Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1922-03-09
RAILROAD ARGUMENTS AT
RATES HEARING CONCLUDED

Washington, March Railroads be-
gan their final defense today of existing
levels of freight and passenger rates be-
fore the Interstate commerce commits
sion when attorneys gave oral argu-
ments which will conclude the hearings
that have continued for several months.
Henry WolL Bil1le, of the Pennsylvania
system, Fred IT,. Wood, general counsel
of the Southern Pacific, and Frank
Gwathmey for the southern railroads
insisted that neither on legal nor on
economic grounds had the mass of tes-
tsmony taken disclosed ground Tor the
commission to make general reductions
of rates.
The railroads gave way to their oppo-
nents just before the days sessions CON
clrded, and Fred w. Putnam, of the
Minnesota railroad commission, speak
ing for all state reg7Ilative bodies as
sociated in the hearings, entered upon
the preliminaries of an argument which
will be continued tomorrow. State COM
missions are asking first, he said for
passenger fare reductions on the ground
they are too high for the traffic to bear,
and that no portion OF railroad charges,
if reduced, would be more quickly re
fected in the actual cost to the ultimate
consumer"
Mr.. Bike used railroad earnings sta
tistics, exhaustiyely placed in the rec
ord. to formulate his conclusion that no
reductions can be granted. Railroads
are entitled to a six per cent. return on
the value Of property used in transpor-
tation, he contended, whether this fig
ure is fixed in the future by law or set
up by the commission as a standard
and the latest earnings reports indicate
! they now are making but 4.49 per cent
f1,a
serting that no greater blow could be
! dealt the credit Of carriers" than thai
! involved in a general rate reduction
J Mr.. Gwathney added that no grounds
| exist for the assumption that there car
| be any immediate stimulation of bust.
! ness by rate reductions"
State commissions, shippers and bus
! mess and industrial representatives viii
| have the next two days to elaborate
! their arguments in the case, and rail
road attorneys will conclude the entire
hearings Saturday with their rebuttal.
! ! Commissioner Lewis interrupted Mr.
Woods argument today to ask how
railroads intended to proceed under ''th
promise of lower rates which they mad
to the country by the resolution of tlrei
executives in institltting complaint
before the railway labor board askin:
for further general reductions il
wages"
1--WE propose to bring the reduction
given with estimates Of the amount Q
money they mean to railroads befor
the commission" Mr., Wood replied
f'and with the information you hav
gathered In this long proceeding we ar
now engaged in you can determine hoN
the rate decreases should be apportion
ed"
1--WE want to get that correctly" Nj
Lewis resumed. Us It the intention Q
. THE railroads to make all those wage re
auctions translata(ble in reduced freigh
rates?'
Mr.. Wood replied that that was tn
intention, but after mOmentary cor
ference with Alfred P. Thom, couns'
for the railway executives, he adde
: that the railroads would ask to be give
Credit for reductions already made"
applying the amounts which they e1
t pected to receive.
Commissioner Potter said ne objecte
e to the railroads bargaining IN advanc
: on rate making because the comnissio
d might have some ideas of its own" ar
: Mr.. Thorn Immediately said they intenc
ed to take no action without comnissic
| aDnrova1 in adyance