Omaha daily bee., 1910-09-01
Defense to Seek to Compel Shippers
to Show Profit.
ROCK ISLAND HEARING NOW VI
Melcher Tells of Increased Expenses
In Recent Years.
INCREASED WAGES BIG ITEM
Second Vice-President Says system
Does Not Get More Efficient Labor
BY Reason of Higher
Pay Check.

CHICAGO. Aug. 3i.-Colncident with the
closing Of the testimony for the Santa Fe
system before. the special examiners for.
the Interstate Commerce commission, and
the statement from the roads statlstician
that the Increases in freight rates asked
would net the Santa Fe only $4,000 in
crease yearly in earnings. there came to-
day a suggestion that the railroads now
on the defensive might change their tactics
and seek to compel the shippers, who op-
pose the advance in freight. rates, to de-
clare how much they profit on the differ
ent commodities under consideration.
request from Attorney f. j. Norton,
counsel for the Santa Fe, for the names of
the different associations of shippers
represented at the hearing. that he might
question certain of the shippers. gave color
to rports that shippers would be asked
about their profits. One prominent rail
road man declared that inasmuch that the
shippers had been protesting that the
profits of the railroads we're unreasonable
the railroads might we'll ask the shippers
what their profits are on the commodi-
ties affected by the proposed increase in
freight rates, so that the commission may
know whether they are or are not SER
iously disturbed by the increase which
they are fighting.
While no definite statement of such an
intent has been made, 1t win not be unex-
pected that the railroads before the hear
ing is over, will ask many questions of
shippers concerning their profits and the
rate of return which they enjoy on their
invested capital.
Hearing Transferred to Rock Island.
When the initial presentation of the con-
tentions of the Santa Fe system was con-
cluded. the hearing was transferred to the
Rock Island roads.
|, p. o. Melcher. second vice president Of
the Rock Island company told of the In
creased expenses Of the road in late years
due, according to him, to advances in the
wage scale and increased cost OF operation.
The first witness at the afternoon session
was w. A. Poteet, chairman of the Trans
Missouri Freight Bureau. He presented in
the form of a tabulation a compilation Of
the rates in effect in the territory west
OF the Missouri river on freight shipped
east or west. to or from common points in
Colorado and points west Of the Missouri
or the Mississippi rivers. The tables showed
both the class and commodity freight rates,
and included the years 1900 to 1910. Similar
compilations covering live stock and grain
shipment rates were also presented and
entered as exhibits.
Attorney John H. Atwood for the ship
pers questioned Mr.. Poteet, concerning the
method in which the rates were raised and
asked for the names of different represen-
tatives of the railroads, who were present
when the order changing the freight rates
was decided on. There was some opposi-
ton to the inquiry and Attorney Atwood
declared that the examiners were not en-
powered to exclud testimony.
The question was answered and Mr.. At
wood then asked II the railroad represen-
tatives on that occasion discussed or con-
sidered an injunction issued by the Fedora
supreme court In 1897. prohibiting any
agreement in rates to be charged by trans
Missouri roads. After much sparring BY
counsels and an impassioned address by ths
attorney for the shippers, the witnes!
answered that the injunction was not dis
cussed or considered. Examiner Brown de
cIared that the question was immateria
and had nothing to do with the case.
MeIcher Questioned 1t.
Vice President F. G. Mecher of the Rocl
Island company was questioned by Attor
ney w. s. Dickenson, attorney for the road
He offered in evidence a table showing
that increased wages ptid in the operating
department of the road amounted In 1876
and 1907 TO S52SOOO; in 1907 and 1908 to 81, S14.
600; in 1908 and 1909 to $i.S14,OOO; in 1903 anC
1910 to S1.451 900; and in 1910 and 1911 the es
tlmated increase would total $2,465,O 600 an,
In 1911 tnd 1912 the estimated lncreas
would be s2,612,OOO.
Mr.. Melcher said that in his opinion tn
| road does not get more efficient labor b.
reason OF the increased wages. Some o
the increases he said, were the result o
threatened strikes which were settled an
some were granted after arbitration.
THE argument advanced by the employe
in 1906 TO ran increase" he said, ''were tina
the roads were prosperous and the me
wanted chunk Of the prosperity. L
/ the latter pleas for advanced wages tn
men argued that the cost OF living had in
creased and for that reason demande
more money"