Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-05-18
WESTERN RATE CASE TO BE PRE-.
SCENTED TO COMMISSION
NEXT MONTH.
THoRNE WELL SATISFIED
WITH SHOWING MADE
Iowa Commissioners Who Represented
Shippers Of Western States Confident
Case of People Is Strons-Most Com
pIete Showing Ever Made as to
Financial Conditions.
,ecial TO Times Republican.

! Special TO Times Republican.
! Des MONIES. May 1S.-Chairman
I Clifford Thorne on his return home
yesterday morning from the big rate
hearing in Chicago where he has been
continuously engaged for ten weeks in
the matter of presenting 10 the inter-
state commerce commission the es-
sentials as to western freight rates
and the financial condition of the rail-
roads, expressed himself very well
satisfied with the progress OF the case
The briefs are TO be printed and hled
by June 0, for both sides, and on June
% in Washington the oral arguments
will be heard by the commission.
Many phases of the case were pre-
scented more thoroughly than in the
eastern rate case which was handled
last year. In the first place MI.
Wright general counsel for the rail-
roads, conceded that the railroads IN
the western territory are able 70 main
tain their systems on the present IN
come. That is a concession not before
made II is contrary TO the PAID al
vertisements of the railroads in Iowa
and elsewhere. The concession took
out of the case the necessity for some
parts of the defense against the pro-
posed advance in freight rates.
Showing Complete.
The showing made by the commits
sions and on behalf Of the shippers as
to the financial condition OF the rail-
roads and their credit and borrowing
ability was the completest thing ever
ATTEMPTED in that line. Financial
America, one Of the leading financial
MAGAZINES of the world, devoted sew
eral columns TO digest and reprint OF
MANY of the facts shown and indi-
Gated that il was a very valuable con-
tribution to the literature OF the SUP
iect. The aim was to present 10 the
commission the actual facts regarding
the financial condition OF the railroads
that the commission may act intell!-
gently. To do this involved an in
curry into the financial transactions OF
these railroads covering a series OF
years. That which has been avail
able in the past in regard to railroad
finances has been merely the prices
nuoted in the stock exchange trans
actions. The railroads have always
complained that these fguses do not
really represent the credit OF the ran
roads. So different track was taken.
II was proposed TO really get at what
the railroad companies receive Tor their
hond issues, not what the investing
pnblic has to pay for the securities.
Delve Into Bond Issues.
It had been stoutly claimed that no.
hodv wou,d be able 10 get the informa-
ton that would disclose exactly what
the railroad companies get Tor 1heir
bonds issued. as that is always mat
ter of private negotiation between
them and the bankers or brokers, ana
;s not made public as "a rule. 1t was
also desirable to obtain similar in
side Information as to the bond is
snas of great commercial corporations
for comparison. Now what the rep
resentatiyes OF the shippers actually
did in this case was to beard the lion
:, b;s den" They went right TO New
York City They went into the banks
and eounseIed with the big brokers
and fnanciers They went into the
Morgan banking house and they IN
teryiewed Judge Gary, of the steel cor
noration. They asked for definite in
formation as to what these recent
fond issues We're sold for and how
much the companies issuing got out OF
them. Morgan said that as FAR as ne
was concerned they could have the in
| formation as to the steel company, and
| the head of the steel corporation gave
the information Then 1t was found
that in New York before these bond is
| sues are made there must be a record
made with the public service commits
| sion, and that commission put a man
a, work and kept him on the Job two
weeks getting the information for Mr..
Thorne and his associates. Then they
went to Massachusetts and repeated
the process of getting official inside in
formation, and elsewhere to do the
same.
| The information was secured and