The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1910-11-22
EFFICIENCY I IS !.
GREATEST NEED
Shippers Attorney Scores
. Rail Management.
RATE INCREASE OPPOSED

Louis II. Brandeis, in Argument Be-
= fore Interstate Commerce. Commits
e sion, Declares Proposed Advances
Are Neither Just Nor Reasonable
and~That Incomes Gould Be In,
, creased by Scientific Management
of Properties. -'.~.
Washington, Nov. 22.-The struggle
between the railroads and the ship.
pers over proposed sweeping advances
in freight rates by the Eastern trunk
lines was resumed before the inter.
state commerce commission, the ship.
pers occupying the field. The bearing
comes over from last month, when the
railroads rested their case.
The case primarily affects several
thousand articles embraced in. what
are known as class rates, moving an
immense traffic through the official
classification territory, the sweep OF
railroad domain that embraces New
England, the Middle states and over to
the Illinois Indiana line and north OF
the Ohio and Potomac rivers. But the
hearing may extend to wider scope.
Horizontal increases proposed in the
tariffs on all these articles of freight
are urged by the railroads as neces-
sary to enable them to secure great
or net income for dividend and i'm
provement purposes, al need that the
railroad magnates charged up to
drains on operating revenues mainly
through recent wage increases on
their lines and legitimate burdens. -
Says Roads Lack in Efficiency,
4 The opening statement of Louis D.
Brandeis, counsel for the traffic CON-
mittee of the commercial organizations
of the Atlantic seaboard, told the story
of the alleged injustice of the suspend
ed rate advances. when the interstate
commerce commission resumed it's
hearing of the subject of the increases
proposed by the Eastern trunk lines.
Mr.. Brandeis said the proposed rate
increases were neither just nor reason
able and that greater, efficiency would
yield greater income to the railroads.
He commended for, scientific manage
ment of the roads and said the rail-
roads should cooperate to reduce costs
instead tof combining to increase rates..
He described what he said was the
huge field for the application of scien.
tific management and the rich fruit in
economies and improved service,
which may be expected to result from
economies which have been estimated
as aggregating more than million dol.
lars a day. Wy ~ - -
- Urges Further Investigation. eS-.
He stated that scientific manage
cment demands preparedness and de
tailed analytical study, that both en-
ployers and employed gain and it does
not Involve capital expenditures. While
he promised evidence that huge econo.
mics in railroad operation, are possible
he said that the pending increase il
freight rates should not be approved
until the subject should have been fur,
ther. and more. fully investigated by
the interstate commerce commission
on it's own initiative. He urged such
an independent Investigation because
much valuable evidence will be avail
able to the commission which is not
available to the shippers, including
some experiments in scientific man.
agement by the roads. -.
" He combatted, the railroad conten-
ton that new source of net income
through increased freight rates must
be found and submitted as no such
need had been shown to exist. In in
stances where such actual need may
appear he said it has resulted not
from the fact that the present rates
are too low, but that the management
has, through reckless expansion or
other waste, and through financial in
efficiency, impaired the financial con-
dition of the roads and that the bur
dens so arising should be borne by
the stockholders through reduction of
dividends and not by shippers and
consumers through increases in freight
rates.
Many school children suffer from
constipation, which is often the
p I Z tE.. g. a Z