Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-11-02
Arguments at Rate hear-
ing to Begin Dec, "A.
Decision Of Commission Win
Be Important One.
Pointed Questions Asked at Ex.
animation at Chi cage.
HnIIc

Chicago, Nov presentation or
evidence in the rate hearing before
the Interstate Commerce Commission
was concluded this afternoon. Argu-
ments on the evidence will be heard
by the commission at Washington on
Dec. IA and after due deliberation,
the commission will announce what
it is generally considered will be the
most important decision ever emanat-
ing from it. The hearing was in
stituted at the instance of shippers
who arose in protest when Western
railroads announced that rates in so
different commodities would be ad-
vanced.
Opposition to this became general
and the railroads agreed not to put
the new rates into effect until the
Interstate Commerce Commission had
conducted hearing at which the
shippers should be heard as to the
fairness OF the proposed advances.
Hearings We're held at Chicago and
New York, conducted at first by an
examiner, but later, owing to the
paramount importance of the case.
Commissioners Clark and Lane as
sumed the duty 1t took the ship
pers only a few hours to introduce
evidence, but an imposing mass of
statistics and testimony went into
the record for the railroads. The
shippers were represented by num-
Der of attorneys who confined their
efforts largely to attacking the rail-
road evidence rather than introducing
original testimony for themselves
Railroad men agreed that the adj
vance in rates on the so commodities
which formed the basis for the hear
ing 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 a tax of
S400,O0o.OO0 on the consumer. In
general way the argument presented
by the railroads was that increased
rates We're necessary for the following
reasons:
Increased wages to employees.
Increased cost of maintenance and
operation.
"-Public demand for increased etff-
cheney and expansion of transporta-
ton facilities
The position taken by the shippers
was that the railroads at present arc
receiving generous return on their
actual investment and among other
things sought to show on ross-exam-
ination that the low rate of earnings
shown in the statistics presented was
due more to over-capitalization than
to low rates
During the examination today OF
Stanley II. Johnson, assistant freight
traffic manager of the Rock Islano
road. Commissioner Lane asked some
pointed questions.
Il found in my experience" he said.
that railroads find very little difficult
ty in raising rates without much JUS
tification. and at any time that they
may see fit. If there were no restraint
placed on the railroads could not the
roads advance the rates without eYid?'
"Of course if the railroads were Ut
teily Indifferent to public opinion and
were net body of fair minded men.
the rates might be raised endlessly but
this would not be done as the roads
only ask a fair profit" replied Mr..
Johnson --
rs it not a fact" asked Commis-
sioner Lane. 'that deep down in the
mind of the traffic manager he knows
that even the present rate is too higho'
This brought laugh from the crowd
during which the witness replied in the
negative.
In the course Of his testimony, Mr..
johnson admitted that no general ad-
vance i'll rates were made by tine rail-
roads without agreement with their
competitors.