Arizona republican., 1920-07-07
CLOSE HEARING
 IN RAILROADS
 RATE REQUEST
Carriers Claim Higher Freight Rates Necessary Shippers Argue Against Them - Railway Man Argues Service Comes First
rRepubIican A. p. Leased WireI


 WASHINGTON. July 6-Hearings merce commission today on the rail- roads application for increased freight rates which had been described by shippers and carriers alike as Ithe greatest single proposition in it's effect on the American people ever submitted to the commission.
 Decision by the commission on the application is expected early in August in order that the new rates may be effective when the government guar antee expires September 1. It is gen. orally assumed that the forthcoming wage award of the railroad labor tion without further hearings in ad- justing the new schedules.
 The railroads under the provisions of the transportation act asked rate advances which would yield an added yearly income of S1,017 ,00O, 900 to pro vide the six per cent return permitted by the law. In addition the expense to be created by the expected award of the railroad labor board estimated at between $500, ,000,00 and $1.000, 100000 must be met by further increases, the carriers claim.
 Shippers Oppose Raises Opposition on the part of the ship pers was confined mainly to the rates of increases asked by the carriers. 30 per cent in the east, 31 per cent in the south and A per cent in the west, which, it, was argued were too high. generally conc eded. Many shippers disapproved of a general advance on | the strict percentage basis as advocat- l ed by the carriers and suggested flat increases on certain commodities.
 Closing arguments for the roads to- ] s1err , al r..F 1e.nT frv the Association of Railway Executives ! told the commission that when the l labor boards decision was handed | down the carriers would ask that part | of the further advance rate made nec- essary should be borne by the passen- ! ger traffic. The carriers heretofore had asked that the entire advance be l placed on freight.
 Inadequate service is more costly l than high rates, MT. Thom contended 1 adding that the public desires proper l transportation for the commerce oi the country above all else. The ques- tion of the amount of rate increase 1 is a public one, he declared, and must be determined by the test of what is 1 best for the public interest.
 Declares Service First Essential 1 Clifford Thorne of Chicago, in the 1 final argument on behalf of the ship 1 pers, declared that an adequate trans l portation service was an absolute pre- l requisition to the commercial develop 1 ment of the United States and that nothing should be done which would unnecessarily shock or disrupt existing trade conditions or place an undue ol l unwarranted burden on American in dustry.
 MT. Thorne declared that the tota 1 increase in freight rates would aggre- gate 5512 per cent, if the roads anC l railroads and labor were successful 1T getting all they are seeking and tha' if labor got one-half of it's demands and the carriers all of theirs, the freight advance would be approxi- l mately 41.35 per cent. If shippers computations are correct Mir. Thorns contended. an advance of 1615 per cen
 on freight would take care of the present necessity and reduce the bur.
 den in freight traffic by $3s6,000,o0t
 annually.