The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-09
FAILED TO PROVE.
Manufacturers Claim Railways
Not Managed in Right Way.
Economy and Efficiency Not
Been Demonstrated They Say.

demonstrated that their MANAGEMENT
is both efficient and economical, is the
contention made in a brief filed with
| the interstate commerce commission
| bv William D. Haynie and H. c. Lust.
| on oehaf of the Illinois Manufacturers
association in the pending investiga-
ton of proposed advances in freight
| rates.
| 1t is evident there is no presump-
! ton one way or the other that the car
rlers are efficiently and economically
| operated" says the brief land the bur-
den rests upon them under the inter
| state commerce act to prove their cas- !;
to prove it, they must show efficient
| management
! 1t is maintained that this proof has
not been demonstrated because rail-
| road management shows the same evils
| today as many years ago." when it De
! came necessary to institute govern
| mental regulation of the carriers.
| While the brief deals generally with
| the rate situation throughout the coun-
| try, it makes particular reference to
proposed advances in western trunk
| line territory. These are not advances
on class rates, but on commodity rates
approximately 60 commodities being
| selected to bear the proposed in
| creases
| 1t is urged that a part of the burden
| of proof is to show that the rates as
reasonable. This, it is submitted, has
not been done.
Much of the argument is On what
| constitutes a reasonable rate.
1.-THE railroads contend" asserts the
| brief that it is the value of the SER
| vice to the shipper, namely, all that
! the traffic will bear. We maintain that
all that the carrier is entitled to earn
| is a return of not to exceed per cent
upon the amount actually invested III
good faith in the property, provided II
| has been efficiently operated and the
rates which yield such a return do not
unduly burden the public.
| ''Where it is sought to make q
| blanket schedule of rates for many
! roads in the same territory, it is OBJ
vious that inequality and injustice may
| be at once met with. One road may
have cost a hundred million dollars;
another road may have cost two hun
bred million dollars-all in good faith.
'If you limit the rates so that the
| cheaper road only earns six per cent,
you give a less return to the more eX-
| penSive one, and conversely, II you
give a six per cent return to the ex-
| pensive road, you give an exorbitant
return to the cheaper one. We take It
| there is no problem before this COM
mission today more important or more
| perplexing.
1t is commended that the proper basis
of rates lis the actual investment of
| the carrier in good faith if the road
| is efficiently operated and the rates
\ just to the people. The reasonable
rates must not only give reasona bic
return to the railroad, but it should
not exact from the public more than
| a reasona BILE sum for the service per-
| formed If it does, the rate can not
| stand.
THE carrier must show that the
particular commodity on which it de-
le;,- 20 odx f6n 10
advance, that the relatively of that
rate to rates on other commodities is
not out of line, and also is not out OF
| line as to other localities.
| Then if the carrier shows that the
rate will only yield to it reasonable
return, according to its standard of
measurement; that its road has been
| efficiently operated, and that the rate
! will not be oppressive or unreason-
| able to the public, the carrier has
made out prima facie case under the
statute. If it has not made out such a
case, this commission is without power
| to grant an increase.
/ Following these broad principles
| comes an analysis of the case as pre-
scented to the commission in the testi-
| mony. This proves, it is contended,
that 1.-THE carriers have not made out
a case and, therefore, are not entitled
| to any increase"
| 1t is admitted that the railroads
| need enCOuTaRGm6nL
| kind and that the carriers have per-
| formed a wonderful service; but it is
pointed out that they have reaped stu
| pendous rewards and have shared to
a remarkable degree in the prosper
Gus conditions they have helped 20
| create.
AS to the best way to meet existing
/ conditions, various court decisions are
/ cited in support of the proposition tc
base the rate upon the cost in good
/ faith of the average railroad in any
given territory. 1t is suggested that in
mile of road will be established q
basis for the freight rate of that par
ticular road.
Attention is directed to the argu-
| ment of eastern carriers that they are
| entitled to an increase in rates. be-
cause of the advance in wages which
they have been compelled to allow. Il
/ is pointed out that the country is moi
vet clear of the business depression
through which it has been passing, anC
to follow the argument of the carrier!
that because times are not so good
would mean, if followed to its logica
conclusion. that the time when the
carriers would expect to exact theil
high rates would be in time of panic
When the railroads, the brief as
serts, come before the commission
with a request that they should b'
| allowed to increase their rates because
otherwise, they would not be able t,
sell their securities or pay a dividend
the burden rests on them to show tina
the money actually invested in gooC
faith in their properties has beer
equal to the amount of their capital
ization on which they wish to pay in
: terest and dividends.
The commission is urged to bear il
mind that the proposed advances un
der consideration are only wedge fo
the introduction of a general advance
provided the carriers can esta blish tn,
, principle that they need more none,
and are justified in getting it from tn,
public through increased rates.
Women to Jail for Selling Liquor.
Ida Bailey and Maude Lawson eacF
| pleaded guilty in the district court Sa~.