Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-11-05
COMMISSIONER THoRNE SAYS
THAT is WHAT COMMERCE
BOARD is ASKED TO DO.
IOWA RATE EXPERT RIDDLES
ARGUMENTS OF RAILROADS
Proposal to Increase Burdens Of People
at Time Of Depression Following
Prosperous Period Pointed to 40 Ad-
ditional Tax Lsvy-Doubts Ability to
Put II Over.
Special to rimes-Republican.

Special to Times-Republican.
Des Moines, Nov. 5-The latest and
most striking smile OF Chairman CHI
ford Thorne, in dealing with the freight
rate question, is to indicate that what
the railroad presidents have sought to
- Is feat greater than that attempt
"a by the alchemists Of old. for they
only sought to turn base metals into
gold while the railroad presidents ask
Of the interstate commerce commission
that it order water turned into gold.
This was his climax in presentation to
the commission of the opposition OF
shippers and consumers to the eastern
per cent advance rate case.
Mr.. Thorne declared that public reg
ulation of railroads has proved to be OF
benefit to the shippers and to the car
riers. and as to the latter stock that
was given away as bonus has ac-
quired some value under the kindly
care and protection of benevolent
Uncle Sam. He showed that dividends
have increased for the railroads and
net revenues in the United States as
while are greater by $400.00Q.000 than
they were sixteen years ago. Despite
! this it is proposed not to have freight
rates where they are but to raise them
to higher level. These freight rates"
he said. "have, all the essentials Of a
tax for they are levied on practically
everything we eat or wear. buy or sell"
Should &c Ne Esvcrites.
In concluding his remarkable sum-
ming up of the situation. he said:
~ r 20 -
burden on the American public when
world crisis is pending which it is
admitted may affect the railroads; but
1t will likewise affect other lines OF In
dustry and some are Frustrated as a
result thereof; you propose this at a
time when a lull. depression in busi-
ness generally prevails. High rates
during a depression and low rates dur
ing prosperity as has been suggested
by on or two OF your chief witnesses
would be directly contrary to the needs
and welfare of the public. Your stock
holders should share the results Of the
general financial situation. Others are
doing so.
You propose to increase this tax
burden when the credit Of the Ameri-
can railroads, as a class, Is proved by
that Of companies engaged in any 9TH
er line OF business in the United States.
either telegraph. telephone, electric
light, street railway, Industrial, public
utility, manufacturing, or any other
sclAss Of companies engaged in any
line OF business in this whole nation.
You propose to increase this tax
burden at time when the railroads
have been able to maintain their prop
critics better than ever before in their
history. Your maintenance allowance
last year. right here in this district, ac-
cording to your own exhibit in this case
were 100000 greater than ever be-
fore. In 1913 they were not as high as
in 1914. but they were $60.000,000 great
er than any other year in your history.
'.You propose to increase this tax
burden on the basis of a property In
vestment which this commission itself
has previously declared that no ac-
countant or financial writer of any
consequence would accept as any evil
dence of either original cost or present
value.
"You railroad men propose to in
crease this tax burden on the basis
Sof comparison which no recognized
Haccountant in the United States would
Jclaim as sound, because your own
r. cords prove, and one OF your chief
Il illnesses conceded that the method Of
compiling that property investment
4 has changed during the years that are
compared. Further, this record proves,
and your own witnesses concede that
the method of accounting for deprecia-
y ton and maintenance has changed
! during the years compared.
You propose to increase this tax
burden on the basis Of a so-called
property investment. which, for about
kfwo- thirds of the companies. is greater