The Washington times., 1914-04-28

Arguing before the Interstate Com
merce Commission today, in support Of
. the application OF the Eastern rail-
roads for per cent increase in rates.
J. L. Minnis. general counsel for the
Wabash railroad, declared that the
credit of. the railroads will be destroyed
if the increase is denied. You cam
not entica capital by threats and CO.
ercion," he told the commission.
George F. BrownelI, vice president of
the Erie. also presented arguments in
support OF the roads application.
At the resumption of the hearing Of
arguments today Chairman Harlan an
nounced that the railroads would be
given ten-and-a-halr hours to present
their side. and the shippers cleven-and-
a-half hours. This will bring the ar
Cuments to a close Friday afternoon.
No intimation has come from the COM
mission as to the time when a decision
on the roads application may he eN-
pected. but this will be in less than a
month it is generally believed.
Says Outlook Is Bad.
Attorney Minnis in his argument TO
the commission declared the outlook
was particularly bad. Il may be dis
Couraged because | am representing a
railroad which is in the hands of a Ie-
oeiver," he said. but I know what it
is to try to run a railroad without
capital. We have not had money to
repair our engines or our tracks or TO
give adequate service to the public
Answering the arguments of Louis D.
Brandeis. in his brief that the roads
by eXertlng economics and through
methods of efficiency could manage
without increasing their rates. Mr.. Min
mis- declared that a railroad does not
think of efficiency when 1t Is trying to
keep above the surface
The shippers and the consTminL pub
lie. he declared. should favor the roads
application, as lie held il TO be to the
advantage of the public 10 pay rates
which would give the roads credit and
enable them to keep their lines in re-
pair. Tho country Will nave L" bear
the waste tt<t will come through any
clared.
George F. Browncll told the Commits
sion that economic and financial conIi-
tioTs justify an increase III freight
rates. The railroads. he said. form the
"Ountry's greatest industry. save only
that of agriculture. In them Is invested
more than a tenth nf the nation IS
wealth. and 100000 men are employed
Not Able to Control Charges.
Until recent years" Attorney Erown-
ell added 1T was like other industries,
crease its charges TO meet changed con-
ditiOns. All this has changed. II has
lost. in large measure, its ability to
control it expenditures.
Because of its quasi public Charac-
ter, II is subject to governmental regu-
laticns and control to much greater ex-
tent than most other industries. IT
has been subjected to numerous re-
quiremcnts Of legislatures and regula-
tory bodies. moth Federal and State,
which have increased greatly its "per-
ating and tis capital expenditures.
Many additional legislative require
ments OF this character are in various
stages Of incubation.
The railroads are not here question
ing the wisdo NOR eXpedlency Of these
requirements, and will continue To the
tn" financial burdens they impose: but
they ask that they be not deprived Gt
to accomplish the taSE--nnd
reIEuEC rative rates are the very sineWs
Of that strength.
Other industries" Mr. BrOwncll
added, have been readjusted to meet
these new conditions, and both labor
and canital require and secure higher
rates than heretofore. But in the rail- |
road industry this adjustment has taken
place only with respect to expenditures
for wages material. interest, etc. but |
not with respect 10 the railroads
charges. They have been restricted by |
statute from adapting themselves Ike |
other industries TO the new economic |
and monetary conditions.
why should they not be given per- |
mission TO ADOPT their rates to these !
general economic changes just as the |
or merchant, operating In |
a free market. without restraints of |
legislation limit nG his power to fix |
his charges or prices, has been able to |