Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-03-28
SAYS FREE SERVICE
lessons REVENUE
Louis D. Brandeis Gives Rea.
sons Against Increasing
Railway Freight Rates.

Louis D. Brandeis, counsel for the in
terstate commerce commission in opposi-
ton to the proposed per cent increase
IN railroad freight rates, today submit
ted statement showing that free serv-
ices rendered shippers by railroads in
classification territory result in serious
depletion of the revenues of the roads.
The special free services under consider
alton by the commission were free stor-
age. free warehousing, free loading and
unloading of cars, free lighterage, free
elevation of grain and various other free
terminal services.
Mr. Brandeis asserted that the cost to
the railroads of these free services was
SO great as to absorb from % to 30 per
cent of the freight rates receipts and in
certain instances more than the entire
receipts were absorbed, resulting in a
substantial cash loss to the road
Examples Cited.
Mr.. Brandeis states that in Philadel-
phta shippers who choose to patronize
certain warehouses designated by the
Pennsylvania railroad have their freight
unloaded from the cars, stored four day
and then carried to the wagon free of
expense to the shipper, the expense
of this operation being borne by the
Pennsylvania railroad. This free serv-
ice cost the Pennsylvania at Philadel-
phia. through three of the four subsi-
died warehouse companies S2S2 261 in
the year ended June 80, 1873 He point
ed out that unless the freight passed
through these warehouses the road made
no allowance to the shipper for loading,
unloading or warehousing.
Besides the discrimination between
shippers there is Furthermore a discrim-
nation between warehousemen,'' Mr..
Brandels asserted. The provision on the
part of the railroad appears to be strik-
ingly improvident,' he said, from what
ever point of view it may be regarded.
Why should the Pennsylvania railroad
throw away money in paying for that
service which other warehousemen would
perform without pay from the railroad
because of the storage charges paid by
the, consignee?'
Mr.. Brandeis instanced a shipment of
twenty cars from 1vorydale. Ohio. to Buff
falo, on which 80 per cent of the total
revenue was for free services.
Instances were cited showing that the
Pennsylvania railroad carried freight on
winch the free service cost was so great
that the service might as well have
oeen presented as an instance of free
transportation, because. the cost exceeded
the total freight charge received One
OF these instances was in the handling
of grain from Buffalo to Philadelphia.
Cost to Other Roads.
Mr. Brandeis declared that the free
service cost to the Erie railroad at New
York harbor as applied to 1888 cars in
vestigated. amounted to "at least so4 a
car"-avout $435,672
instances also were given of free serv-
ices at Baltimore. one. in particular of
the handling by the Baltimore and Ohio
of twenty-one carloads of tobacco from
various Virginia points to New York city
for export
The depletion of revenues by carriers
through free unloading. storage and SIM
liar terminal services is even more
marked on certain shipment, large in vol
ume, to New York city said Mr.. Bran
'deis. He instances a shipment of twenty
five carloads of -four from Buffalo by the
west Shore road in which nearly IS per
cent OF the gross revenues were consumed
in terminal charges
Mr.. Brandeis urged that a discontinue
ton OF such services to certain shippers,
or a reasonable charge for them would
vastly increase the revenues of the roads.