New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-24
RAILROAD FREIGHT
RATE CASE ENDS
Early Decision by Inter
state Commerce Com
mission Expected.
ONLY ONE WITNESS
AGAINST INCREASE
Last Testimony for Carriers
Given by President Rea of
the Pennsylvania.

y
Washington, Oct. Hearings be-
fore the Interstate Commerce Commits
sion on the application Of Eastern rail-
roads for a general increase in freight
rates came to an end to-day. Argu-
ments will be heard next week, with
every indication of an early decision
by the commission.
The presentation of the case of OPP
posing shippers consisted only of a
statement by Clifford Thorne, counsel
for several Western state railway COM
missions and shippers associations,
who took the position that no business
depression had been shown by the car
riers that did not equally affect ship
pers and that the increase therefore
would be unjust.
The carriers closed their case with
the testimony of Samuel Rea, president
Of the Pennsylvania system. Louis
Brandeis, special counsel for the COM
mission, drew Mr.. Rea's attention to
the decision Of the commission in the
original per cent case, which pointed
out its inability to see the justice OF
raising rates on freight shipments to
conduct the passenger traffic, shown to
be operated at deficit.
HAS anything occurred since that
ruling which in your opinion justities
its modification now" Mr.. Brandeis
asked
Labor Charges Not Higher.
"Notbinq, that | know Of" admitted
Mr.. Rea.
labor charges in this period?"
Not that I recall"
Have the prices Of railway supplies
advanced to our mowledge?'
"No."
Mr.. Thorne followed Mr.. Rea on the
stand. Among other things he said:
My purpose is simply to help see
that the public side of these issues is
fully presented to the commission. If
the carriers are entitled to an increase
we hope the commission will grant II;
if not, we trust and believe that the
commission will deny the petition Of
the carriers. We favor advances on
such traffic as does not yield adequate
compensation to-day; likewise, we favor
reductions where conditions are the re-
of hostility IN our attitude toward the
railroads. We fully appreciate their
vast Importance in the commercial life
of the nation.
Logic of Roads Ridiculed.
80 is the prosperity of the farmer
basic and fundamental to the welfare
of the nation. Likewise, the welfare of
the laboring man is of tremendous i'm
portance to the prosperity of the coun-
try. A general advance of 10 per cent
in wages during this period of depres-
sion, according to the pleasing logic we
have been listening to during the last
few days, would put that much more
money into circulation. No man spends
his money more freely than does the
laboring man.
This is the third time American rail-
roads have sought to force a general
advance in freight rates. They have
some foundation to-day for their claim.
But this emergency upon which the
carriers are relying to-day affects prac-
tically all of US in the same manner. II
is just as hard for the manufacturer,
the farmer. the laborer, the telephone
company or the beef trust to borrow
money now as it is for the railroads
to do so.
"The railroads are asking for sort
of war tax; they are asking the govern
ment to lift the burden off a part of
the community and shift il over on to
the shoulders Of others. They ask the
wage Garner who has lost his job or
had his wages reduced; the cotton
planter. who cannot sell his cotton and
The manufacturer who has been COM
PEELED TO close his shop or reduce his
force-they ask these men TO carry the
burden of the railroad in addition to
their own.
War Cause of Trouble.
Freight rates are not the cause of
tn. present trouble. If this commits
sion wants to relieve the present emer-
gency it had better undertake to stop
that little unpleasantness across the
water. You can advance freight rates
TO your hearts content-it will still be
hard to borrow money. That will prob
ably continue until the war stops
"The present emergency can be met
in either one of two ways:
"First, by the use of accumulated
surplus, or,
Second, by a slight reduction in
dividend rates. &,
ut has been held that government
regulation has been hard on railroads.
This is not true; rebates, passes and
rate wars are practically things of the
past. The result has been an enormous
development of their properties and
great increases in their earnings. The
average rate Of dividends on all out
standing stock last year in the United
States as a whole was more than
double what it was twenty-five years
ago. The average dividend re-" in the
United States is more than one-third
greater than it is in Great Britain.
The facts are that government regu-
lation in the United States has been
the greatest blessing our railroads have