Evening star., 1915-06-23
Plea for Increase Made by
Western Railroads Before
the |. c. c.
INTERESTS OF FARMERS
DEFENDED BY A. E. HELM
A. J. Norton Declares Consumer. Not
the Producer, Pays Cost of
Grain Transportation.

Argument before the interstate com
merce commission today in the west
ern advance rate case turned on the
increases on grain and grain products.
A ]. Norton spoke for the Santa Fe
railway and A E. Helm of the Kansas
state railway commission replied Mr.
Norton contended that the level Of
rates on grain in western territory
was below the level of grain rates in
the east Farmers organizations op-
posing the increase. he said. had re-
sources of ss.0o0.00o and had gone
about their fight in a systematic and
thorough manner.
The farmer. however" he said,
doesn't pay any freight on grain. That.
Is paid by the consumer"
Mr.. Helm Replies.
Mr.. Helm replied that the farmer did
pay the freight.
1T is a well known fact" said he,
that every increase IN the cost Of
transportation of agricultural prod
ucts. and grain particularly. is reflect
ed at the very moment in the price the
farmer receives for his product. He
pays the freight"
Mr. Helm argued that the burden of
PROOF that an increase was necessary
was on the carrier. Poor management,
bad securities or financial blunders, he
argued. had nothing to do with in
creasing freight rates. Such an in
crease in grain rates, he contended,
could be Justified only II the carriers
showed that cost OF Transporting grain
had increased.
Arguments Not Completed.
Argument on the financial condition
OF the western roads was not completed
yesterday. but time will be granted to
further discuss this point later in the
week
c. c. Wright, representing many of
the interested roads, yesterday main
tanned that conditions would be fairly
shown by taking forty-one roads in
western territory and using them to
give a composite picture. He said
this picture showed that labor cost,
taxes and cost of maintenance are all
increasing. and that the only way in
which the railroads can meet these in
creases, unless they reduce the number
of trains. is by increasing their rates.
Clifford Thorne. representing state
railroad commissions. declared that
only a selected list Of railroads had
been presented to the commission.
They have taken a half dozen of tho
subsidiary companies of the Southern
Pacific railroad" he said. "snd put them
lOIly y-Ouc ToduS anu iclL tHp
Southern Pacific out. These subsidiaries
are earning deficits. and the Southern
Pacific is ono of tho best properties in
the west"
Mr.. Thorne said the railroads based
their requests on the theory that the
book cost of their properties should be
taken as their real vaSue. on which
they were entitled to earn Z per cent.
This" said Mr.. Thorne. "is but the
entering wedge. Il these roads are en-
titled to &10.00O.000 more in revenues
today they will be entitled to 100000.
900 advance next month in passenger
rates and another advance In freight
rates next year. II these two doc
trines are sound all the railroads of
the country would be entitled to
$500. 1000. 900 increase every year.
Before committing ourselves to
such a program let US see II there is
not something radically wrong in the
premises that have led to such con-
A. J. Edgerton. assistant attorney
general of Minnesota, and Willis E.
Reed. attorney general OF Nebraska.
followed Mr.. Thorne, arguing against
the increases.