Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-03-30
Henry Wallace, of Iowa,
First Witness For Ship
pers at Rate Hearing.
FARMER SIGNALED
AS RAILROAD GOAT
Wallaes> Compares Earnings Of Land
Owners and Railroad Companies as
Argument Against Desired lnersass
II II Freiaht charsss-clifford Thorne,
Of state Railroad Commission, Makes
Opening Statement.

Of State Railroad Commission, Makes
Opening Statement.
Chicago, March 30.-The taking OF
testimony in behalf Of the shippers In
their opposition to the request OF the
western railroads FOR material ad-
vances in rates was begun here today.
after Clifford Thorne. Of Iowa, made
the opening statement in behalf OF the
shippers OF the western states affected.
"The railroads in seeking high rates
are attempting to shift the burden
on the farmer" testified Henryc. Wall
lace, of Des Moines, the first witness
of the shippers, who appeared as an
agricultural expert.
Farmers Earnings Small.
Farmers investments he said,
yield only from to per cent, while
the roads are asking to per cent as
proper yield. In other words the
roads ask greater yield even In un-
favorable years than a farmer obtains
the most favorable years. The average
farm investment is $4,000 and in call
culating from or per cent income
the farmer allows only $500 to $500
& ia year for his own labor. Yet the
railroads now ask that the farmers
help them out. Almost all the pro-
posed increases are on agricultural
products.
Iowa farm property is worth $4,000
sO0. 900, yielding per cent, while the
.ailroad property in the state Is $780,
1000, or less than 10 per cent OF the
farm value, and the railroads want on
this investment to 9 per cent.
Put Burden on Agriculture.
I 1.-THE needs Of labor for higher
wages and the needs Of the railroads
for more revenue are constantly be-
fore the public, but the needs of the
I f1rmsr sare asadonaa referred to. The
farmers are anxious that the roads are
efficient and that they pay good in
terest to the investor. It is to their In
terest that the roads be kept UP. but
the farmer should not be called on to
bear this burden -
How many automobiles do the far
mers Of Iowa oWpi?" asked G. G..
Wright, general counsel for the rail-
roads.
II don't know, /. never figured it out"
They own great many don't
theyg-
Il couldn't say how many"
Things lon. pretty had for the Iowa
farmer Judge by what you say"
You can put your own interpreta-
tion on it,
Thorne Speaks For Shippers.
Clifford Thorne, chairman of the
Iowa railroad commission, in behalf
-. Sfv,or oh IN ho uo H..
ern railroad freight rate hearing out
lined before Interstate Commerce
Commissioner w. NJ Daniels today, the
opposition OF the shippers to the freight
rate increases proposed by forty-one
western railroad systems.
The railroads are seeking to have
present rates increased on certain COM
modities, which, they assert. at pres
eut do not yield them >a fair profit.
The total increases II granted, ac-
coEdinE to the railroads. would in
crease their revenue $10.000.000 a
year.
The railroads have been presenting
their side Of the case since March, 4.
Mr. Thorne,s statement, at the hearing
today was the beginning Of the ship
pers' case He said:
During the past four weeks this
commission has heard the testimony
offered by the officials of western railS
roads, In favor Of an increase in their
Transportation charges. aggregating
millions Of dollars annually.
I'VE will now present to you the evil
dence on behalf of the producers. ship
pers, and consumers Of this western
part Of the nation.
"Our obpect is not to Nuke q gener-
/ al onslaught upon the credit Of these
western railroads. Tho result Of our
efforts viii be rather to help establish
Il the soundness and strength Of their
credit.
AZ indicating conditions In the ter
ritory involved, only the testimony of
the presidents Of the Chicago Great
Western railroad, the Missouri Pacific
railway and the Missouri, Kansas &
Texas railway was introduced. Moth
Ing further need be said. This COM
mission and the public knows whether
they represented typical lines or weak
lingG This procedure 10 in marked
contrast to that pursued by the eastern
railroads, where the chief executives
OF the representative lines testified.
csmpauiss' Earnings eumicisnt.
..Ws will show you that three -fourths
of the traffic In this territory is being
handled by companies that are earn
s..xes and all interest on bonds and
+ debt, from 8 to is per cent on all their
capital stock outstanding in the hands
Of the public.
Heretofore the railroads have been
1arGbetter equipped. than the. shippers
! IN caSss Involving rates; but in the
: ssRSseek Sessa G4he commissions of aix.