Los Angeles herald., 1910-11-26
Railroad Lawyers Fear to Cross
Examine Youthful ECono-
mist Who TeStifieS
COST FALLS ON CONSUMER
Chicago Expert Shows How the
Manufacturer and Retailer
Put Increase on Buyer
ASSOCIATED Press)

WASHINGTON, Nov. 25.-A Balti-
more economist, still in his teens, took
the stand at today's session of the rate
increase hearing before the interstate
commerce commission. Henry c. Bar
lew of Chicago. director of the Chicago
Association of Commerce, and former
president of the Evansville q Terre
Haute railroad, and traffic manager OF
the Wisconsin Central Ezra e. VIII
hanson of Cincinnati, commissioner OF
the Receivers and Shippers associa-
tion of that city, for sixteen years as
scciated with the Queen & Crescent
route and B. b. Burgunder of Baltl-
more, 10 years old, whose command OF
railroad stock statistics headed off
GLOSS examination, were the days Wit
resses
Burgunder was put on the stand to
testify as to his own statistical COM
pu,dtioIs concerning the rights of
stockholders" Within minute ne
had the members of the commission
poring over copies of his tables and all
the counsel listening to his analytical
interpretations of the figures.
Mr. Barlow believed in horizontal in
crease in rates, If any were necessary,
which he was not willing TO concede,
He thought iron ard steel and coffee
and sugar should help bear the burden
that the carriers purposed to place on
the public.
ALLEGES DISCRIMINATION
Mr.. Barlows position was that the
increases were discriminatory and that
the shippers of those articles which
We're affected by the increases had al
ready paid their pound of flesh.
He said the railroads seemed to have
selected such commodities as they
wished, had left other tariffs un-
changed and had made some reduc-
tions. He said the railroad plan put
the entire increase on only 10 per cent
of the freight tonnage, while the pre-
text of meeting wage increase applied
to 100 per cent of all tonnage.
He declared the proposed advance
put A per cent of the burden on the
first-class freight snd that substan-
TALLY 75 per cent of the burden rested
on shippers of first, second and third
classes of freight.
Mr.. Barlow's declaration that any
increased freight rate always fell on
the consumer was questioned by Chair
man Knapp, who asked the witness
how he figured that an increase of less
than five mills on a pair of shoes
when the increase of freight rates
promised general prosperity would be
reflected on the price of shoes man
wore.
HOW CONSUMERS PAY
Mr. Barlow said that when a manu-
facturer shipped 100000 cases of shoes.
probably on or per cent profit, and
a 15 per cent rate increase was i'm
posed on him he probably would raise
his price 10 cents a pair. Then the
retailer would increase the price to the
consumer.
While discussing the packing house
products rates Mr. Barlow again
brought the name OF George w. Per-
kins of the j. p. Morgan company of
New York into the argument.
Mr.. Barlow said he understood Mr..
Perkins agreed with the packers on an
advance of only one-half of what had
been proposed.
did he purport to represent the
railroads, the beef shippers or anyone
else?" demanded Frank Lyon, attorney
for the commission.
''I don't KNOW" replied the witness.
'I am told Mr.. Perkins came as
representative of Mr.. Morgan as
peacemaker between the packers and
the railroads.