The Coconino sun., 1917-07-06


 in the shape of increased carrying charges.
 While other branches of the Feder- al and State governments are busily engaged in trying to increase food production, the carriers are seeking to get an extra pound of flesh. If there ever was time when railroads should use their large surplus, that time is now here. If railroads face a conspiracy among those who sell them supplies, it is fitting that the aid of the Federal Trade Commission and Congress be invoked to secure reason able prices for what the railroads buy. We request that the record filed by the railroads showing inflated prices of supplies be transmitted to the Federal Trade Commission for in- vestigation. There is a large-size Ethiopian in the wood-pile who ought to be smoked out-some community of interest among these supply con- cerns that merits the attention of the Department of Justice.
 We leave to other and abler coun- sel the detailed discussion of the evid- ence as to the financial condition of the carriers and their need, if any, for additional revenue. It has been indis- putably proven that the important carriers have surplus funds aggregat- ing more than billion dollars, which could, if necessary, be used to tide over lean period. It appears from the evidence that, on basis of present rates and the prospective large vol ume of traffic, even with increased expenses, the carriers will not be compelled for 1917, at least, to use any of their surplus assets. Our posi- tion is, that, until the time arrives when railroads are forced to use their surplus, and there is danger of an i'm pairment in it, no additional revenue through a general advance in railroad freight charges should be granted by your commission. Confessedly, some lines are in financial distress-so are many concerns in other industries. Failures of capital to earn satisfact- ory returns are fewer among the car riers than in agriculture or conner cial life. It is not the province of the Commission to fix rates sufficiently high to enable the weakest carrier to prosper; indeed it would be impossible to establish charges high enough for that purpose without inficting an irreparable injury on the commerce of the country. What is fair and reason able for a majority of the carriers, representing the bulk of the mileage, is the standard by which to measure railroad charges. It has been proven that the railroads constituting the great majority of the railroad mile age of this country are in a prosper ous condition and are not facing fin- ancial distress.
 There are many features involved in the request of the carriers for a horizontal increase of 15@o which are exceptionally objectionable, and to a few of them, relating to live stock traffic, we desire to direct the atten- ton of the Commission.
 In l. & s. Docket 409, the Commis- sion condemned proposed advance in live stock rates because of "the incon- gruity between the intrastate rates and the present interstate rates" )35 I. c. G., 688). The same conclusion was reached in the l. & s. Docket 555 (35 I. c. C., 589). With but few ex- captions this disparity exists today. To grant the carriers any increase in interstate rates would accentuate this disparity and multiply the amount of the existing discrimination and pre- ference. At least 50Go of the live stock traffic of the United States moves on intrastate rates which are relatively lower than the interstate rates in the same or similar territory. This is not disputed. While carriers have applied to the various State com missions for a 158o increase, it is by no means certain their request will be granted; on the contrary, it is our be- lief that it will be denied. The in- equalities between interstate rates and state made rates are questions for the coordinate consideration and &C., tion of the Federal and State repulat- ing bodies, and to solution of that problem we pledge our support. Pend ing such determination it would be most unwise to create new and great CT determinations and preferences and thus further penalize interstate traffic.
 It was pointed out in l. & s. Docket 555 that, under the present adjust 1f l,.,o .taaIr rafae ohsrnarc