The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-03
MUSTLOOK WITHIN
FOR THEIR REMEDY
Troublesof Railroads DO
Not Come From
Without.
RATE INCREASE
is NO SOLUTION
Attorney Brandeis Combats Re.
quest for Higher Traffic
Charges and Again Points
Way in Which Roads May
Save Million Dollars
Day.

Washington. ID. c., January .
/ Higher standards Of efficiency. no, in
creased freight charges, are the para
mount needs today OF American rail-
ways
This proposition is the essence of the
brief filed to-day with the Interstate
Commerce Commission by Louis d.
Brandcis. Of Boston. counsel for the
! traffic committee of commercial or
ganizations OF the Atlantic Seaboard in
the investigation by the commission OF
the proposed advances in freight rates
by carriers in official classification ter
ritory-that part OF the country east
of the Mississippi and north of the
Ohio and Potomac Rivers
Should Look Within
Railroad managers. Mr.. Brandeis con-
tends. in an effort 10 meet existing
conditions. should look not without
but within. IF their net income is in
sufficient" he says, the proper remedy
( is not higher rates, resulting in higher
costs and lessened business. but scien-
title management. resulting in lower
costs. In higher wages and increa cd
business If the railroad credit is i'm
paired. the proper remedy is not to
apply the delusive stimulant of higher
rates, but to strengthen their orEani-
cations BY Introducing advanced meth
| DDS and eliminating questionable prac-
iices. Thus, they viii maintain credit
oy deserving it,"
Mr.. Brandeis indicates that he con-
siders the great question involved in
the investigation 10 be the statement
OF President Willard Of the Baltimore
and Ohio. that the tendency OF rates
will hc a continue uuWard'-.thut is
that there Will be a progressive in
crease In rates.
las an alternative to the railroads
| practice of combining to increase
rates" suggests Mr.. Brandeis. "we Of
/ fer cooperation TO reduce costs. In
stead OF a dangerous makeshlft, we Of
| fer constructive policy-scientilc
| management, under which as costs
| fail. wages rise
I The law places the burden OF proof
| OF the reasonabieness of the proposed
| advances upon the railroads. Mr.. Bran
| aeis maintains that the roads have
failed utterly to sustain their burden
! OF proof have failed so completely
| that the application OF the railroads
! for approval Of the new tarin should
! be denied
! In discussion of Scientific man
agemcnt." II is maintained that the
| contention OF the railways that the
| possibilities Of economy OF the rail-
roads have been practically exhausted
Is contrary to all human experience
| in other lines OF activity"
| Save SI,O0O,O0O II Dry
| II is maintained by MIR. Brandeis
that "at least sI.ooo,ooo a day could be
saved By the pursuit OF methods of
| scientific mama cement" of American
| railroads
In response to the contention of the
railroads that the proposed increases in
| class rates are reasonable, Mr. Brkn-
/ GELS urges that no evidence was pre-
scented TO sustain tho contention: that
no increase in any class rate can prop
! erly be made without giving the shin
] pers an opportunity 10 be heard: and
| that the pending increases were fixed
| without affording the shippers such an
| opportunity. He argues further thai
| the injustice and inequality In the
1 eSisting Considerations are such that
| no horizontal rise In rates could he
made without great hardship Ia ~,
| shippers in communities affected: that
| the proposed increase seriously dis
torts, on some railroads. the relation
! OF long distance TO short distance traf-
| fic; that the Importation of nearly Tho
! whole burden of the increased rates
| upon class rates appears To be unjust:
| that the proposed increase would sort
| 1900 NS'i''dSI VIC market or the n
ufacturers and merchants of the Al.
lantic seaboard; that II would serI
ousiy increase the cost of living. and
that II would reduce the volume of
long distance tonnage. and hence ,ho
expected gross revenue of the rail-
| roads"
| AS to the argument of the railroads
that they need additional revenues on
account of required increases in wores
Mr., Rrandeis submits three proposi
! tons:
"l'irst-Some railroads. at least do
not need additional income.
| "Second-In some railroads upv
! existing need of additional income Is,
due to causes other than wage in
creascs or acts of Congress.
! 'Third-Every railroad Which is
properly undertaken and financed can
meet any existing needs without rate
increases through the introduction OF
| scientific management"
| Points Out the Causes.
| The contention OF the railroads that
greater income is imperative in order
| to secure needed new capital for cy
| tensions and improvements, is met by
the assertion that III the credit of
American railroads is in any resnrct
| impaired, the impairment Is due either
TO the understandable attack made
upon 1t by the railroads and their
associates. or to their Individual mis-
! management; and that Il Is not the
1 result of any necessary increase in
operating expenses or OF government
regulation.
IF any general distrust of railway
investment exists, its cause will be
found not in the increased burdens
imposed by wage advances or by gov
eminent regulation. but In distrust
Of the purposes and judgment of those
who control and manage the railroad