The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-03-30
CLIFFORD THORNE
GIVES REASONS
Tells Commerce Commission Why the
Railroads Should Not be Al
lowed to Increase Their
Rates.
MAKE GOOD DIVIDENDS
Roads Have a Way Of Reducing Net
incomes During Prosperous
Times by Simply Adding
improvements.
MAKE GOOD DIVIDENDS
IRr the United Pressl

CHICAGO, March 30.-Clifford
Thorne, railroad commissioners OF
Iowa. and president of the national
association OF railway commissioners,
today opened the evidence on behalr
OF the shippers and the public inter-
ests which he represents at the west
ern rate hearing before Interstate
Commerce Commissioner Daniels.
Thorne opposed the increase in a
formal statement. In part, he said:
During the past four weeks this
commission has heard the testimony
offered by the officials of western
railroads, in favor of an increase in
their transportation charges, aggre-
eating millions of dollars annually
I'VE will now present to you the
evidence on behalf of the producers,
shippers and consumers OF this west
ern part of the nation.
! Our object is not to make gem
eral onslaught upon the credit On
these western railroads. The result
lof our efforts will he rather to help
establish the soundness and strength
of their credit.
"As indicating conditions In the
territory involved, only the testimony
of the presidents Of the Chicago Great
Western railroad, the Missouri Pa
cific railway and the Missouri, Kan
sas and Texas railway was intro
duced. Nothing further need be said
This commission and the public
knows whether they represented typi-
cal lines or weaklings. This proceed
ure is in marked contrast to that
pursued by the eastern railroads.
where the chief executives OF the rep
Iresentatiye lines testified.
I'VE will show you that three
fourths of the traffic in this territory
lis being handled by companies that
are earning above all operating ex-
penses, and all interest on bonds and
debt, from six to sixteen percent on
all Of their capital stock outstanding
in the hands OF the public.
| Heretofore the railroads have been
far better equipped than the ship
pers in cases involving rates; but in
! the present case, the commissions OF
sixteen western states, in compliance
with state laws, have secured the
services Of an eminent corps OF ex.
pert accountants and statisticians.
and are looking after the interests OF
the public.
Joined with the commissions are
the representatives of upwards OF
800 900 manufacturers, merchants,
grain dealers, live stock dealers. and
other producers and consumers. scat.
tered throughout the territory.
! 1--WE 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. 1t is not neces-
sary for US to parade glazing, sensa-
tional incidents of high finance or
questionable acts. 1t is a cold blood
ed business proposition. The famous
Gould printing press scandal. where
they made Erie stock over night, an
incident that will probably be famous
for all time, only involved some $685.
100000. The present movement for
(! increased freight and passenger rates
| involves several times that sum OF
money, not just at one time, but ev-
cry year, now and In the future, for
| this and future generations to pay.
| The impressions has been given
I that railroads have not been able to
maintain their properties during re
cent years; that they have been COM
PEELED to retrench so severely that
the public has been injured, as well
as the railroad properties. This is
true, as to some railroads, but we
will show you 1t is absolutely untrue
as to western railroads as q whole.
AS in all business, there are temper
airy periods Of depression when the
railroads. as whole. including both