The Birmingham age-herald., 1910-11-02
RATE EVIDENCE
 IS CONCLUDED Commission Will Announce
 Decision Later ARGUMENT FOR RAISE
Position Taken by the Shippers Is That the Railroads Are Ut Present Re- ceiving a Generous Return
 for Investment

Chicago, November 1.-Presentation of
 evidence of the rate hearing before the
 interstate commerce commission was con-
 evidence will be heard by the commls-
 sion at Washington on December IA
 and after deliberation the commission
 will announce which 1t is generally con
 sdered will be the most important de-
 cision ever emanating from it.
 The hearing was instituted at the in-
 stance of shippers, who arose in protest
 when western railroads announced that
 rates on 50 different commodities would
 be advanced. Opposition to this became
 general and the railroads agreed not to
 put the new rates into effect until the
 interstate commerce commission had con-
 ducted 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 ex-
 aminer, but later, owing to the import
 ance of the case, Commissioners Clark
 and Lane assumed the duty. It took the
 shippers only a few hours to introduce
 evidence.
 Railway men admitted that the advance
 in rates on the 50 commodities which
 formed the basis of the hearing was
 merely an entering wedge. the ultimate
 purpose being to advance rates all along the line. According to the shippers the final effect of this policy would be to place tax of $400,000000 on the con- sumer.
 Reasons for Rates In. a general way the argument pre- sented by the railroads was that in- creased rates were necessary for the fol- lowing reasons:
 l. Increased wages of employees 2. Increased cost of maintenance and operation.
 g. Public demand for increased efficien- cy and expansion of transportation fa- cilities.
 The position taken by the shippers was that tho railroads at present are receiv- ing & generous return on their actual investment and among other things
 sought to show, on cross-examination, that the low. rate of earning shown in the statistics presented was due more 1 to over-capitalization than to low rates. In the examination today of Stanly P. Johnson, assistant freight traffic man. ager of the Rock Island, Commissioner Lane asked some questions. nave IOunQ III lily 6APCiiOAfSo, 'iS
 said, that railroads find very little diff ficulty In raising rates without much jus-
 tlication, and at any time they may see
 fit. If there were not restraint placed on the railroads could not the roads ad-
 vance the rates without end?''
 ''Of course if the roads were merely in-
 different to public opinion, and were not
 body of fair-nlinded men. the rates might be raised endlessly, but this would not be done as the roads only ask a fair
 profit" replied MT. Johnson. Present Rates High .Is 1t not a fact" asked MT. Lane. that deep down in the mind of the traf- fix manager he knows that even the pres- ent rate is too high?"
 This brought laugh from the crowd during which the witness replied in the negative.
 In the course of his testimony MT. Johnson admitted that no general ad- yances in rates were made by the rail- roads without agreement with their com petitors
 If they did" he added, 'it would mean going out of business
 Attorney Ellis, who represented the Chi cago. Milwaukee and St. Paul railroad, introduced tables showing the effect which tine proposed advances would have on traffic in South Dakota and North Dakota The tables showed that the in- creased revenue on 1,6S4667s00 pounds or wheat, coarse grain, flour and other mill products would amount to $245,676. His tables showed that nearly half of the proposed increase which, on all commod- ities he estimated at $56S. .0oo would come out of the farmers of the two Dakotas. Mir. Ellis declared that while railway rates have been standing will the formar
 has been earning $s.50 more per acre from his farm. The road, he declared. is ask
 ing only an increase of 18 cents per acre for freight charged on farm products.
 '.Thats not so bad said the witness.
 we helped the farmer to get sS.5O and
 for our share we ask only IS cents