Evening star., 1920-05-24

tho Mississippi require large eddi-
tions "to keep pace with the growth
Of population ana industry.
Now there is congestion and dim
Guilty everywhere" said Mr.. Elliott.
Fuel. building materials and raw
materials for manufacture are TIED
up and industry is Threatened and the
sluggish movement of grain and food
Of all kinds makes the fe1ding OF our
people more difficult and more costly;
Mr.. Elliott declared that the rail-
road operators were just as desfrous
wages for their 100000 or more men
as they were to receive the increased
revenues. He said: There Is man
power. brain power, courage. common
sense and vision enough in the coun-
try to succeed il all will pull together.
work long and hard, and eliminate
selfishness. waste and extravagance.
In justification of the railroads po-
sition he said that the price OF Trans
portation had not increased nearly 50
much as the cost OF proaueti1n ,aoet 1no ns-
penses had gone up at least lVo per
cent. while revenues had increased
less than 40 per cent. He referred 10
conditions in European countries,
where, he said. freight rates had
been raised as follows: England,
per cent: France. 14o per cent; Bel
rium, 100 per cent: Italy. 40 to loo
5er cent: Holland. 10 to 14o per cent;
sweden. 200 per cent. and NORWAY
$50 per cent.
Mr. Elliott. "in fixing the rate OF re-
turn at 5H and 6 per cent for a two
wear period, might have been SUM-
cient in the past. but is wholiy inaue
ouate to meet the present sNua,ion,;
The cost of new capital In the Uniteo
states TODAY. as is we'll known. IS III
excess Of per cent. The Bank aL
England discount rate is now per
cent. a rate which only seven t.nsS
in the history Of that old Institution
has ever reached that level
In expressing the desire of the raii.
roads to help the Labor Board ara
the Interstate Commerce Commission
in reaching fair and equitable concla-
sions, Mr. Elliott said that the ON .srs
of the companies "as quasi puhhc
servants realize their respons.bi!;sy
TO do their par. in adjusting rig.'t!y
the two $1,000, 100000 questions aow
before both bodies" They Gestre ,c
obtain promptly An adjustment o,
spirit Of the new law. make he rail-
roads self sustaining and relieve lhe
Treasury Of the United States from
the necessity of constant appropria-
tions.
way Executives Is ready ard anxious
to do its part in reaching without
confusion or delay "a settlement OF
the major question Of furnishing aoe-
auate transportation in keeping with
the magnitude Of the United States.
Questioned n to ~Book Value"
At the conclusion of his argument
Mr.. Elliott was questioned at length
by Clifford Thorne Of Chicago. repre-.
senting a number of western shippers
associations: S. H Cowan. the Texas
Cattle Growers Association; e. J. Cot
terill of Atlanta. representing the
representatives Of shippers organisa-
tions. The questions pertained mainly
to the book value" of the railroads
and the extent Of their outstanding
obligations. Mr.. Elliott declined to
estimate the total amount Of the prop
erty investment accounts Of the road:
but said that other witnesses would
testify on that subject.
The railroads, he said, were not re-
turned to private ownership in the
same condition in which they were
taken under federal control. but was
unable to estimate the amount owed
the roads by the government. Ap-
proxima:ely 2o.000.0 900 or $21.00O.000
is due the Northern Pacific railroad.
however. he said.
Aim at Wage Adjustnent.
r. Dewitt Cuyler. president of the
replied for Mr.. Elliott to a question
asked by Mr.. Cotterill in regard to
the railroads position before the rail- |
road labor board, and said that the
roads were represented before the
board to assist in the wage adjust
ment and not to oppose any meritori-
Gus demands.
Mr. Cowan asked Mr.. Elliott IL the
one billion odd dollars asked by the
roads as added revenue included the
billion dollars wage increases under
consideration by the labor board. Mr..
Elliott replied that the wage increases
were not included in the estimates
for revenues from freight increases.
Chairman Clark of the Interstate
Commerce Commission announced
that the railroads argument would be
heard in the order Of the eastern
group first. followed by the southern
and western territorial divisions. BY
invitation Of the commission, he said.
three state commissioners havl been
invited to sit with the commission
during the hearing because the mat
ter covered Is intrastate as well as in
terstate. The state commissioners
are j. A. Geyer of Iowa. r. c. Dunn
of Florida and w. d. B. Ainey of
Pennsylvania.