Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-03-04
'THORNE READY
FOR RATE FIGHT
Application of Forty.one
Railroads For Increases
Being Heard.
IOWAN REPRESENTS
WESTERN STATES
c. C. Wright, Of Chicago & Northwest
ern Presents Argument in Behalf Of
Roads nterested-Proposed Rates
Would Increase Revenues About
$4,000, 900 AnnualIy-ciaim Expenses
Outstrip incomes.

Chicago, March 4.-Attorneys for
| forty-one western railroads, which are
seeking an increase in certain freight
| rates over $4,000 miles of road, were
| prepared to begin arguments today be-
i terstate commerce commission. The
! increases asked for, according to the
roads, would give the roads about $1o.-
100000 revenue annually.
| c. c. Wright, general solicitor Of the
Chicago & Northwestern Railway,
appeared with bundles Of statistics on
behalf Of all the roads. while Clifford
Thorne. chairman OF the Iowa state
railway commission, was prepared to
oppose the application in the interest
of various state commissions and vari-
Gus shippers. Mr.. Thorne said that
| among the organizations which would
oppose the rate increase would be the
American National Livestock Associa :
ton, the National Council Of Farmers
Cooperative Associations, the National
! Broom Manufacturers Association, the
Corn Belt Meat Packers Association
and several hundred firms.
The railroads will continue their pre-
sentation of the case until March 80,
when the shippers will be heard.
Points to Large Expenditures.
Mr.. Wright, in opening the case for
the forty-one railroads interested, said
that the carriers in the territory in
volved had been called upon during the
last seven years to invest more than
500, ,OO0, 900 a year in additions and bet
terments, but that there had been only
slight increase 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 properties. The ratio OF re-
turn upon investment had been de-
creasing and the operating ratio in
creasing.
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-
quently realized, the commission will
not hesitate to give its sanction TO IN
creases which will 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
single road, as the question did not de-
pend either upon the prost Gritty OF the
strongest road or the needs of the
weakest. but upon the return of the
prosperity of all the roads
5 Grain, grain products, livestock, fresh
meats and packing house products.
coal. hay fruits, vegetables and cot
ton piece goods were named by the
attorney as the principal com modities
upon which the advance was sought.
These, he said, had been treated sep
| arately with a view Of establishing a
! more equitable relation of rates by
advancing those which were too low.
Claims Rates Too Low.
After describing the nature of each
advance and stating that figures dem
onstrating the needs of the carriers
would be submitted, the attorney said
| in part:
"The evidence in relation to the
specific rates on the commodities ad-
vances will, we believe, show that the
advances have been mad0 upon rates
which were both actually and rela-
lively too low.
at will be recalled that in denying
the advances asked by the carriers IN
1910. the commission had before 1t the
returns Of one of the most favorable
years for the carriers, but that the
commission made this statement: III
the time does come. when thru
changed conditions it may be shown
that their fears are realized or ap-
proach realization, and from a survey
of the whole field Of operations, there
| is evidence of movement Whlch
makes against the security and last
! ing value of legitimate investment and
| an adequate return upon the values OF
these properties, this commission viii
not hesitate to give it's sanction to in
creases which will be reasonable
eve believe that it 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 it actually was then,
| and that the fears Of the carriers nave
been more than realized.
"Back of these advances Is the con-
yiction Of the carriers that they need
Increased revenue, but in accomplish
| ing that increase in revenues, the car
riers have exercised their best juds-
| ment as to the commodities on which
| the rates should be advanced, and have
attempted, by the advances proposed,
to establish a fairer relation Of the
rates as between different commodities,
j .-rne records OF the Interstate Com
merce commission show that the car
riers in the territory involved. have
been called upon to invest in their
properties. by way Of additions and
| betterments, more than one hundred
million dollars year during the last
! seven years, and yet their net revenues
are but slightly higher than they were
! during the prior seven years. In other
words, that there is no substantial
turn upon the new investment which
has been made, during the last seven
years..
! 1T will also be demonstrated from
the compilations OF figures which will