Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-02
RATES CASE DECISION
PROBABLE IN A MONTH
Inquiry Regarding the Adequacy of
Railway Revenues Is
Completed.

Within month. it is expected. the in
terstate commerce commission will hand
down its decision in the so-called ad.
vanced rate case, arguments in which
were finished late yesterday afternoon
President Daniel E Willard of the Bal.
timore and Ohio Railroad Company
closed the case for the roads. In ad.
journing the sitting Chairman Harlan OF
I the interstate commerce commission an.
nounced. with what was regarded as
great Significance: This concludes this
phase Of the case"
1t has been pointed out that the funda
mental question of the inquiry was
whether the present revenues of the rail
roads were adequate to their needs Since
negative answer to that question would
end the case. the chairlnan's announce
ment was accepted by those present as
indicating there will be other phases OF
the case in the future. and that the COM
mission proposed to adopt Mr.. Brandeis'
view that the present revenues of the
roads are not adequate
Second Question Propounded.
The next phase of the proceeding would
be the second question propounded by
the commission:
how are the additional revenues TO
be obtained?"
In his closing argument, Mr.. Brandeis
as special counsel for the commission
commended that added revenues could be
obtained by levying charge for the
sporting of cars: for services now rem
deTed free by the roads, such as lighter
age, wharfage and warehousing and by
the elimination of allowances now made
to industrial railways and, at present
absorbed in the rates.
Mr. Brandeis also discussed the cost
of passenger service. He showed that
the Pennsylvania railroad in 1915 made
less than one-thrd of ! per cent on its
passenger service, and that the cost of
the service even under superior man.
agement was increasing constantly.
Other large systems which he cited
actually were shown to be losing money
on their passenger service. 1t was sug-
many railroads find themselves was
due. in a measure. to the growth of such
cities as New York and Chicago.
Conserving of Revenues Enjoined.
How can the revenues apparently need
ed be obtained?" asked Mr.. Brandeis in
conclusion "All interests must have OPP
portunity to be heard. Opportunities for
obtaining additional revenues are such
as to show that not merely sJ0.O00,0oo
year. but sum more nearly approaching
$1O0,0OO.OOO year is easily within the
grasp of the carriers. if methods of con-
serving revenues which are being sug
gested are adopted
In his closing statement President
Willard said that during the last ten
years the eastern roads had expended in
additions and betterments of their prop
critics. s200.OO0,o0O year. and that sum
quite equal to that would be required
during the next ten years. He therefore
urged that the advance of D per cent be
permitted, as that would provide for
small and. subsequently uniform advance
upon all freight"
He said the carriers had not overlooked
the fact that other means of raising reve-
nue. might be adopted. but in all the cir
cumstances they believed the horizontal
increase was the best and most equitabl
method to adopt.
Mr.. Willard urged that the needs of the
carriers was of an emergency character
LAT the present moment he said. the
carriers are compelled by circumstances
to follow policy of enforced economies.
which, if continued. means less efficient
and less satisfactory transportation II
seems to me that our broad economic
policy should contemplate more and bet
ter railroads rather than fewer and poor
err railroads. This commission has well
said that commerce and industry cannot
afford to wait on transportation facili-
ties