New-York tribune., 1910-11-02
RATE EVIDENCE ALL IN
Arguments in Noted Case Will
Be Heard at Washington.
HEARING AT CHICAGO ENDS
Commissioner Lane Asks Pointed
Questions of Rock Island
Railroad Official.

Chicago, Nov presentation Of evidence
in the rate hearing before the Interstate
Commerce Commission was concluded this
afternoon Arguments on the evidence will
be heard by the commission al Washington
on December A. and after due deliberation
the commission viii announce what il is
generally considered viii be the most i'm
portant decision ever emanating from il
The hearing was Instituted at the in
stance Of shippers who arose in protest
when Western railroads announced that
rates on fifty different commodities would
be advanced. Opposition 10 this became
general and the railroads agreed not to put
the new rates into effect until the Inter
state Commerce Commission mad conducted
hearing at which the shippers should he
heard as 10 the fairness of the proposed
advances
Hearings were held at Chicago and New
York, conducted al first by an examiner
but later, owing 10 the paramount i'm
portarce Of the case. Commissioners Clark
and Lane assumed the duty. II took the
shippers only a few hours TO introduce evi-
dence, but an imposing mass Of statistics
and testimony Went into the record for the
railroads. The shippers We're represented by
q number Of attorneys who confined their
efforts largely TO attacking the railway
evidence rather than to introducing original
testimony for themselves
Railway men admitted that the advance
in rates on the fifty 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 shippers the final effect of
this policy would be to place a tax Of
so, ,0o0 90 on the consumer.
In a general way the argument presented
by the railroads was that increased rates
were necessary for the following reasons:
l Increased wages to employees
2. Increased cost of maintenance and
operation
g. Public demand for increased efficiency
and expansion OF transportation facilities.
The position taken by the shippers was
that the railroads at present are receiving
a generous return on their actual invest
ment, and among other things sought 10
show on cross-examinatiOn that the low
rate OF earning shown in the statistics pre-
sented was due more TO overcap apitaIizatiOn
than to low rates
During the examination to-day Of Stan
ey Il. Johnson. assistant freight traffic
manager OF the Rock Island road, Com
missioner Lane asked some pointed ques-
tiCns.
Il have found IN my experience" he said
that railroads find very little difficulty in
raising rates without much justification and
AZ any time that they may see 1t. If there
We're no restraint placed on the railroads
could not the roads advance the rates with
out end?"
''Of course, if the railroads were utterly
Indifferent 10 public opinion and were not
body of fair minded men, the rates might
be raised eudlessly; but this would not be
done. as the roads only ask q fair profit,
replied Mr.. Johnson.
rs it not fact" asked Commissioner
Lane. that deep down in the mind of the
traffic manager he knows that even the
present rate is too high"
This brought a laugh from the crowd.
curing which the witness replied in the
negative.
In the course Of his testimony Mr. John
son admitted that no general advances in
rates We're made by the railroads without
agreement with their competitors.
If they did" he added. 1t would mean
going out OF business"