The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-29
Big EXPENSES PLEA
FOR RATE INCREASE
Eastern Carriers Cite Growth in
Mileage, Higher Wages
and Safety Plans.
LOWER TOLLS IN THE WEST
Attorneys for Shippers. Who
Are Protesting, Will
Argue To-day.

WASHINGTON. April 2s.--The attorneys
representing the Eastern carriers apply
ing for a 8 per cent increase in freight |
rates finished their opening argument to- !
day. They will he followed tomorrow
by attorneys representing shippers who |
are protesting against the increases.
The chief arguments on behalf of ship |
pers will be made by Frank Lyon and
Charles NJ. Johnston. representing pro-
ducers OF bituminous coal. and Wade p.
Ellis. representing shippers OF low grade
commodities. II Is expected that Louis
| d. Brandeis. representing the commission.
| will close the case OF the protestants
either tomorrow or Thursday and then
the attorneys representing the carriers
! will be permitted to make the closing ar
gument.
| The opening argument OF the railroad
attorneys has covered the entire case OF
the carriers as directed by the commits
sion.
George r. Brownell. general counsel OF
the Erie Railroad Hugh l.. Bond Jr OF
the Baltimore and Ohio Railroad, and j.
l.. Minis. general counsel of the Wabash
Railroad made arguments to-day on be-
half OF all the carriers petitioning for the
| Increase, but Mr.. MINIS particularly for
the carriers in Central Freight Associa-
ton territory.
This territory comprises the States
lying between the Mississippi River and
Pittsburg and Buffalo. south to the ohio
and Potomac rivers In this territory Mr..
Brandels and others concede that the car
riers are entitled to an increase.
Rates in East Lowest.
Mr. MINIS said that the railroads in
Central Freight Association territory
comprised more than half the area and
more than % per cent of the railroad
mileage involved in the present proceed
ing and that they deserve special consid-
Grafton. He said the records of the COM
mission would show that rates In this
! territory are substantially lower in every
instance than the rates for similar dis
, tances in other territories.
Mr.. MINIS divided the roads in the
| territory into a series OF groups. one
group he said had increased It's mileage
In 1913 over 1910 and increased it, prop
erty investment $225.502.220. bu, that in
, the same period while operating revenue
increased s7l.39s.933. net operating in
come decreased si5.asl.7s4 Mr. MINIS
said the decrease In net corporate income
In this group in 1918 "a compared with
J 1910 amounted to s23.267.4l&.
Mr.. MINIS gave figures for other
groups. making like showings and he
maintained that even with the 5 per cent.
! asked for many OF the roads will not be
able to make ends meet. He indicated
that the carriers were already prepa RIM
'ar'ns affecting Interstate and intrastate
rates. lie said In this connection:
obviously the rates in Central Freight
Association territory will have to be ad-
Justed to higher level in order 10
enable the railroads OF the territory 70
discharge their duties to the public in a
safe. efficient and economical manner.
Expenses Have Crowu
Mr.. Brownell said that In recent years
there had been increases all along the
line In the operation of railroads.
y THE evidence in this case has demon.
= strated.' he said. that there mas been an
n advance In the prices OF commodities OF
$ broad and general character, and that
o In so far as the advance in prices has
I been uniform in different industries and
= In so far as the increase in wages oi
4 | labor as corresponded to the advanc.
r in prices. equality Of conditions unde,
@ the present value OF the dollar have beer
establ she'd but that the railroads. how.
\ ever. have not shared in the advance az
:. have other industries and wage .arnrs
y Mr., Brownell reiterated the statemen,
- made yesterday by the attorneys tina,
i, unless the railroads are permitted TO in
crease their revenues by reasonable in
creases in their rates IL will only b,
e "A question OF time when there viii re,
y suit not only the reduction or suspcns or
J. OF dividends. but In some cases default
e in the payment Of interest and Other
4 obligations.
s Hugh l.. Bond. on behalf OF the Baiti
- more and Ohio Railroad in particular
n declared that that road in 1913 rait
S+.O69,0lj more in wages than in 1910.
Is AFTER increasing our property invest
e ment s56.0l6,0l6, or IL per cent, anc
l. while increasing our gross revenue bS
3 "a per cent. since 1910 there was not onl,
th.. inc. l,, "a ,