The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-01-07
HIGHER Rates UNJUST|FlED.
RAILROADS ACCUSED OF EX-
TRAVAGANCE AND MISMAN-
AGEMIGNT.
Brandeis Lays Bare The Weakness
and Unreasonableness of The De-
mand for Higher Freight Rates.

This proposition is the essence Of
state commerce commission by Louis
ID. Brandeis Of Boston, counsel for
the traffic committee of commercial
organizations of the Atlantic sea-
board. in the two Investigations by
the commission of the proposed ad-
vances in freight rates by carriers in
official classification territory-that
part Of the country east Of the Mis-
sissippi and north OF the Ohio and
Potomac rivers.
Railroad managers, Mr.. Brandeis
contends, In an effort to meet exist
ing needs should look not without,
but within. "If their net income is
insufficient" he says, "the proper
remedy is not higher rates, resulting
in higher costs and lessened business,
but scientific management, resulting
in lower costs, in higher wages and
increased business. If their credit is
impaired, the proper remedy is not
to apply the delusive stimulant Of
higher rates. but to strengthen their
organization by introducing ad-
vanced methods and eliminating
questionable practices. Thus they
will maintain credit by deserving it,"
Mr.. Brandeis indicates that he con-
siders the great question involved in
the investigation to be the statement
of Mr.. Willard, president of the Bal
timore e. Ohio, that the tendency of
rates will be to continue upwards"--
that is. that there will be a progress
sive increase in rates.
"As an alternative to the railroads
practice Of combining to increase
rates." suggests Mr. Brandeis, 1--WE
offer cooperation tolreduce costs. In
stead Of dangerous make-shift, we
offer a constructive policy, scientific
management, under which, as costs
fall, wages rise"
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 to sustain their
burden of proof; have failed so COM
pletely that the application Of the
railroads for approval of the new
tariff should be denied"
In a discussion Of scientific man
agement" it is maintained that the
contention of the railways that the
Possibilities Of economy in railroad
ing have been practically exhausted is
contrary to all human experience
in other lines Of activity"
1t is maintained by Mr.. Brandeis
that "at least $1,000,0OO day could
be saved by the pursuit Of methods
Of scientific management of Amer
lean railroads"
nj response to the contention of
the railroads that the proposed in
Mr.. Brandeis urges that no evidence
was presented TO sustain the conten-
tion; that no increase in any class
rate can properly be made mithout
giving the shippers an opportunity
TO be heard, and that the pending
increases were fixed without afford
ing the shippers such an opportunity.
He argues further that the injus-
tice and inequality in the existing
classifications are such that no
horizontal raise in rates could be
adopted without great hardship to
the Shippers' in communities affected
that'the proposed increase seriously
distorts on some railroads, the rela-
tion of long distance to short distance
traffic; that the imposition OF nearly
the whole burden Of the increased
rates upon class rates appears to be
unjust; that the proposed increase
would seriously contract the market
Of the manufacturers and merchants
of the Atlantic seaboard; that it would
seriously increase the cost OF living
and that it would reduce the volume
Of long distance tonnage and hence
the expected gross revenue Of the
railroads"
AS to the argument Of the railroads
that they need additional revenue on
account Of the required increase in
wages, Mr., Brandeis submits three
propositions:
N'irst Some railroads at least do
not need additional income.
Second. In some railroads any eX-
sting need OF additional income is
due to causes other than wage in
crcascs or acts Of congress.
Third. Every railroad U.bicb l.