Los Angeles herald., 1910-06-04
MANUFACT
PLEAD FOR AID
IN RATE FIGHT
Railways Threaten Panic Unless
They Are Permitted to In
crease Charges
HELP PRESIDENT TAFT, IS CRY
Illinois Association Demands That
Commerce Commission Shall
Have Jurisdiction
Associated Press1

~ HICAGO, June 3.-Simultaneous
appeals to the people were made
~ here today by the western rail-
roads and by the Illinois Manufactur-
ers' association.
The railroads submitted their brief to
1.-The man in the street" and the
farmer, predicting hard times if the
roads are not permitted to increase
their rates.
The manufacturers tell the people not
to be deceived as there is no danger
of panic, and laud President Taft for
his action in obtaining the injunction
halting the proposed raise.
On behalf of the railroads, SlasOn
Thompson, head of the railroad pub
licity bureau, put forward -four rea-
sons why railroad rates must be
raised
According to Mr. Thompson the roads
in the last two years are 1920, 100000
behind on maintenance; they paid
$3.50, 100000 more annually for labor;
they paid $10,000,000 annually for inter-
est; they lost $25,0000 600 annually on
passenger traffic, with the result that
they are $73O,OOO,0 900 to the bad in two
years.
BANKRUPTCY Is CRY
Railway rates must be advanced be-
cause many companies face bank
ruptcy if they are not" said Mr.
Thompson. This is q result which
the injunction granted at Hannibal, on
a side issue, irrespective of the justice
of the advance, on eX parte represen-
tation. without notice and without
proper weighing of the consequences,
may expedite but is powerless to en-
join. Why this is so may be briefly
stated in terms that the man in the
I~al,af hn
farm can understand and appreciate.
In the end it is this man in the street
who must bear the brunt of any dis
aster that befalls the American rail-
way system"
Then, for the benefit of the man in
the street, Mr.. Thompson quotes rail-
road statistics as far back as 1897 to
prove the contention that the roads
face ruin unless rates are raised. These
statistics will be printed in pamphlet
form and widely distributed.
SHIPPERS DECEIVED
Mr.. Thompson declares the shippers
have been grossly deceived ana
charges the Associated Shippers bu-
reau of Cincinnati with practicing the
deception.
For more than twenty years." de-
clared Mr.. Thompson, the charge has
never been made seriously that aver
age freight rates on American rail-
ways were unreasonable.
ION the contrary, it is the testimony
of all investigators that they are the
lowest in the world. If they have been
reasonable for twenty years and the
service is more costly now than ever
it is self-evident that any advance
low cannot make them unreasonable y
The manufacturers resolutions
charge the officials of certain roads
with being in concerted movement
to make the people believe the ship
pers and consumers are making un-
fair demands and that another tinan-
cial crisis is impending. The manu-
facturers call upon the people to hold
up the hands of the government and
demand that the whole question of ad-
vance or reduction in rates shall at
this time, and at ell future times, be
presented to the interstate commerce
commission for final adjudication.