The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1914-02-11
OPPOSES FREIGHT
!. RATE A INCREASE
Special Counsel Brandies Will Show
How Railroads Can Economic And
New Prices Will Not Be Necessary.
WOULD PAY FOR sPoTT1NG
Says Companies Would Save Millions
If Patrons Were Required To Settle
For Free Service

kilt 3 - FL : 2
From Congressman G.. H. LTavenner.
Washington February 1.-THE
answer Of Mr.. Brandeis, special coun-
sci for the Interstate Commerce, to
the appeal of the railroads for per-
i mission to raise their rates five per
cent will be: Save the money you
need by cutting down needless and
profligate expenses OF which you are
now guilty. -..r..-.- -.-. .. -. .-a,
Two years ago the railroads were
thwarted by the Boston lawyer when
they came to the Commission with
an appeal for increased rates. Then
Brandeis' reply was: economic. This
year his answer will be the same,
but 1t will go into great detail along
new lines of economy to be pointed
out. f.. ..@ at'.st
The railroads have come before
the Commission with the claim that
they need an additional $7O,O0O,OOO
a year because of wage advances and
increased cost of living to rail-
roads. Brandeis will attempt to
show this month when the hearings
start that this sum can be realized
by the railroads without any in
creases in their freight rates. They
need only change few of their prac-
tices. The changes can be easily put
into effect. ,--..y. .. ~. g.~
- Recently the Commission has
shown to the railroads one great
economy they can practice. This is
in the matter of paying exorbitant
r"proportionals', or shares of a
through freight rate, to the so-call-
ed tap-line or short-line railroads.
These are usually private industrial
roads built by concerns to connect
their plants with the regular rail-
roads. BY reducing the freight al
lowances to these roads, the Com
mission has shown that the railroads
can save to themselves from $751;
100000 to $20.000,0OO- year. .s.-... 700
OF course, the railroads do not like
to practice this economy. These tap
line allowances amount to rebates
given to the larger industrial cor
porations, which are usually pretty
closely linked by ties of stock owner
ship and business association to the
railroads themselves. 1t is only cor
poration of the larger sort which can
afford to build its own railroad to
connect its mine or will with the
trunkline railroad. Therefore, since
too great payment for the proper
tlon Of hauling done by this tap-line
Is the same as a freight rebate, it
Is only the larger corporations which
can receive such favors. ...
Here then is a saving of approx
mately $20,0O0,O00 year which,
by the Commissions order, the rail-
roads will be compelled to save,
leaving $5O,O0O,O0O still to be made
up. '..s~-s... Eo@# .r.' z~' 81.
40 BY an increased rate? No. Bran
deis will reply, but by practicing
other economies which can be point
ed out. -..a-t ..s"" t-1.ali ,..
For instance. A vast volume of
a railroads clerical work consists
in sporting" or tracing shipments
and cars which have gone astray or
which are delayed in reaching their
destinations. It develops that most
of this service is rendered by the
railroads free to the shippers who
make complaint. 1t will be proposed
by Brandeis that the railroads exact
stated charge for this service.
Such a thing was done in the case
of the Boston & Maine Railroad. The
charge for spotting assessed by the
railroad was fixed at SO cents per
car, and the resulting revenue to the
road amounted to $350,OOO a year.
Suppose similar charge were exact
ed by the other railroads of the coun-
try. The total revenue would amount
to millions of dollars, and would cut
another large slice out Of the amount
the railroads Claim they must have
4 to exist. If necessary. the charge
could be made 81 per car ~ l
Another service now rendered free
to large shippers is ferry a service.
The extent of this will be brought
out by witnesses. An inquiry into
the amount Of free service IN the
10 way of lighterage in New York and
in passage of the Chicago freight
81 tunnel will be conducted to see how
much free service the railroads are
rendering there. Then it is ques-
tionable if railroads should give free
service in shunting cars on indus
] trial spur tracks. So @9s.
In fact there are many ways in
which the railroads might econonize
and save their $4,000, 900. 1t is by
no means certain that the five per
cent increase in freight rates will be
granted.
4z-ys. Mesaames d. l.. Burgess and M. AZ