Evening star., 1914-10-30
RATE HEARING CLOSES
WITH THORNE'S SPEECH
Declares No Reason, Other Than
War, Has Been Advanced for In
crease of Railroad Tariffs.

Rehearing on the application of east
ern railways'for a general freight rate
increase was concluded today before
the interstate commerce commission.
1t is expected the case will be consid-
cred by the commission next week for
an early decision.
Clifford Thorne, speaking in the in
terests of numerous shippers associa-
tions, summed up the opposition to the
advance He declared nothing In the
way of new developments beyond the
European war had been brought out
to justify the renewed appeal.
Mr.. Thorne asserted that the financial
statements for the current year, filed
by the carriers to support statements
of Inadequate revenues, afforded no
fair basis for comparison with preced-
ing years because the entire policy
of the roads as to rules of accounting
maintenance charges had been altered.
He said the 1914 charge showed great
Increase despite falling revenues, while
previously those two items had always
moved in the same direction.
Gerard Gives Figures.
George F. Brownell of counsel for the
railroads devoted much of his argu-
ment to the power of the commission
to grant the relief sought on the gen
eral showing made at the rehearing.
He said Congress had empowered the
commission to reverse itself II new
facts warranted, and declared the pre-
vious ruling. denying increases, would
have been greatly altered had condi-
tfons been as they are now.
Mr.. Brownell read a cablegram from
Ambassador Gerard at Berlin, which
provoked considerable comment by
Commissioners Clements and Meyers.
The message compared Prussian and
American freight rates, showing the
latter to be lower, and said the am
bassador had been informed by the
confidence of investors In American Sc
curities was shaken by rising wages
and reduced freight rates.
At the conclusion of Mr.. BrowneIl's
argument Chief Counsel Patterson for
the carriers announced that the case
was concluded and the commission ad-
journed.
Brandeis' Contention.
Asserting that if the interstate COM
merce commission modified its previous
ruling which denied the railroads the
right to increase their rates, Louis A.
Brandeis, representing those opposing
the increases, declared at the afternoon
session yesterday 1t would exceed it's
legal powers and invade the province
OF Congress to declare governmental
policies.
Mr.. Brandeis was followed by F. B.
James and F. L. Paulson, representing
shippers of brick and tile; Frank Lyon
and Charles NJ. Johnston, appearing for
pennsylvania coal producers; Luther NJ
Walters. in behalf of lumber and live
stock shippers. and Rush Butler, coun-
sci for the Chicago Association of Com
merce. All maintained that nothing
had been brought out at the new hear
ings to justify the advance of any
specific rate, and that the relief sought
by the carriers was beyond the legal
power of the commission to extend
Discusses Revenues.
Amplifying his position. Mr.. Brandeis
presented a table compiled from the
statistics introduced by the carriers to
support their claim that revenues had
fallen off greatly in 1913 and in July
and August of the current year. This
indicated. he said, that while there had
been an eight million dollar decrease
in gross revenues last August, the ac-
tual result had been an increase of
100000 in net revenues.
AS to the decline of credit repeatedly
urged by witnesses as reason for an
advance in rates to safeguard securi-
ties held abroad, Mr.. Brandeis asserted
it had no bearing upon the reasonable
ness of rates, but only upon the finan
cial policy of the government, with
which another government agency is
called upon to deal"