The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-01-03
bRANDE|S SAYS
PLAN IS WRONG
Counsel for Commercial Bodies
Declares Remedy Lies Not
in Increased Rates.
DECLARES NEW METHODS
ARE PRIME ESSENTIAL
Trouble Lies Within and Not
Without, Is His Assertion
Made in Brief.

WASHINGTON. Jan. 2.-TIighcr stan
dards of efficiency. not increased freight
charges, are the paramount needs today
OF American railways. This proposition
Is the essence Of the brief filed today
with the Interstate commerce commission
by Louis Brandeis OF Boston. counsel for
: the traffic commission OF commercial or
ganizations of the Atlantic seaboard In
tho investigation of the commission into
The proposed advance In freigh, rates in
official classification tcrritory-that part
OF the country east Of the Mississlppi
and north of the Ohio and Potomac rivers,
Railroad managers. Mr.. Brandois con-
tends. In an cffor. to meet existing needs.
should not look without, but within,
IF their net income is insufficient.
he saws, tho proper remedy is no, high
or rates, resulting in higher costs and
ment resulting in lower costs. in higher
wages and increased business.
Advanced Methods Needed.
"If their credit is impaired tho proper
remedy is not TO apply the delusive Stinu-
liant OF higher rates. but To strengthen
their organizations by introducing ad-
vanced methods and eliminating question
able practices. Thus they VIII MAINTAIN
credit hy deserving it.
The proposed advances by The lines in
official classification territory would al!
feet only the class rates The total
freight tonnage OF the lines for the cal
cndar wear 1909 was 626 ,32l ,9TS. Less
than per cent OF This moved under class
rates yet Of the freight revenue of thes,
railways for 1903. nearly 2: per cent
(Sfn3 2TI .S2S) was derived from class
ia tcs These rates govern In the ship
ment of moro than 1000 articles OF COM
mcrce. including most OF the necessities
OF life and articles OF competitive com
merce, The proposed increases vary from
S per cent TO % per cent, averaging APP
proXimately l6 per cent,
Says Roads Have Failed.
Mr.. Brandeis indicates that he oonsid
ers the great question involved in the IN
vestigation 10 he the statement of Presi-
dent Willard of the Baltimore G. Ohio.
that 1.-The tendency Of ates Will be TO con-
tinuc upward" that is. that there Will be
a progressive increase i'm rates.
The law places tho burden Of proof OF
the reasonableness OF the proposed ad
vances ON the railroads Mr. a.,deis
maintains that the roads have failed ut
tcrly 10 sustain their burden OF proof
have failed so completely that the appli-
cation of the railroads for approval Of the
Tncw tariff should be denied
- 1u response TO ;he contention that The
proposed increases In class rates are re-
sponsib1e. Mr.. Brandeis urges that no
evidence was presented to sustain the
contention that no increase in any class
rate properly can be made without giving
the shippers an opportunity 10 be heard |
and that the pending Increases were
liked without dftOrQlnE the Shippers SUCH
an opportunity, he argues.
AS 10 the arguments that the railroads
need additional revenues on account OF
required increases in wages: Mr.. Bran
deis submits three propositions;
First-Some railroads. at least, do not
need additional income.
Second-Ir some railroads any exist |
ing need Of additional incomes is due TO
causes other than wage increases or
acts OF congress.
'rhird-Every railroad which Is prop
any existing needs without rate in
creases. through the introduction of
scientific management,
In support of these propositions, facts
and figures from official reports of the
railroads themselves are cited by Mr..
Brandcls.
AS to Credit.
The contention or the railroads tina
greater income Is imperative in order TO
secure needed new capital for extensions |
and improvements. is met by the asser-
ton that If the credit OF American rail-
roads is in any respect impaired. the |
impairment is due either to the unwar-
rantable attacks made upon IL by the |
railroads and their associates. or TO their
Individual mismanagement. and that II
is not the result Of any necessary in |
crease in operating expenses or of gov
crnment regulation"
AS another reason for the impairmcn;
of the credit OF railroads.&c. such i'm
Darment eXlsts--it is pointed out that
the repair graft OF the Illinois Cen
traI. The cmbeZzement OF the treasurer
Of the Big Four. the graft the Penn
sylvania and Baltimore & Ohio the Chi
cago & Alton scandal following the great
insurance scandals. Unnecessarily shake
confidence, particularly the controlling
financial powers arc largely the same
in the railroads and the insurance COM
panies'
'f any general distrust of railway in
vesLments exists. its cause will be found
not in the increased burdens imposed by
wage advances. or by government regu-
lation. but in a distrust of the purposes
and judgment of those who control and
manage the great railroad Properties"
says the answer.