Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-11-20
RAILROADS .WIIIIl!jll.. . ASK ST 7.
OTHER RATE INCREASES
Counsel Serves Notice Additional is
L Per Cent Advance Will Be
Necessary Soon.
"sKi LIMIT" ASKS MccHoRD
Shippers Counsel Holds Railroads No
Worse 90 Than Other Businesses.
Advises Use OF Surpluscs-variou,
Interests Attack Proposed Changes.
Lpy Associated Prssn.l

WASHINGTON. November is-Arcu.
mcnts in the Eastern railroads 10
per cent advance rate case before the
Interstate Commerce Commission closed
to-day with a statement OF counsel
for the roads that even II this increase
Is granted they soon will ask for an
other advance OF approximately Is per
cent In class and commodity rates and
10 per cent a ton on coal and coke.
what Is the intention of the rail.
roads?" asked Commissioner MtChorJ,
Ito make the sky the limit"
"As cost increases. rates must 60
basis" answered John S. Patterson,
counsel for the railroads
With both sides agreed that the rail-
roads income had increased. the chief
point Of contention was whether tn.
additional revenue had offset tho in
creased cost OF operation. Mr.. Pat
tcrson said the last advance had failed
by about sl20.OOo,oo0 to cover the in
creased expenses OF tho thirty-cisht
systems.
Counsel for the shippers maintained
that by the use Of the additional rcve-
nues and surplus the railroads would
not be in worse condition than other
businesses, and that under such cir
cumstanccs they should not expect 10
impose additional burdens on tn.
shippers.
CLAIMS ONE BUSINESS
BEARS INDCsTRf's BURDEN
Mr.. Patterson replied that the rail-
roads had desire to make money
out OF the war but that they recognized
industry had a great burden to bear.
and believed that il should b. d.
vided rather than placed In ono branch
OF business.
Clifford Thornc, leading counsel for
the shippers said An increase in freight
rates is essentially tax. aud that It'll,
is no time for an organized SGT OF
! business men TO ask the American
people to increase their burden" hd-
ditional demands OF tho railroads. he
continued. arc almost, keeping pace
with the government in adding bur-
dcns TO the people" Mfr. Thorne con-
tended that tho surplus of the East
ern railroads and their operating rcye-
nueH this year were ample TO maintain
them on a sound basis. pay reason
able dividend and preserve their credit.
Higher rates wcrc attacked BIZ lun-
bcr interests through j. W NORMAN
representing tho Southern Hardwood
Tvaffic Association and l.. e. BOYLE.
representing tho National Lumber
manufacturers Association. 5. III.
Cowan, for th- National Live Stock
Slippcra' Protective Association. also
argued retention of tho present rates.
PROPOSED INCREASES WILL
Hurt RATE RELATIONSHIPS
II the commission believed the ad-
vance essential to tho country al
Mar nleaanrc. Mr. Boylc said, the lurn-
bermcn would accept without hosita-
tivn. but both he and Mr.. Norman con.
tended that the plan proposed for the
increases would diaturb rate relation
ships because 1t affects through rates
and would make necessary rcarrauee-
mcnt3 OF business built largely around
advantages OF freight rates.
The plea Of the roads that their credit
was being impaired by lack of revenue
was attacked by Mr. Norman. who dc
rlarcd that he did not believe credit
entered into the subject railroad Wit
ncsscs had testified. he said. that they
would not borrow IL they could in
competition with the government, and
he expressed the belief that the gov:
eminent should loan money to tho rail.
roads at per cent, providing for its
return as soon after the war as pos
siblc.