Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-03-30
Arguments Presented Against
Increasing Freight Charges
on the Western Lines.
SHOW THE NET REVENUES
OVER TRAFFIC EXPENSES
Alleged Mistakes in Figuring on the
Part of the Petitioning
Companies.

CHICAGO. March 3o.--Clifford Thorne,
chairman of the Iowa railroad commits
| sion. in behalf of the protesting ship
pers in the western railroad freight
| rate hearing. outlined before Interstate
Commerce Commissioner W. NJ. Dan
iels today the opposition of the ship
pers to the freight rate increases pro-
posed by forty-one western railroad
| systems.
The railroads are seeking to have
present rates increased on certain COM
| modities which. they assert, at present
do not yield them a fair profit. The
total increases. if granted. according
| to the railroads, would increase their
revenue s1o.ooo.ooo a year.
| The railroads have been presenting
their side of the case since March 4. Mr.
Thorne's statement at the hearing to-
day was the beginning of the shippers
| case
MI. Thorne's Statement.
| He said:
During the past four weeks this
| commission has heard the testimony
offered by the officials of western rail
| roads in favor of an increase in theiI
| transportation charges aggregatlne
| 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 object is not to ma Ike general
| onslaught upon the credit of these
| western railroads. The result of our
| efforts will be rather to help establish
the soundness and strength of theiI
| credit.
"As 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 and
| Texas railway was introduced. Moth
| ing further need be said. This COM
mission and the public knows whether
| they represented typical lines or weak
| lings.
I'VE will show you that three fourths
, Of the traffic In this territory is being
| handled by companies that are earning
| above all operating expenses. all taxes
| and all interest on bonds and debt
| from to 1S per cent on all their capt.
| tai stock outstanding in the hands OF
| the public
Heretofore the railroads have been
| far better equipped than the shippers
| In cases involving rates: but in the
| present case the commissions of six
| teen western states, IN compliance with
| STATE laws, nave secured the SERVICES Vi
| an eminent corps of expert account
ants and statisticians, and are looking
| after the interests of the public.
Proposes to Show Mistakes.
| I'VE will demonstrate to you some
| mistakes in the figures offered by the
| railroads. We do not call them mis-
representations, for all of us are liable
to err at times. Some OF these errors
are small and of little Importance,
while others are basic and fundamen-
| tai.
| ut is not necessary for US to parade
! glaring ensational incidents of high
| finance or questionable acts. 1t is a
cold blooded business proposition.
| 'It will be shown to you that the de-
| cline in the percentage OF operating in
como on property investment. upon
which the carriers are relying SO
| system Of accounting and not from any
| operating condition.
| 1.-The average net revenues Of these
| railroads, during the past five years.
averaged $400.0O0.000 per year. THIS
| was greater than during any five-year
period prior to 1913 in their whole his
| tory. 1t will be proved that the per-
centage return of net corporate income
| on capital stock outstanding in 1913
was more than double what it was six
| teen years ago. and five times greater
| than it was twenty-five years ago.
| When prosperity is at Its very high
est the railroads can show the lowest
net earnings by simply building larg
| err amount of improvements, thereby
| automatically reducing their net in
come.