New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-13
EXPLAIN FREIGHT RATES MARDI GRAS UNDER WAY
Thayer and DAILY Testify at the
Interstate Commerce Hearing.
HENEY SPRINGS SENSATION
Says Shippers Demand Thorough
Probe of Dishonesty, Waste
and Overcapitalization.

ana OVerC2p1Ldl1ZdtIO
AS was expected. the counsel for shippers
refused yesterday TO cross-examine railroad
officials at the hearing being held by Elk
aminer Brown, Of the Interstate Commerce
Commission. al the Waldorf, TO determine
whether the freight rate increases shall
stand until the figures promised had been
submitted But there was great deal of
Information bearing on the subject in the
testimony of the principal witnesses of the
day, John r Thayer. third ce-president
of the Pennsylvania. and Q. F. DAILY. vice
president of the New York Central lines
In the course of the proceedings it was
learned that the general shipping interests
represented al the hearing are determined
TO bring out testimony to show that the
railroads are overCapitalized. and then 10
insist that the commercial world shall not
be held up TO pay dividends on watered
stock. This will drag the hearing out far
beyond the time expected. if carried out
Mr.. Thayer said that the increase in
rates made by his road the Pennsylvania,
was only about 100000, or about % per
cent of the gross earnings Advancement
of rates was nothing new on his road, he
declared. this being necessary from time TO
time to meet contingencies
Wages Increase with Earnings
In the dull times of the COS said Mr..
Thayer, matters were permitted 10 remain
at a dead level When the business began
10 improve, in 1900 and the period follow
ing, earnings began TO jump. and then the
men demanded and got Increased wages.
There was another period of quiet and
another wage raise in 1906. but in 1907 the
road did nothing, nor anything the next
year, but the matter of advancing the
freight rates was always under considera-
ton. The last increase in wages made ad-
vaneement in freight imperative. ha said.
As TO the increase of passenger rates, Mr.
Thayer said that the laws of the several
states made it difficult to tell just what
could be done. He gave figures for the
consideration Of the commission and the
counsel for the shippers, when Frank Lyon,
special counsel Tor the commission. cross
examined him.
Mr.. Thayer declared that in order TO meet
the demands of the shippers for quick ser
vice the freight department Of the road
had to keep the service almost up to pas
senger conditions. He said that the ad-
vance IN rates was due entirely TO the
comparatively recent increase in the gen
eraI wage scale on his line
This statement was modified by the lines
counsel, who INTERCEPTED that there were
conditions. Irrespective Of the wage adj
vance, that justified the freight Increase.
but that the wage advance made the in
crease imperative
Mr.. DAILY, Of the New York Central. who
followed Mr. Thayer on the stand. said
that his road had considered the freight
rate increase only since 1905. He said that
the wage advance was followed bv ! de-
mand from the mana cement that the rates
for freight be increased at once. and then
when 1t came TO applying il it was decided
10 apply the increase 10 the class goods
emitting the commodity goods altogether.
Never Properly Adjusted.
The rate fabric of the country. Mr.. Dalv
said, could he Hkened to a crazy quilt It
had never been properly adjusted. but had
been made 10 meet conditions as they hap
pened to arise. The witness declared that
the New York Central should receive far
more returns than at present, not for
larger dividends he FASTENED 10 say, but
10 meet the costs of operation and to make
the improvements the public demanded
Financial statements were submitted by
the New York. New Haven & Hartford
and the Boston & Maine. The Lacka wanna
line also sent in a report.
When the counsel for the shippers took
up the question of more information be-
fore crosS-examining the witnesses there
was an animated discussion, which brought
from Examiner Brown a declaration re-
gaTding the commission 5 position in the
investigation. He said that all criticism at
the time of the manner in which the rail
roads we're presenting their defence was
out OF place Mr.. Brown continued.
When they have submitted what they
call their entire case in Justification or
these particular advances which are IN
der investigation. then YOU can present
the question OF whether there should not
be some further CrOSs-examlnatiOn of the
witnesses they have presented. based upon
the statistics and tables which they have
filed. and I think it will lead to expedi-
ton. think II will lead 10 a development
Of the true situation just exactly as we all
want"
There was quito a furry when W D
Henev. Of Chicago, who arrived TO repre-
sent the Illinois Manufacturers Associa-
ton. after saying that his association was
not fighting the railroads or seeking 10 de
prive them Of anything due them de-
along lines including decentralization
promotion. dishonesty Of construction dis
honesty OF operation. negligence Of opera
ton and waste in the purchase of supplies
There We're other matters Mr. Henev
wanted to talk about, but the examiner
Mr.. Brown. said that the hearing should
be permitted 10 proceed in its regular or
der The adjournment was taken until this
morning.