Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-11-21
SPEAKS FOR THE SHIPPERS
Says Greater Efficiency Would Give
Roads More Revenue.
JRGES IMPROVED
Hearing Resumed Before the Inter
state Commerce Commission.
Will Continue This Week.

the shippers over the proposed sweeping
advances in freight rates by the eastern
trunk lines was resumed before the inter-
state commerce commission today, the
shippers occupying the field. The hearing
came over from last month. when the rail-
roads rested their case, which constitutes
one OF the most important rate battles
ever fought out before the commission
The case primarily affects several thou
sand articles embraced in what are
known as class rates, moving as an i'm
mense tranic through the Official efassi-
flcation territory, the sweep Of railroad
domain that embraces New England. the
middle states and over to the Illinois-In-
diana line and north Of the Ohio and Po-
tomac rivers. But the hearing may ex-
tend to Q wider scope. There are horizon
tai increases proposed in the tariffs on all
these articles Of freight, urged by the
railroads as necessary to enable them to
| secure a greater net income for dividend
and Improvement purposes, a need that
| the railroad magpates charged up to
drains on the operating revenues mainly
through recent wage increases on their
lines and legislative burdens.
Opposition Of Shippers.
The shippers attack tho wholesale adj
vances as unjust and unreasonable and
| through their representatives have mar
shaded q mass Of testimony to be pre-
| scented to the commission by witnesses
| during the hearing, which will continue
| through the week. The shippers are anx-
| tous that, in addition to the present pro-
ceeding, the commission conduct an in
dependent investigation to bring out the
| Of their own initiative. While the hearing
| is fixed for consideration Of the eastern
trunk line increases, there are also in
creases proposed in the Illinois freight
committee territory, and the eastern trunk
| line and trans Missouri territories.
Statement by Louis D. .Brandeis.
| Louis D. Brandeis Of Boston, Mass,
| who was. the attorney for Louis CLAWS,
| the dismissed land Office special agent in
| the Ballinger-Pinchot investigation. is the
counsel for the eastern shippers. Mr..
Brandeis had many witnesses ready to
| take the stand to testify concerning the
conditions In the east, and this testimony
was arranged Immediately to follow his
statement.
Mr.. Brandeis declared in his opening
statement today that the proposed rate
| increases were neither just nor reasona BILE
and that greater efficiency would Yield
| greater income to the railroads. He con-
| tended for scientific management Of the
4
operate to reduce costs instead Of COM
bining to increase rates. He described
what he said was the huge field for the
application Of scientific management and
| the rich fruit In economies and improved
| service which may be expected to result,
economies which have been estimated as
aggregating more than a million dollars
day.
No Need for Increase Shown.
He combated the railroad contention
that new source Of net income through,
| Increased freight rates must be found and
submitted that no such need has been
shown to exist In instances where such
| actual need may appear, he sa3d, It has
resulted not from the fact that present
rates are too low. but that the manage
| ment has, through reckless expansion or
other waste. and through financial inef-
| f1ciency, impaired the financial condition
Of the roads. and that burdens SO arising
| should be borne by the stockholders
shippers and consumers through increases
in freight rates.
| Nh. Brandeis referred especially to the
testimony Of Presidents McCrea OF the
and Ohio. and Brown Of the New York
Central and Vice President Stuart Of the
| Erie.
Mr.. Brandeis charged that the proposed
| horizontal increase in class rates would
| burden the small producer and consumer
| that it makes arbitrarily a sweeping
change Of long-distance rates which have
| largely been in effect for nearly q genera
| ton. that the changes are made without
| evidence whether the existing rates are or
are not amply compensatory. that the
changes affect more than 1900 different
articles made without adequate investiga-
! ton into the effect upon the particular
| industries to which they apply and that
/ the changes involve grave injustice, dts
| eliminating unreasonably in favor of arti-
| to some extent discriminate in favor Of To-
| cal traffic.
Urges Scientific Management.
Even If the railroads need additional
net income and some raise in freight rates
| were a proper means. he argued. the COM
| mission should not approve the particular
| tariffs now under consideration. He said
he offered the gospel Of hope as against
| the railroad presidents declarations Of de-
spair involving a vicious circle Of ever
| increasing freight rates and ever-increas-
| ing cost Of living.
| He declared that under scientific man
agerf1ent the errors would be prevented
instead Of corrected, delays and accidents
| avoided and calculation substituted for
| guess, and that much OF the economy
would fiow from a fuller use Of plant and
equipment and the lesser employment of
working assets. rendering additional cap
ital investment unnecessary. He urged
and unloading freight, warehousing and
| accounting, to reduce expense and con-
gestion OF materials.
Brief Filed by w. A. Glasgow.
william A. Glasgow. jr., Of Philadel-