The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-03
Higher Standards Of Efficiency
for Railroads.
Proposition Advanced by AttOr-
ney L. d. Brandeis.
NOT HIGHER RATES.
Railways Should Have More
Scientific Management.
Other Items of General Inter-
est i'm Traffic World.

Washington. Jan. s.-Higher stand
ards of efficiency, not Increased frelgnt
charges, are the paramount needs to-
day of American railways.
This proposition is the essence of the
brief filed with the interstate commerce
commission by Louis D. Brandeis, of
Boston. counsel for the traffic commit
tee of commercial organizations Of the
Atlantic seaboard, in the investigation
by the commission of the proposed ad-
vances in freight rates by carriers II
official classification territory-that
part of the country east of the Missis-
s.ppi and north of the Ohio and Po-
tomac rivers. Railroad managers, M.
Brandeis contends, in an effort to meet
existing needs, should not look without,
but within.
IF their net income is insufficient
ne declares, 1.-The proper remedy is not
higher rates, resulting in higher costs
and lessened business, but sclent1flc
management, resulting in lower costs,
in higher wages and increased business.
IF their credit is impaired, the prop
er remedy is not to apply the delusive
stimulant of higher rates, but to
strengthen their organizations by m
Producing advanced methods and ei1ml-
mating questionable practices. Thus
they will maintain credit by deserving
it,
The proposed advances by the lines
in official classification territory would
affect only the class rates. The total
freight tonnage of the lines for the call
endar year 1909 was 626, 321 1915. Less
than s per cent of this moved under
class rates, yet of the freight revenue
of these railroads for 1909 nearly %
per cent ($103, 271, 1928 was derived from
class rates. These rates govern in the
shipment of over 1900 articles of COM
fr7a inc of Tho necessities
of life and articles of competitive COM
MERGE The proposed increases vary
from per cent to 20 per cent, averag-
ing approximately 16 per cent.
Mr. Brandeis indicates that he con-
siders the great question involved in
the investigation to be the statement
of President Willard, of the Baltimore
& Ohio that the tendency of rates
will be continued upward''-that is,
that there will be progressive in
crease in rates.
The law places the burden of proof
of the reasonableness OF the proposed
advances upon the railroads. Mr..
Brandeis maintains that the roads
have failed utterly to sustain their
burden of proof; have failed so COM
pletely that the application of the rail-
roads for approval of the new tariff
should be denied.
In response to the contention that
the proposed increases in class rates
are reasonable, Mr.. Brandeis urges that
no evidence was presented to sustain
the contention; that no increase in any
class rate properly can be made with
out giving the shippers an opportunity
to be heard and that the pending in
creases were fixed without affording
the shippers such an opportunity.
AS to the arguments that the rail-
roads need additional revenues on ac-
count of required increases in wages,
Mr. Brandeis submits three PROPOSE
lions:
First-Some railroads, at least, do not
need additional income.
Second-In some railroads any exist
ing need of additional income is due
to causes other than wage increases Or
acts of congress
Third-Every railroad which is prop
erly undertaken and financed can meet
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.. Brandeis as taken from the testi-
mony submitted.
The contention of the railroads that
great increase is imperative in order to
secure needed new capital for extern
SionS and improy ementS, is met by the
assertion that eff the credit of Ameri-
CAN TdllTOdQS Is III ally respect I'LL
paired, the impairment is due either TO
the unwarrantable attack made upon
it by the. railroads and their asso-
ciates, or to their individual misman
agement, and that it is not the result
of any necessary increase in operating
expenses or of government regulation .
AS another reason for the impairment.
of the credit of Railroads.&c. such i'm
pairnent exists-it is pointed out THAI
the car repair graft of the Illinois Cen
trail, the embezzlement of the treasurer
of the Big Four, the graft on the Penn
sy1vania and Baltimore & Ohio, the
Chicago & Alton scandal, following the
great insurance scandals, necessarily
shake confidence, particularly as the
controlling financial powers are largely
the same in the railroads and the in
surance companies
If any general distrust of railway in
vestments exists, it's cause will bn
found not in the increased burdens i'm
posed by wage advances or by govern
ment regulation, but in a distrust OF
the purposes and judgment of those
who control and manage the great rail-
road properties