The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-21
HIGHER FREIGHT RATES
OPPOSED by SHIPPERS.
They Believe That Railroads Are Not
Alone in Suffering Hardsliips
Caused by European War.
ALL INDUSTRIES ARE AFFECTED
Appear Before Interstate Commerce
Commission and Oppose Plea OF
Eastern Carriers for More Reeve
nue--israndeis Attacks Policies.


nue--israndeis Attacks Policies.
WASHINGTON, October 2o.-Counse1
for shippers took the position before
the Interstate Commerce Commission
to-day that no condition confrol.ts
American railroads az Il result of the
European war or any other cause that
does not equally affect every other
American industry. This contention
was the basis for rigid cross eXamina-
ton of witnesses called by the Eastern
railroads TO support their petition Cor
. per cent increase in freight rates.
Members of the commission frequent
~ questioned witnesses closely.
The attack of Special Counsel Bran
deis on the policy of the railroads of
maintaining their dividends without
respect TO the financial straits IN which
they now profess to find themselves,
received special attention from Com
missioner Meyer. Questioning Daniel
Willard, president of the Baltimore and
Ohio Railroad, and Frederick w. Strauss,
of the New York banking house of w.
and j. Seligman, Mr.. Meyer asked If
stockholders should not be content to
draw their profits part ~ improvements
of the properties and part In cash. Both
insisted that reduction of dividend
would impair credit Of the lines.
HEARS OF NO PROPOSAL FOR
"DUY-A-SIfARE" MOVEMENT
Commissioner Meyer said he had
heard of no proposal to start n Buy
a-Share Railway-Stock" movement. He
asked Mr.. Straus if the statements OF
witnesses for the railway as to the
prospects for railway securities were in
his opinion calculated to make such a
movement popular
Commissioner Meyer then asked If
the witness did not believe 4 clientago
Of stockholders could be built up who
would look upon property improve
ments as Il part of their legitimate divi-
dends. Mr.. Straus thought not.
Then the average stakeholder. in
your opinion" asked the, commissioner,
buys income, not propcrty?'
He has little personal pride in the
property" was the reply. 1T is too
remote for him. He Is Interested in
what he gets out of his investment"
During the cross eXnmination of Mr..
Willard, Commissioners NIcChord pointed
out that the proposed per cent In
crease would realize about $4,000, 900
and asked IL this would accomplish the
correction of all the oppressive condi-
tons of which the carriers complained.
THE idea Is that this 100000, 000,"
the commissioner said, will put the
railroads on their feet and improve
business in the country. The country
seems to be arguing in favor of this
increase. / see It In the press and in
and in reports from other parts of the
country"
Il have not spoken for the country"
said Mr.. Willard.
DESCRIBES CONDITIONS
ARISING FROM WAR
Tho only other witness of the day
was Charles a. Conant. Of New York,
who appeared as an expert for the car
ricrs, to describe conditions In the
| money market arising from the Euro
| pean war. lie predicted that the rail-
roads would find new capital hard to
| get and said Increased earning capacity
was imperative.
cross-cxamination. Counsel for the
commission asked If the probable ad-
vance In interest rates he predicted
would not bear equally as hard on
shippers seeking new capital as OH the
railroads. The witness said American
securities, other than railroad, already
paid higher rates of interest, but adj
mittcd after much discussion that the
shippers would face the same condi-
tions.
What remedy for these conditions
do YOU suggest" he was asked.
$50 far rs the RAILROADS are con-
ccrned.- permit them to increase reve-
nues."
Would that apply to all lndustries?"
persisted counsel.
That's too broad n question:" said
the witness.
Would 1t help the cotton industry
TO raise the price of cotton?' asked
Clifford Thorne. representing numerous
shippers organizations.
Not at this moment" said the wit
ness.
Mr.. Thornc asked If the witness knew
of any public utility company that had
requested permiss sion to advance its rate
. l,.,g u tttN.,, ,nty ..tt
+ 81 could not say as to that" answered
Mr.. Conant.
Commissioner Clements asked about
Mr. Commits qualifications as an expert
or finance. Mr.. Conant said he had adj
viscd several governments as to the re-
organization OF their monetary sys-
tens, and his counsel stated that full
record of his qualifications appeared in
| the earlier hearings of the advance
| rate case.
"IIave you been employed by the rail
! roads In this case" asked the commits :
| sioncr.
Ger tainly," the witness replied.
STNAUS TAKES STAND
! IN BEHALF OF BANKERS
When Mr.. Straus took the stand. his
counsel asserted that the bankers had
| asked to be heard and he appeared en-
! tirely Independent of the carriers. The
witness declared his purpose was to
I lay before the commission, the effect Of
I the war Oh railroads, which. he said,
| was the standard of American Sccuri-
ties abroad. Tho foreign investor. he
! said, must be assured that his invest :
mcnts would continue to yield him good
| returns, that the values OF those sccuri-
! ties would lie maintained or a trcmcn-
| douS gold movement to Europe would
result. He said he made no claim that
I tho advance in rates to the railroads
| would accomplish that by itself; but in
| sisted 1t was AL that the commission
! could do and was the immediate and
/ pressing need.
| The hearing will continue to- morrow