Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-04-28
Chairman Harlan of !. C. C..
Gives Notice Regarding
Petition for Increase.
McGINNIS URGES MEASURES
TO ATTRACT NEW CAPITAL
G. F. Brownell Makes Plea for Re.
munerative Rates-Senate Passes
La Toilette Resolution.

chairman Harlan Of the interstate
commerce commission announced today,
upon resumption of arguments on the
petition of the eastern railroads for an
increase of per cent in freight rates
that discussion must end Friday.
J. l.. Minis. general counsel of the
Wabash and representing Central
Freight Association roads. pointed out
that Mr.. Brandeis' brief for the COM
mission conceded that the railways in
Contra! Freight Association territory
needed additional revenues.
In view OF this and of the generally
accepted belief that the people of the
country were opposed to government own
erShip of railroads. the commission, he
urged, having previously held that the
roads were entitled to make a reason
aola return upon their property invest
Inent, ought To adopt such means as
would insure TO the railways such profit
as would attract new capital and enable
them to maintain and TO extend their
lines in conformity with the reasoua BILE
demands of the public.
That fundamental economies and
financial conditions justified an advance
~ freight rates was argued by George
.. Brownall. vice president and general
-ounsei of the Erie railroad
Laws Impose New Burdens.
The new burdens imposed by law upon
railroads had not been enormously in
creased they now would be in highly
prosperous condition. but it is net in
come and not the gross that counts.
Until recent years the railroad indus
try was. like other industries responsive
to the law of increasing returns. under
which an increase in the volume of traf-
nc would produce a decrease in the unit
nf.N and MOI ine n
crease more rapidly than operating ex-
penses.
IAN this is changed. 1t has lost in large
measure its ability to control its expendl-
lures and it is subject to governmental
regulations and control to much greater
xtent than most other industries.
lit has been subjected to requirements
Of legislatures and regulatory bodies,
both federal and state, which have in
creased greatly its operating and its cap
ital expenditures"
The railroads, he continued. did not
question the wisdom or eXpediency of
these requirements, and will continue to
the best of their ability to bear and sus-
tain the financial burdens they impose;
hut they ask that they be not deprived
Of strength to accomplish the task-and
remuneratve rates are the very sinews of
that strength.
La Toilette Resolution Is Passed.
Without debate the Senate today pass
Ell the La Toilette resolution directing
the interstate commerce commission to
send TO the Senate all communications it
has received which were ''manifestly de-
signed 10 influence its decision in the
freight rate advance case Senator New
lands announced that members of the
commission had no objection to the i'm
mediate passage TO the resolution.
Briefs in opposition to an increase OF
freight rates asked for by the eastern
railroads were today flied with the inter
state commerce commission on oehai1 OF
the Pittsburgh Coal COMPANY the New
Pittsburgh Coal Company and the state
railroad commissions in the eastern clas-
sifications territory.
The brief of the coal companies asserts
that exhibits of the carriers show that
gross and net returns for 1913. particular
ly for the coal-carrying reads are more
satisfactory than they have been In the
past.
Of pauanpec IIrCad