The Detroit times., 1911-02-17
'T0 DECIDE BIG
RAILROAD CASE
Interstate Commerce Commission
Will Soon Hand Down Ruling
In Rate Controversy.

WASHINGTON. d. c., Feb. 1.-THE
interstate commerce commission IL
about TO decide the first big test case
brought under the amended railway
rate law.
This is the most important case
| brought before The interstate COM
meree commission since the govern
ment began its attempt TO resula,e
the railroads, because It's decision VIII
determine whether the new law Is
really any check on the upward move
ment OF freight rates, and the conse-
ouent freedom of the railroads To I'M
pose taxes on he public without let
OF hindrance, as they please.
The railroads began their campaign
To defeat the law and get higher rates
Immediately after the passage OF the
latest amendment OF the Hepburn rate
law by showing up individual rates as
rates as rapidly as possible, ana theh
commanding a wholesale increase In
the most congested railway territory
in the United States, namely, the ter
ritory east OF the Mississippi river and
north of the Ohio and Potomac. The
Increase here was a preliminary step
TO increases In all sections or the
country. The following are the es-
sential facts of the case. What the
railroads ask:
/. The consent OF the interstate
commerce commission for the imposi-
ton of an added freight tax OF $27.,
l7l,444, which is approximately 10
FER cent increase on all freights car
ried In the territory above named. II
was admitted by representatives OF
the railroads that this was intended
as the beginning OF a progressive In
crease.
2. Rates high enough throughout
the country TO insure 6 per cent
dividend on all present railway capi-
talization, which amounts at the pres
emit time to $780, 100000 and which
would mean an addition to the pres
emit total of charges collected In
freights by railroads from the pro
ducers OF $450,000. 900 annually.
8. Increased revenues sufficient to
build extensions.
4. Increased revenues sufficient to
bolster up the impaired credit of the
railroads.
To this the shippers and the public
the latter represented by Louis ID.
Brandeis as unpaid counsel-have re-
piled.
/. The proposed increase OF rates
Is an unnecessary tax on the already
too high cost OF living.
2. The railroads have not compiled
with the law which imposes on them
the burden OF proof TO support their
claim that the proposed rate increases
are reasonable.
3. II is not right that the public
should be taxed to pay dividends ON
watered stock.
4. II Is not right that the public
should be taxed to pay the cost OF in
efficient management The railroads
have not kept pace with other com
mercial institutions In the applica
ton OF modern money saving scien
tific methods.
8. That the credit OF the railroads
has been Intentionally impaired by at
tacks emanating from the railroads
themselves, as a preliminary to the
present demand for higher rates.
6. That efficient management would
repair the railroad credit and furnish
money for all legitimate purposes.
T.. That no fair proportion OF the
increased revenues goes to labor.
II is assumed by those who have
followed closely the various steps Of
this case that the decision OF the in
terstate commerce commission will be
In favor OF the shippers and adverse
TO the railroads. In case this proves
TO be the fact, will the railroads ap-
peal to the new commerce court, which
was one OF President Taft,s favorite
projects? Members OF the commits
sion hold that the new court has no
jurisdiction to override decision like