Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-10-24
IHORN[ RIDDLES
RAILROAD PLEA
SAYS n RAILROADS ARE TO BE
VOTED WAR TAX. OTHER IN
pusTRlEs SHOULD BE.
PROPOSES ASKING FEDERAL
AID FOR IOWA EGG INDUSTRY
Show. Shippers Of Middle West Pay
Rates Both Coming and Going
Says Roads Must Meet Present
Emergency by Using Accumulated
Surplus or Reducing Dividends.

Surplus or Reducing Olvloenos'
Washington, Oct. 24.-'If 1t is right
Tor the government to shield the rail-
roads from the effects Of the war; II 1t
is right for the government to make
good the losses Of people IN different
Industries. I am going to propose a
measure that will require every hen in
Iowa to lay an egg every day, and II
she fails to do so. that the government
shall make up to the owner Of that
hen the value of the egg she did not
lay
This statement was made by Cliff
ford Thorne, counsel for several west
ern state railroad commissions, ship
pers' associations, in presenting the
ing before the interstate commission
on application OF eastern railroads for
general increase in freight rates.
The hearings came to an end Fri
day and arguments will be heard next
week with every Indication Of an early
decision by the commission. The pre-
sentation Of the case Of the opposing
shippers occupied less than two hours
as against five days occupied by wit
nesses for the carriers. Mr.. Thorne
took the position that no business de-
preston had been shown by the car
riers that did not equally effect ship
pers reported Joined in the state
ment.
Arguments will begin next Thurs
day morning and probably will be
concluded Friday.
Railroad Man cornered.
The carriers closed their case with
the testimony of Samuel Rea, presi-
dent of the Pennsylvania system. His
statement followed closely the lines
of previous evidence offered and his
cross examination was brief.
Louis Brandeis, special counsel for
the commission, drew Mr.. Rea's at
tention to the decision of the commits
sion in the original per cent case,
which pointed out its inability to see
the Justice Of raising rates on freight
shipments to conduct the passenger
traffic shown to be operated at a
deficit.
Has anything occurred since that
ruling which in your opinion justifies
it's modification now?" Mr.. Brandeis
asked.
Nothing that know off, admitted
Mr.. Rea,
Has there been an increase in your
labor charges In the period:?"
Not that ] recall"
..HaFs the prices Of railway sup-
plies advanced to your knowledge 2'
No.
Mr.. Thorne asked If It were true
chat the net revenue Of the carriers in
1913 had not equalled 7.S1 per cent
on all outstanding stock. Mr.. Rea adj
mitted the figures were correct. Mr..
Lyon. representing coal shippers Of
Pennsylvania asked II the Pennsyl-
yania system had contemplated any
reduction Of salaries to officers and
employees to meet the emergency. Mr.
Rea said he did not believe he should
discuss that subject and the question
was not pressed,
Thorne Defends Shippers.
Counsel then announced that the
carriers case was closed and Mr..
Thorne took the stand to make his
statement
"The carriers" Mr. Thorne said. "are
proposing per cent advance in the
freight rates. not only in official CLASH
fication territory but in the thru rates
between all points in this eastern ter
ritory and those states west OF the
Mississippi river, which represent.
I'VE will pay the advances on the
raw products moving to the east, and
on the manufactured products moving
from eastern factories to the west.
1--WE catch it both ways, coming and
going; and we are subject to the long
hauls.
Third Attempt to Get Raise.
'sThis is the third time American
railroads have sought to force gen.
eral advance III freight rates. In 1910
thev claimed crisis existed /. Instead
to be the most prosperous year in the
whole history Of American railroads.
In the original per cent case. bas-
ing their claim on the year 1913, the
claim of a crisis was again made; ard
YOU concluded that there is no crisis
in the condition of the railroads in Of
fetal classification territory. taken as
a whole
Now, for the third time. the rail-
roads claim there is q crisis. Today
they have some foundation for their
claim. But this emergency upon which
the carriers are relying today affects
practically all Of us in the same man
ner.
Railroads Ask War Tax.
"The railroads are asking for sort
of war tax; they are asking the gov.
eminent to lift the burden off part of
the community and shift it over to the
shoulders Of others.
.The present emergency can be met
in either one or two ways:
"F'irst-By the use OF accumulated
surplus. or
"Secsnd-By slight reduction in
dividend rates.
'The company that has wisely hus
banded a substantial surplus during
the last ten years of unprecedented
prosperity can now meet the situation
easily By a resort to its accumulated
surplus. A company that has not ex-
ercised this precautich can reduce its
dividend rate.
DEMOCRATIC LIE NAILED.
Erroneous Figures Given Out Regard
ina Cost Of Capitol Extension.
o1N