost Of Oper-
alton and Efficiency.
JOHNSON TEsTFIEs ON STAND
Rock Island Assistant Traffic MHh-
nEer RepIics TO Pointed Questions
by COmmissioner Lame as
to Rate Increases.

CHICAGO. Nov. 1.-Preseutation Of evi-
dence in tho rate hearing before the In
terstate Commerce commission was con-
cludcd this afternoon. Arguments on the
evidence will be heard by the commission
al Washington on December Il, and after
due deiberaUon the commission win an
nounce what is generally believed the most
important decision ever emanatng from Il.
The hearing was instituted at the in
stance OF shippers who rose in protest
when western railroads announced that
rates on fifty different commodities were
advanced Opposition to this became gem
eral and the railroads agreed not to put
the new rates into effect until the Inter
state Commerce commission had conducted
a hearing at which the shippers should
be heard as to the fairness of the proposed
advances
Hearings were held at Chicago and New
York, conducted at first by an examiner,
but later owing to the paramount import
ance Of the case, Commissioners Clark and
lane assumed the duty II took the ship
pers only a few hours TO introduce evil
dence. but an imposing mass Of statistics
and testimony went into the record for
tho railroads The shippers we're repre-
sented by a number Of attorneys, who con.
fined their efforts largely to attacking the
railway evidence. rather than to introduce
original testimony for themselves.
Advance Merely Opener.
Railway men admitted that the advanc,
In rates on the fifty commodities which
formed the basis of the hearing was merely
an entering wedge, the ultimate purpos,
being to advance rates all along the line
According to the shippers the final effec
OF this policy would be to place tax O
SiOcOOO,0O0 on the consumer.
IN n general way the argument presented
BY the railroads was that Increased rate
were necessary for the following reasons
Increased wages 20 employees; increases
cost OF maintenance and operation; ant
puulic demand for increased efficiency an,
expansion OF transportation facilities"
The position taken by the shippers wa
that tne railroads at present are receivin
generous return on their actual invest
ment and among other things sought t
show on cross-eXamination that the 10y
rate OF earnings shown in the statistic
presented was due more to over-capitallza
tion than TO low rates.
During the examination today OF stanle
H. Johnson, assistant freight traffic mar
oger OF the Rock Island road. Commii
uioner Lane asked some pointed question:
johnson Is Questioned.
Il have found IN my experience" he SAT-
that railroads find very little difficult
IN raising rates without much jusuficauo
and at any time that they may see Fl
~ there were no restraint placed on II
railroads could not the roads advance Il
rates without end?'
"Of course, II the railroads were utterl
tn a nd Uya N
body Of fair-minded men, the rat'
might be raised endlessly, but this wou
not be done, as the roads only ask
fair profit" replied MIR. Johnson.
Ta Il not a fact" asked Commission
Lane. that deep down IN the mind OF Il
traffic manager he knows that even Il
present rate Is too hlgh7'
This brought a laugh from the crow
during which the witness replied In Il
negative.
In the course OF his testimony Mr.. JON
son admitted that nc. general advances
rates we're made by the railroads witho
agreement with their competitors.
IT they did." he added, 1t wou
mean going out OF business"
Attorney Ellis, representing the Chioas
Milwaukee a st. Paul railroad, introduo
tables showing the effect which the pF
poaed advances would have on traffic
South Dakota and North Dakota. +
tables showed the increases on 1.6SA671l
bushels OF wheat, ciarse grain and 9th
mill products would amount to E45,6
His tables showed that nearly half
the proposed advance which on All col
modiues he estimated at S56S,OOO woJ
come out OF the pockets OF the farms
OF the two Dakotas. Mr. Ellis deolar
that lille railway rates have been star
ing still the farmer has been eani
$50 per acre more from his farm. I
road, he declared. is asking only an
crease Of rs cents per acre In freil
charges on farm products.
That's not SO bad" said The witne
we helped the farmer 10 get that s.
and for our share we ask only lS cents.