The Washington herald., 1914-03-29
FREE SERVICE BY
ROADS IS SCORED
Brandeis Says Pennsylvania
Favored Certain Ware
house Concerns.
ANNUAL LOSS, s2S2,OOO
Charges Also Made Against Erie-Re-
port in Connection with Ad-
vance Rate Case.

Louis ID. Brandeis, counsel for the In
tsrstate Commerce Commission in the ad-
evidence before the commission the re-
suits OF the Investigations made by the
commissions examiners into the so-called
free services performed by the Eastern
carriers for some shippers. Mr.. Brandeis
contends there is great and unnecessary
depletion Of the revenues OF the railroads
through these so-caIled leaks
The charges are made that the Penn
sylvania Railroad was discriminating in
favor of certain warehouse companies
and that the road was losing annually
about $4,000 through this free service to
subsidized warehouses The commissions s
attorney was particularly harsh on the
free services granted TO shippers in New
York City and contended that they con-
stituted a discrimination as against ship
pers in Jersey City and other nearby
points
The commission experts presented de-
tails OF alleged freight transactions be-
tween the Erie Railroad and the Stand
ard Oil Company, in which IL was con-
tended that the total freight rate OBJ
tained practically was consumed by the
terminal charges at New York City,
which were shouIdered by the railroad.
The commissions experts presented
some cases In which il Is contended that
the railroads through these special free
services and allowances paid what actual
ly amounted to bonus for the privilege
OF carrying freight over their lines.
Interest In Statement.
summary OF the results Of the in
vestigations by the commissions experts
was given out by Mr.. Brandels in the
form of statement yesterday morning
The issuance of this statement was re-
garded with considerable interest By
many 1t was believed II indicated a plan
on the commissions part TO present facts
before the public in answer TO the ef-
forts which are beinr made by many of
the railroads to hurry the commission
IN its decision on the advanced rate case
MIR. Brandeis charges that shippers al
Philadelphia who patronize certain ware
houses receive favored treatment
Such persons who choose to patron
ize certain warehouses designated by the
pennsylvania Railroad-the Merchants
Warehouse Company. the keystone EIe-
Vator and Warehouse Company, the PENN
sylvania Cold Storage and Market Com
pany-have their freight unloaded from
the cars. stored four days and then
carried to the wagon free OF expense to
the shipper. the expense OF that opera
tion being in such case borne by the
Pennsylvania Railroad. which free sery-
ice cost the Pennsylvania at Philadel-
phia. through three of the four SUBJ
sidized warehouse companies. sess Isl in
the year ending June %, l913''
Mr.. Brandeis charges also that there is
a discrimination as between the ware
house men; that in the absence OF spe-
cihc Instructions to the shipper. the Penn |
sylvania Railroad delivers shipments in |
Philadelphia at one OF the subsidized |
warehouses.
Cites Cases at Buffalo.
Mr.. Brandeis says that free services in |
loading or unloading carload freight |
similar TO those at Philadelphia. were
FOUND at other places. notably Buffalo. !
Mr.. Brandeis gives the record of several !
investigated by the commits
sions examiners. in which he contends |
that the amount paid by the railroad To
storage companies for loading or unload |
ing have exceeded the total freight |
charges collected
In regard TO the Erie Railroad. MIR
Brandeis says that the total freight reve-
nue. or that system for the year ending |
June Sl. 1913, was 81 -. SO The total |
revenues earned on business destined to.
about . per cent Of the Erie's total |
freight business. Owing to the obvious |
important effect OF this business on the
condition OF the Erie. the COM
mission undertook an investigation into |
the special services incident to the Erie |
New York business
The investigators find that the freight |
rate on large part of the freight des-
tined to. or originating in. New York
harbor, is the same for Jersey city and |
Weehawken as II Is for the island of
or Brooklyn.
That is says Mr.. Brandeis. the
merchant or industry at Jersey City or
Weehawken pays for the service that
the Erie renders II just as much as the
merchant or industry IN New York City
or Brooklyn. the added expense of get
ting the freight to and from New York
City and Brooklyn being borne by the
railroad"
The Standard Oil Company ships large
quantities Of paraffine wax to Weehawken
Ior ultimate export says Mr.. Brandeis
Under the Erie tariffs. this paraffine wax
frequently for long time in
storage, the freight charges not being
paid until the merchandise is REMOVED
On forty-nine cars arriving between No
Eember J. 1912. and August 2S. 1879. which II
We're on hand October. 1872 there was
6.126 due for freight. II there had been
made cost for loading and unloading
hat paraffine wax. of lightering into New
York, the interest lost on the freight
money of which payment was deferred.
he cost of the storage at the customary
ate prevailing at other places. they
would together amount to a sum far ex-
'eeding the total freight revenue; and
iguring the storage charge at actual cost
o the carrier. the total freight received
vas practically consumed by these ter
nInsl charges at New York. leaving moth
ny for the cost of transporting thee
ars S6S miles from Whiting, Ind, to
Neeha vixen -