New-York tribune., 1911-01-17
WESTERN RATE ARGUMENT
,,.,sase Asked by Tariffs About
' 16 Per Cent.
GREATER OPERATING COST
.-,ods Insist That the Rate
pa, ,-rst Be Advanced-At Feet
Of Commission.

,,--.,,. Jan. l6.-Arguments IN the
vas -.te cases were begun to-day be-
Nss'sI" 1,+.-s+ste Commerce Commission.
ioTs " the cases are similar 10 those
- the carriers in official elassihea-
il'0',,,,t ..-%,tory which were argued before
COZ omission last week. They diner
TIE ,bs Eastern cases, however, in an
''o~ -. rss7ect. The latter involve only
DIP --..,,srrv orly-class rates. while the
'-o' p soe-s involve only commodity
rtes, ....,.- .-, the carriers In West
- Lire Association territory fled
e. -. with the commission. making gen
a., .F,s--es on many commodities IN
f'@i ..--it,rv. While primarily the tariHs
"a .-..ts4 only the carriers in that par
~ ,.~r..o~-. as a matter ot practice
'o-3- .r.o,,5 the rates on all the COM
~ - named on traHic ir those com
-. ,..,s .rrourhout the country
~ c. 1sDs-51 vav ninety-two commooi-
.-s are,,cd All OF them are articles
..ay consumption, and. for the greater
nav he regarded as neccssarles or
- bgsiness While no definite aver
A' che advance IS possible. 10 WI. ap-
,-,ys-ats Is per cent
-. .-rrments were opened by a state
-. - ,,s--it.s5 by Frank Lyon, one Of the
- f,- the commission. He presented
- tables showing the articles af-
% ID, the advances. the freight rev.
=, ~ many Of the roads, together with
-,.fo Of Increase tu revenue TO waSs
80. estimate wage increases and the
-. NJ csrg-zl stock Of the roads and
=. ss,rs-sd dividends upon So.
~. sss thai the carriers frankly state
=. ..-rsss -hsv should be restrained other
@..,.ssz tn rates than those involved N
80. Eases would be made where compe-
,..,- vocld permit
,r- rvoD said that the increase IN the
-. ., .-e railroads Of labor durinE the
=. ,sr wears had aggregated about 81 per
-. a7t course " said he, "the operating
-..,sss Of the roads have increased.
- -.- mi. Doubt about that SuI. ! think
-. s--szs ls te.re laid By tho carriers on
.l-,-,ss fin ~---as as an argument in sup
,.r, a the proposed increase Of rates than
n desire 90 acquire more funds -of t-s
-,s,s improvements 10 the properties.
T-.,~---,s-- 1-- Lyon. Chester N.
80. counsel for The Chicago. Burning
- = ortr.v. explained that the payroll
- "a. s~z.s- O. Ur6Gl) annually had
s..- Increased sl--- 0oa a wear by advances
n wages.
49, Hanson. counsel to- the Chicago.
,rr-----s. & St. Paul Railway, pointed
on .rs- the valuation Of that line was
a-.g on that valuation the COM
,--- was making a return CT little move
raa per cent
.}rv contention Is that G. return Of So
~ ,s-t ts conclusive proof" declared 1lr.
|ls,s7-. a.hat the rates from which we
,..s.-s this return are too low.
Tie Supreme Court Of the United States
,ss sad that this commission -z not the
7.-s-a. mc-a-r lt the railroads, s-s-
s.s,si Edwin 1L E-zer. counsel OF the CHI
a,5 ( Norawe-ren Railway. "ard per-
fs7s lt IS not legally but Z an rather
-L1aG 90 the practical conclusion that
.ts commission Is the general manager Of
-s railroads. and I think the railroads
/ c-z 60. t-g. The railroads ot this coul-
n today are practically e. the feet Of
\ ~. comuissicn. and the welfare and cou--
zssss a. the country are there, also
h Tuis comm lss.o- should undertake 70
y-t valuation upon the railroads and
ns TO ez rates that would produce a
"a; 8 per cent return. then. II my Judg-
rsrt the commerce OF this country viii qle
ulsss the government owns the railroads.
H. S. Horton. counsel for the Illinois
Central indicated that during the last ten
vsa-s as compared with the previous ten
years the damages 20 freight on the LL.l-
nos Central had increased more than s4,-
MtI the damage 70 persons more than
g@eC, and increases had accrued from
ths putting Into effect oe regulatory laws
n ne ra-oaai and state governments. The
's.ru upon the whole property cs the
llaois Central i- 1910 1Lr. Horton sug-
sss,et was only AS per cent.
his he maintained. was wholly made
e1a;s 70 the needs Of the property and an
h.rzcce 70 the stockholders