Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-10
RAILROADS ARGUE
FOR HIGHER RATES
- -.-------
Hearings on Proposed 5 Per
Cent Increase Resumed
by the |. C. C.
PROTESTS PUT ON FILE
BY BODIES OF SHIPPERS
Charles A. Conant Cites Present Diff
fculty of Raising Money for
Railroad Financing.

Hearings on the proposed per cent
increase in freight rates by eastern rail-
roads were resumed today before the in
terstate commerce commission. Commits
sioner Harlan, directly in charge of the
case, presided, other members of the COM
mission being engaged upon cases else
where.
The railroads submitted additional sta
tistical evidence in support of their con-
tention that an increase of rates would
be necessary to enable them to furnish
service demanded by the public and to
secure anything like a reasonable return
for their services
At the opening of the hearing William
A. Glasgow of Philadelphia presented pro-
tests against the advance from manu-
facturers and users OF coke and from
manufacturers of cement. Protests also
were presented by Francis +. James,
representing the Eastern Paving Brick
Manufacturers Association, the National
shoe wholesalers Association and score
or more of flour millers of the northwest.
narticularly of Minneapolis, Mimi.
Mr. RroWnell, vice president and gen
eral counsel for the Erie railroad, called
as the first witness Charles A. Conant of
New York to testify as to the economic
phases of the proposed advance.
Mr. Conant declared. that the pur-
chasing power of the dollar over the
great mass of commodities has perma-
nently fallen since the present schedule
of passenger and freight rates was estab-
lished. Average prices m in i'iz were 4oo
higher than in 1896 and 49, per cent
higher than in 1904.
Harder to Get Money.
Those figures in Mr.. Conant's opinion
apply generally to all supplies and pur-
chases of railroads.
Mr.. Conant also discussed the largely
increasing demands for money through
ont the world, and indicated that it now
was necessary for railroad securities, for
instance, to be sold at lower prices than
formerly or to pay a higher interest
charge OH their par value.
He pointed out the difficulties of Sc
curing new capital for transportat on
lines, because other industries of high
earning power We're able TO outDld the
railroads, showing lower earning
power, for the supply OF Tree capital.
He pointed out, also. the tendencies of
investors to shift their investments to
those paying high returns In order to
meet the increased cost of living. even
at the risk of some slight decrease in Sc
curity.
Not Getting Their Share.
.sThe railways" he said, have not
adapted their charges, as have other in
dustries, to the change in the pur-
chasing power of money. They have
continued to sell their services for an
amount which has remained comparative
ly fixed in money. out has declined great
Iy in purchasing power They are not
therefore, on an equality with other in
dustries and are receiving a much less
proportion or share of the proceeds of
the economic output of the country than
flat which they formerly received, ana
they are less capable of contributing Their
share to equipping this country fo,. un-
fettered competition with other couu-
tries In the field Of production and in
ternatioual commerce."