Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-03-09
Rail Rate
Hearings
Near End

Washington. Mar. S-Railroads
began their final defense Of existing
levels of freight and passenger rates
before the Interstate Commerce
Commission when attorneys today
gave oral arguments which will con-
clude the hearings that have con-
tinued for several months. Henry
Wolf Bike of the PENNSYLVANIA sys-
tenn. Fred H. Wood, general counsel
of the Southern Pacific and Fra,k
Gwathmey for the Southern Rail-
roads insisted that neither on legal
nor on economic grounds had the
mass of testimony taken disclosed
ground for the commission to make
general reductions of rates.
The railroads gave way to their
opponents just before the days ses-
sions concluded, and Fred w. Put
nam of the Minnesota railroad COM
mission. speaking for all state regu-
lative bodies associated in the hear
ings. entered upon prcliminaries of
an argument which will be continued
tomorrow. State commissions are
asking first. lie said, for passenger
fare reductions on the ground they
are too high for the traffic to besr
and that no portion of railroad
charges, If reduced, would be more
quickly reflected in the actual cost to
the ultimate consumer"
Mr.. Bike used railroad earnings
statistics. exclusively placed in the
record. to formulate his conclusion
that no reductions can he granted.
Railroads are entitled to a six per
cent. return on the value of property
used in transportation. he contend
ed. whether this figure is fixed in the
future by law or set up by the COM
mission as a standard. and the lat
est earnings reports indicate they are
now making but 4.49 per cent.
Mr.. Wood took the same position.
asserting that mo greater blow could
be dealt the credit of carriers" than
that involved in a general rate re-
duction. Mr.. Gwathmey added that
mo grounds exist for the assumption
that there can be any immediate
of business by rate re-
ductions."
State commissions. shippers and
business and industrial representa-
tives will have the next two days to
elaborate their arguments in the
case. and railroad attorneys will con-
clude the entire hearings Saturday
with their rebuttal.
Commissioner Lewis interrupted
Mr.. Woods argume mt today to ask
how railroads intended to proceed
under 1.-The promise of lower rates
which they made to the country by
the resolution of their executives in
the complaints before the
railway labor board asking for fur
Their general reductions in wages.
1--WE propose to bring the rednc-
lions given with estimates of the
amount of money they mean to rail-
rcaGs before the commission" Mr..
Wood replied. land with the infor-
NATION you nave SdlHeiSu III 'iiif
long proceeding we are now engaged
in YOU can determine how the rate
decreases should be apportioned.:
1--WE want to get that correctly.
Mr.. Lewis resumed. "Is it the lnten-
ton of the railroads to make all
these wage reductions translatable In
reduced freight rates."
Mr.. Wood replied that that was
the intention. but after momentary
conference with Alfred F. Thcm'
counsel for the railroad executives.
he added that the railroads would
ask to be given 'credit for reduc-
lions already made" in applying the
amounts which they expected TO re-
ceive.
Commissions Potter said ne op-
;sctcd 70 the railroads bargaining IN
advance on ,ste making because the
might have some IDEAS
~ A., own" and Mr.. Thorn imme-
stately said they INTENDED 70 take no
/, lion without commission approval