Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-16
WESTERN RATE CASES
NOW. BEING ARGUED
Proposed New Tariffs on Com
m0ditieS the Issue Before
Commission.

Arguments in the western rate cases
were begun today before the interstate
commerce commission.
In general the cases are similar to
those involving the carriers in official
classification territory which were ar
gued before the commission last week.
They differ from the western cases. how
ever, in an important respect. The lat
ter involve sonly-or practically only
class rates, while the western cases in
volve only commodity rates.
Several months ago the carriers in
Western Trunk Line Association terri
tory filed tariffs with the commission
making general advances on many COM
modities in that territory. While. pri-
marily. the tariffs filed affected only the
carriers in that particular territory: as
a matter Of practice they affected the
rates on all the commodities named on
trafic in these commodities throughout
the country.
Nine States Are Involved.
The territory involved in the direct ad-
vance in western rates includes the states
Of Wisconsin,, Minnesota, Iowa, missouri,
North Dakota, South Dakota. Nebraska,
Kansas and Montana.
The arguments were opened by state
ment submitted by. Frank Lyon, one or
the counsel for the commission. He sub
mitted elaborate tables showing the arti-
cles affected by the advances; the freight
revenue of many of the roads. together
with the ratio Of increase in revenue to
wage increase: estimated wage Increase.
and the amount Of capital stock OF the
roads and the declared dividends upon It.
He said that the carriers frankly state
that unless they should be restrained
other increases in rates than those In
volved in these cases would be made
where competition would permit.
1.-THE primary object OF Congress in
undertaking to regulate the common car
rier is to provide reasonable rates. which
must mean such rates as will. on the
whole, make a reasonable return upon
the property fairly and honestly dedi-
Gated to the public service said Mr..
Lyon.
Basis of Rate Fixing.
by some it has been urged that the
commission should determine the rea-
sonable rate by resort to the same
method that is used by the carriers:
that is, the value of the service to the
shipper. This is untenable, for tine
primary reason that the value of the
service is Numerically opposed to reg
ulation. When rates are regulated the
purpose must be to have collected from
the shipper such sum as does not eX-
coed q reasonable return upon the
property used or upon the fair invest
ment."
Desire to Improve Roads.
Mr.. Lyon said that the increase in
the cost to the railroads OF labor dur
ing the last ten years had aggregated
about 80 per cent.
"Of course said he, 1.-The operating
expenses Of the roads have increased,
There is no doubt about that. Still, I
think less stress is being laid by the
carriers on advances In wages. as an ar
guments in support OF the proposed In
crease Of rates. than on q desire to ac-
ouire more funds for the making OF i'm
proyements in the properties"
Interrupting Mr.. Lyon, Chester NJ
Dawes. counsel for the Chicago. Burlng-
ton and Quincy. explained that the pay
roll Of that system OF $3O.OOOOOO an
nually had been increased $4,000 a
wear by advances in wages.
I'VE have pending now. said Mr..
Dawes, in response to an inquiry by Conn
missioner Clark, demands for increases
in wages Of some of our employees. The
engineers, trainmen and conductors have
been given an advance and, In accordance
with the general policy OF the burlington,
we expect to advance on the same basis
the wages of all of our employees, whether
they be OF organized or unorsani1ed la
Dor"