The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-11-24
RAILROAD CLAIM
HATES JUSTIFIED.
Delano Even Says it Would be
Dangerous Not to Allow
Increase in
Rates.
OFFICIALS ON srA,
OFFICIALS ON sTA,
Interstate Commerce Commission Has
Brandels as Attorney In the
Hearing on the
Question:

WASHlNGION, NOV. 24.-Whetner |
the high cost of living shall be furth-
er boosted by increased freight rates
will be determined by hearings which
opened today before the interstate
commerce commission. This investi-
sation, with Louis D. Brandeis of Bos-
ton. acting as attorney for the COM
mission, will determine whether the
rinety-nine roads east of the Missis-
sippi and north Of the Ohio and Po-
tomac shall be allowed to advance
their rates on an average Of five per
cent. Indications at the outset of the
inquiry pointed to a determination on
the part of the interstate commerce
commission to prevent such increases
by having Brandeis develop method
of retrenchment in railroad operat-
ing expenses.
President Daniel Willard of the
1 Baltimore ana Ohio system represent
! ed the eastern roads today. His tes-
/ timony, not under oath. declared that
J the advances were absolutely essential
to a reasonable profitable conduct of
4 the lines. His evidence with that OF
] President F. A. Delano of the Wa
/ hash, and George Stuart Patterson
representing the Pennsylvania system
4 will probably consume two days.
i President Willard, spokesman fol
! forty-nine eastern lines, pleaded the
pinch pf Increased costs as. the reason
1 for the railroads advances. He de
!, clared that arbitration and mediation
!, had boosted the employees salaries
and new safety and labor laws hat
!, increased expenses enormously in re
I cent years. Rate increases, he argu
4 ed, are needed to furnish the public
! with high grade service.
81 Property investment on affecte'
. lines was s600,000,O 900 In the last thre
r years, Willard declared, but the road
a earned $16,311,321 less in the yea
e ending June 80, 1918, than in tn
a year ending June 80, 1910.
8, The railroad president declared tina
q the result of diminishing returns, ha
Deen TO CHECK IL uoI diLOSSlASi =
. stop, the normal development
2 railroad facilities. He asserted tina
81 freight rates in effect in 1910 hav
: not been maintained and present tal
: ifs are as rule lower than the
). were then.
Frederick A. Delano, president an
receiver Of the Wabash, speaking fe
4 the lines west of Pittsburgh and Blu
!. fa1o and east of the Mississippi, d
= clared the Commerce, prosperity an
q development of the whole territor
!. would be jeopardized If the commi
,el sion failed to grant the increases
N Gross earnings from 1910 to 19l
III on the forty-nine lines increase
N s1s6, 100000 while taxes and opera
II ing expenses increased $201,O 100000
III Speakers before the commission
er day besides Willard and Delano we
ID Geo. nj. Shriver, second vice pres
ID dent of the Baltimore and Ohio; W.
Ill Wishart, assistant to the New Yol
I" Central vice president, and 9.
I'd Bunting, comptroller of the Pen
is sylvania system. The hearing will a
a. iourn tomorrow night until the hT
i'd of the year when the interstate COZ
ne merce commission will again nave
= full board.