Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-12-05
DRuNT or FIGHT AGAINST RATE
INCREASE FALLS ON STATE
COMMISSION.
RAiLRoAps MAKE srRoNo
SHoWiNo FAvoRs INCREASE
Raiireads Present Excellent Arsumsnt
Fer Per Cent Raise In TariHs-
Louis .. Drandsis Expected 70 Dc
Efficient Aid Of Shippers il Com.
batting Railroad contsntisns.
Special to Times Republican.

special to Times Republican.
Des Moines, Dec. Sunless there Is
postponement Of the case. Judge Hen
derson, commerce counsel. will have to
return to Washington to be present
next Tuesday when the interstate
commerce commission again takes UP
the rate increase case as affecting
eastern railroads.
II. d. Martin, chairman CT the COM
mittee on behalf Of western interests.
probably will not appear, because his
appointment as member Of the PHIL
ippine commission has been confirmed
and he is due to go at once. This will
shift the burden from Kansas to Iowa
Of leading in the fight.
Judge Henderson reports the inter-
state commission as treating the case
as one of the most important that mas
come before it this year. AL the mem
bers were present at the opening Of the
case, and always four or five present,
manifesting deepest interest in the pre-
liminaray statements Of the attorneys
for the railroads.
Roads Make Good Showing.
Unless Louis D. Brandeis, employed
by the commission to represent the
public, and the western committee. ad-
vising and assisting him, can put up a
very strong case controverting the con-
tentions Of the railroads, the interstate
commission will be forced to grant the
increased rates asked for Of 5 per cent
on all classes Of rates. thus increasing
by many millions Of dollars the income
Of the railroads in official classification
territory. According to Judge Hender.
son the railroad representatives made
d very clear and complete statement Of
their position. This was especially true
Of the statement Of Mr.. Delano. That
by Mr.. Willard was more general. The
Judge brought back with him an arm
full Of Exhibits" and tabulations Of
statistics prepared by the railroad ex-
perts.
Very likely the main contention Of
Mr.. Brandeis controverting the claims
Of the railroad companies will relate
to the method Of doing business and
the possibilities OF economies In man.
agement and operation and the unnec-
essary fixed charges. That Will be de-
veloped later; but the previous public
utterances Of Mr.. Brandeis would indi-
cate he will have o defense quite as
startling and as strong as the show
ing for the advances.
Main Contentious.
The chief showing OF the railroads
affected, according to the Willard
statement, is that while gross income
has increased, 1t has not increased as
rapidly as expenses. hence the net In
come on business $1S6. 100000 greater
in 1912 than in 1910 was in fact $16,-
100000 less.
They also show that In three years
they increased their property invest
ment by 1858. 0Oo. 900.
The sos, 100000 increase in expense
In one year is accounted for by reason
Of higher cost Of materials, labor, in
terest, adverse legislation, better SER
vice.
The wage increase just allowed BY
arbitration will cost the railroads at
fected 100000 year.
Increase In tax payments in ten
years was $4,000, 900 and in three years
81. 100000.
Full-crew laws will increase expense
by 100000 a year.
Higher rates of interest are neces-
sary, and there has been great increase
in cost Of all new materials.
The purchasing power Of money. due
to the actual decline in value Of
money, has had its effect on the busi-
ness.
The railroads claim it would not be
possible to effect further material
economies in operation or to secure
greater net income save by an increase
of rates.