Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-10-30
RAILROAD RATE
ARGUMENTS ON
IN WASHINGTON
Brandeis Denies Case Has
Been Made JuStifying Per-
mission for Advance in
Freight Charges,

fnY MORNING tovEtft SPECIAL tEtsto Wisrl
Washington, Oct. 20. - Arguments
were presented to the Interstate Com
morce commission today by counsel
for thirty-fivc eastern railway systems
seeking a general advance in freight
rates, Louis A. Brandcis. the commits
sions special counsel, declared the
only new fact adduced by the carriers
to Justify their plea was the European
war. No specific showing had been
made he said, as to the injustice Of
any existing rates, and he expressed
the opinion that If the commission
saw tit to grant the advance. thereby
modifying its previous ruling, II
would exceed its legal powers and m
wade the province Of congress to de-
clare governmental policies.
Mr. Brandeis was followed boy +. B..
James and r. Il. Paulson representne
shippers Of brick and tile; Frank
Lyon and Charles NJ. Johnston. APP
pearing for PENNSYLVANIA coal pro-
ducers; Luther M Walters, in behalf
Of lumber and livestock shippers, and
Rush Butler. counsel for the Chi
eago association OF commerce All
maintained that nothing had been
brought out at the new hearings to
Justify the advance of any specific
rate and that the relief sought by the
carriers was beyond the legal power
Of the commission TO extend
Eight hours WIS allowed for argu-
mcnt, the time being equally divided
!. and thnGe
opposing the application. Tho case
for the railroad was opened by
George S. Patterson, OF the Pennsyl-
vania system, who was followed by J.
l.. Minnie Of the Wabash O. f But
terfield of the New York Central, and
others who dealt with specific phases
of the case Mr. Patterson urged that
the proposed Increases We're reason
able and declared the roads were not
asking for them "as a matter Of
grace.
Final arguments win be heard to-
morrow morning.
Clifford Thorne, who appears in be-
half OF several western state railway
commissions and numerous shippers
organizations, will sum up the case
Of those in opposition to the advance
in rates. while George T. Brownell,
Of the Erie system. will close for the
railroads. II is expected the commits
sion will take up the case at its Mo-
vember conference and dispose Of It
within month or less.
Argument by Brandcis.
Applying his position, Mr.. Bran
deis presented a table compiled from
the statistics introduced by the ear
riers to support their claim that revc-
nues had fallen off greatly in 1919
and in July and August of the current
year. This indicated he said. tina,
while there had been an $4,000. 900
decrease in gross revenue last August,
the actual result had been an increase
of $500. GOO in net revenues. The de-
crease in gross revenues, he said, was
due to the European war without
doubt and with the decrease in bust
ness handled would go an Increase in
capital cost because of idle equip
ment Yet that element, he argued,
was one upon which the commission
had only the opinion of various Wit
nesses as to its duration.
THE question then is, he added.
III Il is an element ON which the de-
termination of Just and reasonable
rates may properly be based
Bankers had appeared before the
commission Mr.. Brandeis said TO
show that railway credit abroad was
declining and the rate Of interest they
must pay for new capital going up,
condition which might last several
years after the war ended. This also
was classed as field Of consideration
outside the commissions proper
scope; but Mr.. Brandeis insisted that
even if considered it would have little
bearing. rhe total of railway ohli-
cations to be renewed within the next
twelve months. he explained, was
$500. goo. 600 on which an advance III
the interest of l per cent would
mean but s5.000.000 This. he insist
ed should be distributed over the bill
lion and half in annual revenues Of
the carriers of official classification
territory.
As 10 the decline of credit repeat
edly urged by witnesses as reason for
an advance in rates TO safeguard Sc
curities held abroad. Mr.. Rrandeis
asserted it had no bearing upon tn
reasonahleneSs OF rates.