The sun., 1917-06-10
FINAL ARGUMENTS
IN RATE CASE HEARD
Shippers Counsel Urge Delay
in Granting Appeal Of
Railroads.
SEE PROSPERITY AHEAD
Eastern Carriers Attorney
Says National Defence Re-
quires Prompt Relief.

ways and shippers submitted their hnal
arguments to-day on the proposed Is
per cent. advance in freight rates before
the Interstate Commerce Commission.
The carriers OF other sections and other
interested parties will be heard Monday
and Tuesday.
The Eastern carriers attorneys told
an emergency had been presented during
tho hearings. due to increased costs of
fuel, supplies and equipment. as we'll as
to advanced costs OF labor under the
Adsmson law. The shippers represen-
tativee declared that prophecies Of the
railways had proved fallacious in the
past and urged the commission not to
grant an increase in rates until a thor
| ough investigation of the bases OF the
| carriers expense forecasts for 1917 had
been made.
THE railroads and munitions manu-
| facturers are bound to prosper" said
Clifford Thorne of counsel for the Ma
| tional Shippers Conference. The rail-
| roads have shown here heavy estimates
| OF higher expenses, but have shown none
| OF the increase in revenue which may be
| expected.
six years ago three prominent rail-
| way presidents predicted the doom of the
| carriers before this commission. Three
years later these same roads were able
to sell s5oo.ooo.ooo worth Of securities
In 1914 the carriers again predicted dis
aster, but their interest rates have gone
down. showing the stability of their Sc
| curities. Which merely goes to show
that even a railroad president can make
a mistake in prophecy"
! Luther NJ. Walter Of counsel for the
National Shippers Conference contended
that the commission should await the
report Of the Goethals board on tho op-
Grafton OF the Adamson law before
granting an increase on the carriers
plea Of increased labor costs
| I'VE believe the solution of the ex-
tortionately high prices OF fuel. sup
plies and material for the railroads lies
| with Congress" Mr.. Walter said. 'It
is within the power Of Congress to fix
minimum prices on these commodities.
Let the Legislators determine reasonable
prices on which these should be sold to
the railroads. and then the chief basis
for the plea Of the carriers will be re-
moved. II the commission grants this
Increase the public will continue to pay
rates. for what the carriers should be
buying at far lower costs.
| THE railroads have great amounts
OF cash and other quick assets on hand.
gained through the earnings OF their
peak revenue year-ls16. This Is their
emergency surplus. II they fear a bad
year In 1917 let them use the immense
sum they now have on hand for just
| such an emergency.
George Stuart Patterson. counsel for
the eastern carriers. making the prin-
| hAir hah lot
phasis on tho statement that the hnan-
cial necessities OF the carriers were in
separately interviewer with the necessi.
ties Of the nation. zone OF the mos,
important lessons of the war; he said
"is the absolute necessity Of railway pre-
paredness as an incident to military pre-
paredness. That is the lesson Of France
Of England, Of Russia and OF Germany
Our first duty Is to supply to our Alliet
food and munitions These must bs
moved with the utmost expedition to the
seaboard.
Then will come the construction Of
mobilization camps. the installation Of
siding and terminal facilities at thos,
camps and the movement OF material tt
and from plants doing Government work
This traffic must be all moved with tn
utmost expedition. which will doubtless
mean increased empty car mileage
diminished train loads and addtions
shifting and yard movement.
But irrespective Of this. there is on
thing absolutely certain and that Il
that track and equipment must be KEEP
to the highest state OF efficiency and re
pairs made promptly without waiting
for lower labor and materials costs. ant
therefore the carriers must have tn
/. revenues necessary for such costs. II
that sense the rate increase bears
definite and immediate relation to tn
successful prosecution Of the war"
Mr.. Patterson said that while tn
year 1916 had recorded the largest earn
ings in the history OF the eastern road
, the net operating income on the propert
: investments showed no more than &c
per cent. and that the average dividend
, for the year were only 4S3 per cent. o
the lowest paid In twelve years. 1t wa
plainly evident, Mr. Patterson concluded
that without an increase in rate. tn
carriers would find 1t impossible to oper
/ ate properly and maintain their prop
!, critics and he reiterated the statemen
OF Samuel Rea. president OF tho Pennsyl
vania railroad, that the railroad situa
/. tion presented a menace to the countr,