The Barre daily times. (Barre, Vt.) 1897-1959, 1920-05-24
RAILROADS
PRESENT CASE
Want Increased Rates on
Freight to Insure 6 Per
Cent Returns
NEED ADDITIONAL IN.
COME OF $1,O17,0OO, 600
The Eastern Roads Ask for
30.5 Per Cent Ad-
ditional

Washington, d. c., May 24,-Repre-
sentatives of every interest concerned
in the operation OF the country's rail
way system, as well as the public were
here to-day for the opening of the hear
ing by the interstate commerce com
mission on applications for increased
freight rates. The road owners have
claimed that in order to meet the six
per cent return on their properties,
guaranteed by the recently enacted
transportation act, it will be necessary
to increase the earnings of all the
roads by Sl,0l7 100000. To provide
this sum. the carriers have recommend
ed that rates in the eastern group Of
roads be increased 800 per cent, those
in the south 300, and those in the
western group 239 per cent.
Method of fixing the valuation Of
the railroad properties on which the
government guarantee will be based
will be one Of the questions threshed
out at the proceedings.
Government Ownership Threatened
Events of hhe next few months or
weeks will determine whether govern
ment ownership Of railroads will come
again-despte popular opposition
Frederick Strauss of New York warned
the. commission, eontending that the
main thing at present is To establish
feeling OF security in the minds of in
vestors. Mr. Strauss appeared before
the commission in support Of the rail-
roads request for increased freight
rates.
Governments guaranty would neces-
sarily be followed by government own
ership." Mr.. Strauss declared. But
the peoples aversion 10 government
ownership is of no avail unless such
policies are adopted as will preclude 1t.
whether government ownership will
come against ths will OF the people. or
whether a system of private ownership
shall once again obtain here as it did
in the days when the American trans
portation system was regarded as sec
ond to none in the world, will be de-
termined by the events of the next few
months or weeks
Low nominal rates merely are of no
use TO shippers" Mr. Strauss assert
ed. "f the traffic is not moved IN sufli-
cient quantity What che shipper
needs, he argued. "is the speedy move
ment Of his goods and there are only
two ways in which Il can be accom-
plished
"One is by an increase in the charge
of the shipment of the good" he said
and the other is by an appropriation
out of the national treasury by levy
on tax payers to cover the deficit
Railroads at present can offer no in.
ducement to the investor combining
safe bonds with speculative value. Mr..
Strauss said. Calling attention TO the
meager number Of railroad stork- that
sell above par. Mr. Strauss pointed out
that in order TO have railroad stocks
sell at a substantial premium the earn
iugs of the roads must be large enough
to permit the payment of dividends
which viii compare favorably with al
yidend rates on stocks OF industrial and
ot her concerns.
"The recent remedial legislation Is
good so far as il goes" he concluded.
Tho return Of six per cent per annum
will. 7 believe, turn ont 20 be wholly
inadequate as time may demonstrate.
but a beginning has been made on
sound lines and as time goes on Con
gress will realize that the rate Of re
turns on railroad property will have to
favorably with the returns to
be had in other industries, or else gov.
ernment ownership viii inevitably re
suit