Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-03-09
srAoNo SHOWING MADE ~
wesrERM cosAaiss,oNERs
AoA,NsT IhcREAsE. I
rHohNG SHOWS REvENuEs
t Atp EARNINGS ARE LARGER,
Iswa cemmissiensr crsssnts Case in
behak Of sh'pesrs - Western
Stasss Argument Backed BY Mass
81 stasistiss Whieh Places Burdsn on
RaiitSsds g Show Nssd Of Rsiss.

\ II "a I,-lL
bsS Noises. March Extraordinarily
81 the iUaitsd states arc not entitled,
to Gn Increase In freight rates on the
basis OF re showing made in the east
trn saavshosd rate case before the in.
tefSsate commerce commission.
HssSnfits Of the railroads under
present rates are not shown to be in.
adequaas. - claimed BY the carriers.
but sate IN fact adequate.
Revenues srs not declining, a.
whole. but the tsndency has been and
Il upwards.
Net revenues and gross earnings
have both ancrsassd and last year were
larger than sany year save one.
capitalisa4ioas of railroads and hoat-.
Ing Of SECURITIES has been such as to
demonstrate that the railroad business
IL not on the verge Of ruin.
Industries dependent on railroad
business are not suffering because the
railroads are not able to raise rates.
Therns PRESENTS Shippers Case.
These and similar propositions were
presented to the interstate commerce
: commission In Washington. at hearing
scheduisd to commence today, backed
up by . voluminous mass Of exhibits
and compiled tables prepared in the
rate Department of the Iowa railroad
commission tho past two weeks. They
are In the hands Of Clifford Thorne,
chairman Of the Iowa commission and
vice president Of the national associa-
t!c:: ~ railway commissioners. who in
this case acts 40 chairman OF q COM
mitteo Of railroad commissioners of
the states Of Iowa. Nebraska, Kansas.
South Dakota, North Dakota, Okla
homa, Missouri and Texas
Prior to this week the commission
at Washington has heard from a COM
inittee Of eastern railroad men, on be-
half Of the demand for an increase
Of per cent in rates, based on the
theory that revenues are inadequate and
unless greater rates are allowed the
railroads must reduce expenses CT fail
to pay dividends. The commission has
also heard. through Mr.. Brandeis. sug-
sestions as to how TO increase the re-
venues in ways other than by advanc-
Ing freight rates.
Main Issue involved.
Mr.. Thorne undertook. on behalf Of
the western railroad commissioners. 10
prepare and present the sho Eing on
the main issue involved-that Of a.1e-
quacy Of revenues under present rates.
Mr. Thorne handled the case on be-:
half Of the consumers in 1910. The
controversy 70 national In character.
because II has already been announced
that in the event the eastern railroads
win their fight, the western roads will
Immediately ask for an increase IN
their rates.
III 1t were true that the net revenues
of American railways were declining"
said Mr.. Thorne in opening the case.
"that would not establish the fact that
their present net revenues are made
quate. The revenues Of former years
may have been larger than were justi-
liable. We cannot assume, az final
basis for what Is reasonable, the par
ticular amount Of earnings they had
last year or the year before. or ten
years ago. The ultimate test of what
is reasonable, when considering an en-
lire schedule Of rates for any public
utility. whether Of city state or nation,
Is the fair value Of the property"
Mr.. Thorne called attention to the
fact that the interstate commerce
commission han declared that it can
not accept capitalization as repres-
sentjng either investment or value"
and to the fact that the country. thru
congress. has asked that national
appraisal be made to determine their
actual value.
Values Not at Stake.
ut may be that American railroads
are NOT making reasonable return up
on the value Of their property, SAID
Mr.. Thorne. I'VE can not determine
that issue until the national appraisal
Is completed. In the absence of proof
!, Of value as q basis, we are confined to
= consideration of tendencies, II the
facts show a constant decline in re-
venue during recent years. threatening
some arisis in their business. then the
commission might be justified in not
waiting until the national valuation is