The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-10
EIGHT STATES OBJECT
TO ADVANCE OF RATES
Chairman Thorne Of Iowa Com.
mission Presents Protest
to Commerce Board.
DENIES RAILROAD CRISIS
lie Says Eastern Roads Are in
a Better Condition Than
Ever Before.

wAsHrSGroN March e.--On behalf Of
the railroad commissions OF eight West
ern States clifford Thorne chairman OF
the railroad commission OF Iowa. made a
protest before the Interstate Commerce
Commission to-day against the applica-
ton OF Eastern railroads to increase their
freight rates.
Mr. Thorne spoke for the State commits
sions OF Iowa. North and South Dakota.
Kansas, Nebraska, Alabama. Arkansas
and Missouri. lie contended that the net
annual gross income of the Eastern rail-
ways that have apphed for authority to
increase their freight charges Is greater
now than ever and that their equipment
10 in better shape than at any time in
their history
Mr. Thorne took n far more optimistic
view OF the railroad situation than any
witness 50 ttr heard by the commission
In regard to ,he proposed increased rates.
He said the protest by the eight states
did not ir.sn that they vert opposed to
the elimination Of free services or the
making of special charges for services that
are not adequately paid for to-day Mr..
Thorne insisted that as a general propo-
sition the advances sought are not war
ranted.
ITO unravel intelligently some of the
knotty problems connected with this sub
iect is going 10 require time. said Mr..
Thofne. You have also propouuded a
series OF interrogatories that go To the
heart OF this whole railroad problem which
facee US. The railroads claim that II will
require seveeal months hard work to pre-
pare answers to these interrogstories.
The Pivotal Issur.
.But Mr.. willard and his associates are
here. through the newspapers and other
wise, demanding immediate relief from "A
situation which they claim Is intolcrable
The pivotal issue Ia this case to-day has
narrowed down to the question whether
there is any crisis in the railroad industry
iustifying an immediate advance in freight
rates
I'VE will be able TO prove TO YOU con-
clusively that there is no crisis whatever
In the railroad business which will pre-
vent n denial Of this per cent. advance
proposed 10y the railroads. TO be followed
by an intelligent. orderly. fair investi-
CATION of the whole subject Of special
services as applied TO the various changes
that may be subject to investigation and
ruling by commission.
AT this time the carriers must neces-
sarily rest their entire case on present
tendencies
we cannot determine whether those
ago were reasonable or not hut We can
consider whether the tendency Of earnings
since that has been up or down. and fur
Their whether such earnings have induced
capital Investments or retarded the same. "
Cali. Revenues Ample.
Mr. Thorne maintained that present
revenues are ample. but admitted that the
cost OF labor had gone up. He placed in
the record many exhibits of figures which
he said bore out his conclusions. He con-
tinued:
THE railroads commenced their nation
wide complaint about increasing costs and
decreasing revenues during the year l9l \
The net revenues in this Eastern district
In the specific territory involved in this
case during each of the four years 1910,
1911. 1912 and 1913 have been greater
than for any preceding year in their entire
history. In no other year did revenues.
gross or net, attain the high water mark
reached In any one OF these years.
Last year their net revenues were
more than 800 100000 greater than In
1910. Last year they were 100 per cent
greater than they were fifteen years ago.
The railroads claim that their credl,
has been ruined and that their securities
are no longer attractive 20 investors
will prove that their securities sell for
prices as high as those OF any other corn
Danies on the market AZ the presen,
time"