The Washington times., 1916-02-09
"BRANDEIS BROKE
]. FAITH, IS CHARGE
Former Associate Tells Senate
e. Committee Lawyer Surpris-
! ed All in Rate Case.
tcontInued from FIrst PaEel

CONTINUED from First Page)
tlCns that had prevailed between him
and, Mr.. Brapdeis ell through the
progress of that case. Asked II Mr..
Thorne' had concluded an argument
extending over three and one-hAlf
days ir the early stages OF that case,
ho said Mr.. Brandeis came to him
With profuse praise of his testimony
and exhibits and said that both should
Be published at once SO that the pub
lie could be informed in the case.
The witness said the same cordial
relations had existed in the 1910 case.
He said that in that proceeding Mr..
Brandeis had concentrated his evil
dcnce not on the question OF whether
the revenue as q whole was adequate.
but whether, II 1t were inadequate,
the adequate amount could be secured.
He told how Mr.. Brandeis then had
presented q scheme by which he said
S300, 000,0 could be saved the rail-
roads each year by the application OF
what lie called scientific management
Neither in his argument nor In his
brief" said Mr.. Thorne, did he make
any point OF the adequacy or reason
ableness Of the existing revenues as
whole, although the commission had de-
cided that the adequacy OF the reve-
nues was to be the first point to be
considered. and that the question Of
raising additional revenues, II needed,
was to be considered later"
while Mr.. Brahdeis had attempted
TO make no application Of his principles
of scientific management" Mr.. Thornn
continued. his statement had chal-
lenged attention and resulted In arous-
ing great interest as to whether the
railroads had been conducted in a,
wasteful manner.
?, Abandoned Any Attention.
I'm 1918 Mr.. BrandeIs abandoned any
attention to the scientific nlanaGement
theory" Mr.. Thorne said. and ad-
Vsnced another way by which additional
revenues could be raised II needed. All
the time he seemed to assume that they
were needed. His other method included
the passenger fares and charRinE more
to the Government for carving mall.
Mr. Brandeis centered his entire interest
on this phase of the case. and do not
remainder any evidence or argument Of
fered by him at any stage to show
what constituted an adequate return"
Mr.. Thorne said that still his rela-
tions with Mr.. Brandeis continued pleas
ant. He described the situation toward
the close of the 1918 hearing. during
which 1870 attorneys. traffic managers
and other representatives of shippers
"Aii i OF these these, R}HStS% Win two exceptions re-
Trained from going into the question OF
whether the revenues as whole were
adequate. said Mr.. Thorne. "one in
cluded II In his brief and his clients
compelled him 10 leave It out. Another
touched upon II in his argument and his
clients compelled him to deslst."
HS I0en, lUOTne SAUL
was such that he feared all the ship
pers would concede the main issue, and
grant that additional revenues should
he raised but argue that the higher
said he could see how large ra lroads
could attempt, In good faith. to certain
shippers. to exclude certain classes from
Wsr wee EtsHss@ ia he e eIamsd sS T"s se1
ting a general advance in rates.
Sought Planket Advance.
He said that in 1870 they tried 70 get
it by advancing class rates. aIS that in
1915 they tried to secure a blanket adj
vance on everything.
Stating that he wished t. safeguard
himself from Possible concessions by
these shippers. Hr. Thorne went tn Mr..
Brandeis with tie request thpt he, Mr..
BrandeiS received him cordially and
quoted Mr.. Braudcis as saving:
Mr.. Thorne. you and have triad tn
master this case as q whole The other
representatives are chiefly interested m
their specific commodities. I have
talked it over with Commissioner aTfrlan
end II Is the desire OF the commission
that yoT chould onen the arguments
and will close on hehalf OF the public
In bewteen will come arguments ~ the
He told how he finally cot Mr.. Bran
dels to consent To his nlan pnd then
said thIt on the day before he WAS tc
appear he received copy Of Mr. Bran
ITO my surprise did not find any
statement that the revenues as a
whole were adequate or any similar
proposition"
INJURIES of Position.
Mfr. Thorne then made inquiries as
to Mr.. Brandeis' position. he said, and
Mr.. Brandeis told him. 1T believe some
of these railroads are not earning
enough money and the situation is
especially bad in the Central Freight
Association A territory"
Mr.. Thorne described how when the
chief counsel for the Central Freight
Association lines appeared he said
that Mr.. Bra ndeis had saved him the
the Central Freight Association ter
ritorY. Mr.. .Thorne read the attorneys =
statement into the record and then
read from. Mr. BrandeiS oral argu-
made concessions to the railroads and
pointed to passages in which Mr..
Rrandeis had said that in some cases
railroad revenues are now too small
to insure the prosperity of the roads
and the territories which they COW
"Of course, was simply dumbfound-
ed by this statement" Mr.. Thorne said.
This was no ordinary case. The roads
had, been fighting for four years to
maintain that very proposition, and
and appeal to convey that impression.
Here at the close Of this extraordinary
case, involving S5O,OOO,OOO q year Wmcn'
~ you adopt the standard OF dollars
and cents, was the most important ever
tried before a human tribunal, the spe-
cial counsel for the commission ap-
pointed to see that all phases in the
case we're developed in his closing NJ
Eument. without any notice or warn
Ing to his colleagues. comedies the very
point at issue" ...
Senator Walsh Inquiries.
Senator walsh inquired whether In
making this concession Mr.. Brandeis
might not simply have implied that the
expenses were too high. Mr.. Walsh ask
ed whether Mr.. Brandeis had con-
ceded the roads deserved the form OF
relief they demanded. Mr. Thorne said
Mr.. Brandeis had not conceded the right
OF the railroads to the relief they ask
ed for. but had omitted entirely to dis
cuss whether their revenues were ade'
Quate. and had spent his time showing
how the revenues could be increased. II
they Weer inadequate.
Senator Walsh and Mr.. Thorne en-
Gagged in a rapid fire debate regarding
gross revenues and net revenues.
"I see no evidence Of an admission
by Mr.. Brandeis that the gross reve
nueS were not large enough" said Sen