Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1911-01-10
H|CHEREFF|C|ENCY
THE ONLY PANACEA
HIGHER FREIGHT RATES 0P.
POSED BY ATTORNEY FOR
TRAFFIC COMMITTEE.
BRANOEIS ATTACKS RAILROADS
Scientific Management Required
Says Roads Have Failed to Main.
tain Their Argu.
ment.

dards of efficiency, not increased
freight charges, are the needs Of
American railways.
This proposition is the essence Of
the brief filed with the interstate CON-
merce commission by Louis D. Bran
deis, counsel for the traffic commit
tee of commercial organizations of
the Atlantic seaboard. in the investi-
CATION by the commission of proposed
advances in freight rates in official
classification territory - the section
east of the Mississippi and north Of
the Ohio and Potomac rivers.
Railroad managers. Mr. Brandeis
contended, should not look without,
but within.
IF their net income is insufficient"
he says, 1.-The proper remedy is not
higher rates, but scientific manage
ment. which will lower costs and bring
increased business as well as making
higher wages possible. If their cred
it is impaired the remedy is not high.
err rates but advanced methods and
the elimination of questionable prac-
tees. They will maintain credit by
deserving it,"
The proposed advances in classic.
cation territory would affect only
class rates. The total freight tonnage
for 1909 was 626,321,975. Less than
eight per cent moved under class
rates. yet of the freight revenue Of
these railroads for the calendar year
1909, nearly % per cent ($1O3,271,.
S23) was derived from class rates.
These rates govern over 1000 articles,
including most of the necessities and
competitive articles The proposed
Increases vary from eight to 20 per
cent.
Offers an Alternative.
Mr.. Brandeis indicates that he con-
siders the great question in the in.
vestigation is the statement of Presi.
dent Willard of the Baltimore and
Ohio that "the tendency Of rates will
be to continue upward"
CAS- an alternative to the railroads
practice of combining to increase
rates." suggested Mr.. Brandeis. I'VE
offer cooperation to reduce costs; sci.
costs fall, wages rise"
The consumer. he points out. should
beware of the vicious circle of ever
increasing freight rates and ever In.
creasing cost of living
The burden of proof of necessity Of
the proposed advances being upon the
railroads. Mr.. Brandeis maintains that
the roads have failed so completely
to sustain their burden Of proof that
approval of the new tariff should be
denied"
The contention of the railways that
the possibilities of economy in rail
reading have been exhausted in de-
MED.
Mr.. Brandeis insists that advances
in transportation have been relatively
few and some Of those have been
forced by law against strenuous oppo
sition.
Suggests Publicity.
It is indicated that scientific man.
agement increases the efficiency of
the individual and Of the plant and
also increases the emoluments of
both capital and labor. It eliminates
graft in the purchasing and in con.
struction work. Publicity, argues Mr..
Brandeis. is an essential condition of
freedom from graft
1t is maintained that "at least ST..
100000 day could be saved by scien.
tific management" Of American rail.
roads.
Mr.. Brandeis urges that no evidence
was presented to sustain the conten.
ton that the proposed increases in
class rates is reasonable. He says
that no increase in any class rate
can be made without hearing
the shippers and that the pending in
creases were fixed without such hear.
ing.
He argues further that "the injus-
tice in the existing classiications is
such that no horizontal advance could
be made without great hardship; that
it would seriously increase the cost of
living and that it would reduce long
distance tonnage, and hence the reve-
nue. of the railroads"
AS to the argument Of the railroads |
that they need additional revenues on
account of required increases in
wages, Mr.. Brandeis says:
Every railroad which Is properly |
financed can meet existing needs by |
scientific management"
WISCONSIN p. o. ROBBED.