The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-11

DEFENDING
RATES
Conclusion of Long
Hearing Under Way
Opponents Also Ar
que

Washington, March S.-Rail-
roads began their final defense to-
day of existing levels of freight
and passenger rates before the IN
tcrstate Commerce Commission
when Attorneys gave oral arSu-
mcntS which will conclude the
hearings that have continued COR
several months. Henry Wolf
! Bike. Of Pennsylvania System.
Fred II. Wood, general counsel Of
Southern Pacific. and Frank
| Gwathmey for the Southern rail-
roads insisted that neither on lc-
gal or 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
session concluded, and Fred w.
/; Putnam, OF Minnesota railroad
i commission. speaking for all state
regulative bodies associated in the
hearings. entered upon the prelim-
| inarics OF an argument which Will
be continued tomorrow. State
commissions are asking first. he
said. for passenger fare reduc-
tons on the ground that they are
too high for the traffic to bear. ar !.
that no portion Of railroad charges,
if reduced. would be more quick
! ly reflected in the actual cost 10 the
ultimate consumer"
Mr.. Biklc used railroad earnings
| statistics. cXhauStjvely placed in
the record, to formulate his con-
clusion that no reductions can De
granted Railroads arc entitled to
a per cent. return ON the value
Of property used in transportation.
!; he contendcd. whether this figure
is fixed in the future BY a law or
set up by the commission as a
standard. and the latest earnings
reports Indicate they arc now max
ing but 4.49 per cent.
Mr.. Wood took the same posi-
| ton. asserting that mo greater
F.; blow could be dealt the credit Of
carriers than that involved in a
! general rate reduction. Mr.. Gwath-
: mny added that mo grounds exist
+, for the assumption that there can
be any immediate stimulation of
! business by rate reductions"
State commissions. shippers anG
i, business and industrial representa-
tives will have the next two days
|. to elaborate their arguments in the
case. and railroad attorneys Viii
| conclude the entire hearing Sltur-
day with their rcbuttal.
l. Commissioner Lewis interrupted
! Mr.. Woods argument today to ask
how railroads intended to proceed
/; under the promise Of lower rates
which they made to the country
! by the resolution of their eXecu-
tives in instituliiS complaints be-
fore the Railway Labor. Board ask
! ing for further general reduction
in wages
| We propose to bring the reduc-
tons given with estimates Of the
! amount of money they mean TO
railroads before the commission,
Mr.. Wood replied, "and with the
information you have gathered in
|! this long proceeding we are now
engaged in YOU can determine how
the rate decreases should be APP
portioned."
I'VE want to get that correctly" !"
Mr.. Lewis resumed. Us it the in
tcntion of the railroads TO make
| all those wage reductions translat-
able in reduced freight ratcs?'
Mr.. Wood replied that that was
the intention, but after a confer
encc with Alfred Z. Thorn, counsel
for the railway executives. he add
cd that the roads would ask to be
given credit for reductions al
ready made" III applying the
amoU"ts which they expected to
receive.