Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-01-03
HIGHER STANDARDS
Of EFFICIENCY
SOLUTION
ADVICE TO RAILROAD
MEN FROM BRANDEIS
No Need of Increased Freight
Rates if Internal Leaks are|
Stopped Declares Attorney
for Shippers,

fBy Morning journal Special Leased wifel
Washington, Jan.2.--Higher stand
ards of efficiency. not increased
freight charges, are tho paramount
needs today OF American railways.
This proposition Is the essence of
the brief filed today with the inter-
state commerce commission by Louis
Brandeis of Boston, counsel for the
traffic commission of commercial
organizations of the Atlantic seaboard
in the Investigation of the commits
sion In the proposed advance in
freight rates in official classification
territory--that part of country east
of the Mississippi and north of the
Ohio and Potomac rivers.
Railroad managers. Mr.. Brandeis,
contends, In an effort to meet exist
ing needs should not look without.
but within.
III their credit is impaired, the pro-
per remedy Is not to apply the delu-
sive stimulant of higher ~nteH but
to strengthen their organizations by
introducing advanced methods and
eliminating questionable practices.
Thus they will maintain credit by
deserving It."
The proposed advances by the lines
I in official classification territory
would affect only class rates. The
total freight tonnage of the lines for
the calendar year 1910 was 626,321,-
1875. Less than eight per cent Of this
moved under class rates yet of the
freight revenue OF these railways for
1909 nearly 22 per cent ($103,271. S23)
was derived from class rates. These
rates govern In the shipment Of 1000
articles of commerce Including most
of the necessities of life and articles
of cometitive commerce. The pro-
posed increases vary from eight per
cent to twenty-nine per cent averag-
ing approximately 16 per cent.
Mr. Brandeis indicates that he con-
siders the great question involved in
the Investigation to be statement of
President Willard of the Baltimore a
Ohio that the tendency Of rates will
be to continue upward'----that Ia that
there will progressive increase in
rates.
The law places the burden of proof
|of the reasonableness of the proposed
advances upon the railroads. Mr..
Brandeis maintains that the roads
have failed utterly 10 sustain their
burden Of proof; have failed SO COM
pletcly that the application of the
railroads for approval OF the new
tariff should be denied.
In response to the contention that
the proposed increase in class rates
that no evidence was presented to sus-
tain that contentious: that no increase,
in any class rate property can be made
without giving the shippers an OPP
portunity to be heard and that the
pending increases were fixed with
out affording the shippers such an
opportunity.
As to the arguments that the rail-
roads need additional revenues on ac-
count of required increases in wages,
Mr. Brandies submits three PROPOSE
tions.
First, some railroads at least do
not need additional income.
Second, In some railroads any exist
ing need of additional incomes Is due
to causes other than wage increases
or acts of congress.
Third, every railroad which Is pro
pcrly undertaken and financial can
meet any existing needs without rate
increases, though the Introduction OF
scientific management.
In support of these propositions,
facts and figures from official reports
of the railroads themselves are cited
by Mr.. Brandeis.
The contention of the railroads that
greater income is imperative in order
to secure needed new capital for ex-
tensions and improvements. Is
met by the assertion that III the cre-
dit of American railroads Is In any
N ri nd ~ n tet1S Sat.t In
due either to the unwarrantable at
tacks made upon It by the railroads
and their associates, or to their In
dlvidual mismanagement, and that It
Is not the result of any necessary in.
crease In operatin~ expenses or OF
government regulations"
AS another for the impairment of the
credit of raiIroads---if such an i'm
pairment exists--it is pointed out that
the car repair graft of the Illinois
Central. the embezzlement Of the
treasurer of the Big Four. the graft
ON the Pennsylvania and Baltimore
4 Ohio, the Chicago & Alton scandal,
following the great insurance scandals.
necessarily shake confluence, par
ticularly as the controlling financial
powers are largely the same in the
railroads and the insurance COM
panies.''
II any general distrust OF railway
investment exists. its cause will be
found not In the increased burdens
imposed by wage advances or by gov
eminent regulation. but in dIstrust
OF the purposes and judgment of those
who control and manage the great
railroad properties"
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