The Birmingham age-herald., 1910-12-01
TESTIIl 8# NEARLY
 EEIlS ' RATE CASE shippe tinue To Protest
 Advances MANY THE STAND Iowa M lres That Net Earnings of Is Have Increased han Their General
 Expenses
THE STAND

was November 30.-1he teStf- mony ...s eastern trunk line advance case was virtually concluded by the in- terstate commerce commission today. after many witnesses for the shippers had agreed that the proposed increases would localize competition, hurt the west ern market for eastern goods and other wise seriously interfere with their busi- ness The pending suspension of the pro- posed advances Is until February l next and in the meantime, on January g, the arguments of counsel will be made and the commission may be prepared to rem der it's decision by the expiration of the present extension.
 Some perfunctory testimony tomorrow will close the evidence. The proceeding is one of the most important evar un- dertaken by the commission, involving increases of s27.O0O,OOO and upwards in the section east of the Mississippi and north of the Ohio and Potomac rivers.
 Protests Supported
 There was steady run of witnesses today in support of the shippers protests. They included heads of the Westinghouse Air Brake company, the Railway Busi- ness association, American Locomotive company, shoe and leather. drug, cotton piece goods and other enterprises. Cliff ford Thorne of Washington, Ia., state railroad commissioner-elect, counsel for the Corn Belt Meat Producers associa- ticns and the Farmers Grain Dealers association contended that in four states alone, covered by an exhaustive investi- gstion he had made, the railroads had over-capitalized by S4OO,OoO.o0O. This was based on statistical summary of the actual physical valuation of 135 proper ties having a combined capitalization of more than $1,o0o,0000o0.
 Mir. Thorne contended that railway net earnings have been increasing faster than their expenses and that the credit of the roads was good He urged that tfe only proof offered by the railroads to support their argument of credit impairment was that they could not make the per cent bonds at par. an inability which he re- garded as by no means indicative of bad credit He said railway securities are more desirable today than five, ten, fif- teen or twenty years ago. and command higher market prices than other public utility or industrial companies.
 Consolation offered
 fTell your troubles to the commission was the only consolation President John | S. Lawrence of the Lawrence company of Boston and New York testified he re- ceived from the railroads when he tried | to talk to them about the advances which meant $70G00 increased cost annually to his cotton piece goods selling agency business.
 Edwin F. Fobes of Boston, candy man ufacturer, contended that candy is ne cessity and not a luxury Attorney But terfeld, for the New York Central lines, forced him to say that he saw no reason | why sugar, unaffected In the proposed ad- vance and a big factor in the candy busi- ness, should not bear it's fair share of the increase He said the increases would l take off half of his quarter of cent profit on the and S-cent-a- pound candy, and that in the east his candy goods iobbed at B cents and 40 cents pound were sold by retailers at from 50 cents to | S1. 50 a pound. Charles l.. Schwartz of St. | Louis. representing the National and | Western associations of shoe wholesalers, testified that increased cost would be put upon the dealers and that it would ulti- mately reach the consumers on certain medium and low grades of shoes. He | referred to the old rebate ''plums which the railroads gave favored Shippers for 1T or IS years until the Hepburn act stopped these secret practices.
 Any of these rebates still existing? |
 "No. 1 wish there were under certain conditons.
 .It is surprising to me-" continued MT. | Clements, ito find now how extensive these rebate practices used to be when II was so hard then for us to find them l at al''
 | Many other witnesses from Boston, | Worcester. Philadelphia and elsewhere added 10 the complaints of Injustice or. | the increases.
 Purpose of Organization George A. Post of New York; president of the Railway Business association, tes- fIfied that the main purpose of his or | ganization was to promote friendly rela- | tons between the railroads and public. | We have learned in the past two or three years said he that conservative talk | Is better than vitriolics. We are organ | ized good humor. not organized gloom. | MT. Post said the purchases of the rail- roads had diminished very markedly in