The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-29
SAYS RAILROADS
WASTE INCOME
Louis d. Brandeis, Commerce
Boards Counsel, Attacks
Free Services.
REVENUES "DISSIPATED"
Investigators Assert Penn
sylvania Has Subsidized
Warehouses.
ERIE Is ALSO ACCUSED
Charged With Discriminating
in Favor Of Standard
! Oil Company.
ERIE Is ALSO ACCUSED

/ WASHINGTON. March 2s.--t,ouis y.
3Nadeis. counsel for the Interstate Com.
ansfce Commission, In the advance rate
Ga0 introduced In evidence before the
commission to-day the results OF In
vsstigations made by the commissions
examiners into the free services performed
by the Eastern carriers for some shippers.
Mr. Brandeis contends that there II n
great and unnecessary depletion OF the
revenues OF the railroads through these
so-called leaks and the commission has
shown a disposition TO locate and check
these before granting any increases.
Mr.. Brande!s chares that the Pennsyl-
vania Railroad is discriminating In favor
Of certain warehouse companies and that
the road has lost in one year as much as
$3.50, 900 through free services to sub.
sidised warehouses"
The commissions attorney was par
ticulariy harsh on the free services
granted to shippers in New York city and
contended that they cons tituted a dis
elimination as against shippers in Jersey
City and other nearby points
Erie and standard OIL.
The commissions experts presented the
"Details OF freight transactions between
the Erie Railroad and the standard oil
Company in which II was con;ended that
the total freight rate obtained was prac-
tically' consumed by the terminal charges
at New York city which were borne by
the railroad
The commissions examiners presented
oums cases In which 1t was. contended that
the railroads through these special free
services and allowances paid what actually
amounted to bonus for the privilege OF
carrying freight free over their lines.
A summary OF the results Of the in
vsotigations by the commissions experts
was given out by Mr.. Brandeis IN me
form Of statement to-day. The Is
euance Of this statement at the commits
sion's office was regarded "a significant.
BY many II was thought to indicate plan
on the commissions part to combat with
publicity the efforts which are being made
by many OF the railroads to hurry the
commission in its decision on the adj
vanced rate ease.
shippers of freight by the carload"
soyu Mr.. Brandes, must ordinarily load
and unload cars at their own expense.
Shippers OF freight are ordinarily entitled
to only two days free use OF cars at
destination. For some reason. some rail-
roads have made exceptions at some
places to these rules and the exceptions
are very expensive 10 the railroads.
such pei sons wlo choose 10 patronlze
certain warehouses designated by the
Pennsylvania Rallroad-the Merchants
Warehouse Company. the keystone Ele-
vator ana Warehouse Company. the Penn
sylvania Cold Storage and Market Com
pany-have their freight unloaded from
the cars. stored four days and then car
risd to the wagon free OF expense to the
shipper. the expense of that operation b.
Ing I'm such case borne by the Pennsyl-
vania Railroad. which free service cos,
the Pennsylvania az Philadelphia through
three OF the four subs died warehousl
companies t2s2.2si in the year ending
June 80. 1913
~Unsu bsidis~d" warehOsses.
IT -four or grain or hay or groceries
tn M III. ~ a -sl, Il