Evening star., 1914-10-24
VIEWS Of THE SHIPPERS
ON R. R. FREIGHT RATES
Opposition to Application for In
crease in Charges Closes the
I. C. C. Hearing.

With the presentation of the case OF
the opposition shippers. hearings be-
fore the interstate commerce comm1s-
sion on the application of eastern rail-
roads for a general increase in freight
rates came to an end yesterday. Ar
guments will be heard next week. be-
ginning Thursday, with every indica-
ton of an early decision by the COM
| mission.
AS against the five days occupied by
witnesses for the carriers, the presen-
tation of the case of opposing shippers
occupied less than two hours, consist
ing only of a statement by Clifford
Thorne, counsel for several western
state railway commissions and ship
ners, associations Mr.. Thorne took the
position that no business depression
had been shown by the carriers that
did not equally affect shippers, and
Presents the Railway View.
The carriers closed their case with
the testimony Of Samuel Rea' presloeh'
of the Pennsylvania system. his sta'e
ment followed closely the lines OF pre-
yious evidence offered, and MS cross-
examination was brief
Mr.. Thorne asked If it. were NOT true 9
that the net revenue of the carriers ~
1919 had not equaled 7.61 per cent on
all outstanding stock. Mr. Rea adh1i @
the fleures were correct. Frank Lyon
representing coal shippers OF Pennsyi.
vania, asked II the Pennssraaa+ a,,o+ion Of
had contemplated any reductton o.
CO ries to officers and employees to meet
the emergency. Mr.. Rea sald ne oiu ~.
believe he should discuss that SuoJec1
and the question was no! pIesseu o.r-
Counsel then announced that the car
riers' case was closed. and Mr. 1hoFne
took the stand to make his statement.
Mr.. Thorne's Statement.
In part, it was as follows:
"The carriers are proposing per
cent advance in the freight rates not
only in official classification territory,
but in the through rates between all
points in this eastern territory and those
states west of the Mississippi river
which 1 represent We will pay the ad-
yances on the raw products moving TO
the east and on the manufactured PROD
ucts moving from eastern factories to
the west We catch it both ways. COM
ing and going. and we are subject to
the long hauls.
my purpose is simply to help see
that the public side of these issues is
fully presented to the commission. II
the carriers are entitled to an increase
we hope the commission Will grant IT;
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 today; likewise we favor
reductions where conditions are the re-
verse.
Not in Hostile Attitude.
There is not the slightest spirit OF
hostility in our attitude toward the
railroads We fully appreciate their
vast importance in the commercial life
of the nation.
Freight rates are not the cause OF
the present trouble. The railroads
have advanced freight rates on the
| brain. Whatever ails them. financial
difficulties. overcapitaliZation, genera
depression in business. oNersupply OF
gold-Whatever the cause, they have
| just one remedy-advanced freight
rates, a sort of cure-all or panacea.
"You can advance freight rates te
your hearts content; it will still be
hard to borrow money mat prooaplS
will continue until the war stops"
Rate of Dividends Increased.
| In conclusion Mr. Thorne said:
! THE average rate Of dividends on al
outstanding stock last year in the United
States as whole was more than double
What it was twenty-five years ago. Dur
J ing this period the per cent Of stock-pay
ing dividends has steadily increased. ant
the rate of dividends on dividend-payint
stock has steadily increased. The aver
age dividend rate in the United States i:
more than one-third greater than it is il
Great Britain, as given in the official re
ports to parliament. The facts are thai
government regulation in the United
States has been the greatest blessing oul
| railroads have ever had"