The Barre daily times. (Barre, Vt.) 1897-1959, 1915-03-04
ADVANCE OF RATES
GIVEN A HEARING
Case Of Al Railroads Interested Was
Taken Up at Hearing Which
Started in Chicago To-day.

for an increase III freight rates, designed
il is said, to equalize certain rates on
9s, 900 miles of road, and which, If al
lowed will net the roads involved Sl0,'
100000 year, was begun here to-day
before Commissioner w. NJ. Daniels.
C. c. Wright, general solicitor of the
Chicago Northwestern Railway company
appeared as chief of counsel for the rail
roads. Clifford Thorne, chairman of the
Iowa state railway commission, who
opposed the roads in the eastern rate
case, appeared in a similar capacity here
representing Is state railway commits
sions which oppose the advance. The
opposition includes also individual ship
pers. Their side is to be given hearing
on March 30.
Mr.. Wright, in opening the case for
the Al railroads interested, said that the
carriers in the territory involved had
been called upon during the last seven
years to invest more than Sl00,000,000 a
| year in additions and hetterments, but
that there had been only slight in
crease in their revenues. During these
years he asserted the roads had not
earned what the courts have held TO be
fair rate OF return upon their proper
ties. The ratio Of return upon invest
ment had been decreasing and the oper-
ating ratio increasing.
! Mr.. Wright called attention to the
| fact that in 1910 the interstate com
merce commission. in denying advances
at that time, had said that II the then
| fears of the carriers should be subse-
auently realized the commission "will
not hesitate TO give its sanction to in
creases which viii be reasonable" These
fears, Mr.. Wright said, had been more
! than realized.
The case would not be presented, he
explained, as the application Of any sim
gle road, as the question did not depend
either upon the prosperity OF the strong
est road or the needs of the weakest,
"but upon the return OF the prosperity
of all the roads.
Grain, grain producter live stock, fresh
meats and packinghouse products, coal,
hay, fruits, vegetables and cotton piece
goods were aamed by the attorney as
the principal commodities upon which
the advance was sought. These, he said,
had been treated separately, with a
view Of establishing more equitable
relation of rates BY advancing those
which were too low.p
After describing the nature Of each
advance and stating that figures demon
strating the needs OF the carriers would
be submitted, the attorney said in part;
"The evidence in relation to the spe-
cifc rates on the commodities advanced
WILL we believe, show that the advances
have been made upon rates which were
both actually and relatively too low.
"It win be recalled that in denying
the advances asked BY the carriers in
1910, the commission had before it the
returns Of one Of the most favorable
years for the carriers, but that the com
mission made this statement: If the
time does come when, through changed
conditions. il may be shown that their
fears are realized or approach realiza-
tion, and from survey of the whole
field of operations, there is evidence of a
movement which makes against the Sc
curity and lasting value of legitimate
investment and an adequate return upon
the values OF these properties. this com
mission will not hesitate to give its sane
tion TO increases which will be reason
able
"We believe that il will be demon
strated that the carriers position is not
as favorable as was anticipated by the
commission in 1910, and by no means
as favorable as il actually was then,
and that the fears Of the carriers have
been more than realized.
Back Of these advances is the con-
viction OF the carriers that they need
increased revenue, but in accomplishing
that increase in revenues. the carriers
have exercised their best Judgment as
10 the commodities on which the rates
should be advanced. and have attemRted,
bv the advances proposed. 60 establish
fairer relation Of the rates as be-
tween different commodities.
"The comparison of revenues and eX-
penses will be made, covering two peri
ods, one the seven years, 1901 10 1907,
inclusive. and the other the period from
1905 10 1914. inclusive The latter peri
cd commences with the revised. uniform
system Of railroad accounts az prescribed
by the interstate commerce commission.
and covers substantially the period dur.
ing which this commission has had the
power 20 authoritatiyely fix maximum
rates. The results Of tbs operation Of
each year will be- given separately. and
the general comparison vii Indicate a
decreasing ratio Of return upon invest.
ment in road and equipment. not only
as between the two periods compared.
hut a. between comparable years in
the latter period. IL viii show that
the operating ratio is Increasing. and
that there has been a very large addi-
ton e. The properties af the carriers.
This compilation VIII show that the
Mt operating income of she carriers iu-
terested IN thi- proceeding. for the aver
age 1T the iast seven Kears. has nut
esrue8 what thc courts have held tn b.
. fair rate ~ return upon their praTier-
tics. ahen considering tie question ~
confaeation Of property % an amount @
ercned s2sHs0 pr NILE 81 rad 0pef-
sted
aIhe records II the iaterstate eora-
merrt commission slvw tbat tae ear
riers - tbe terrt0y Involved hast isasn
CALLED ursn 81 irFrsf in ther properties.
fv the wav H ea1tiuns an8 1attft-
rnerts. snae tHan fifn feinWa renr
auriue thf les aftfn Ffsrs. end 81 tlrsr
raf retpruas are iHH SLIGHTLY htahfr fhsn
they ufre dnrfnE thf f.-iar affn resrs.
In rfhsr m.ar1s. taat tl s na srf-
afsaa6a8 rafurm ufm thH mew mEFss
mart ati.h hns befr maaa dunr ~
last aFfer fears
at mm aisa ~ aanaH-trHtea fssr tise