Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-03-09
REDUCTION I'M
Rates FOUGHT
by ATTORNEYS
FOR CARRIERS
Testimony Taken at Wash
lngton Hearing Does Not
Justify |. C. C. in Order
ing a Cut, Is Claim.
ROADS NOT EARNING
THE GUARANTEE RATE
State Commissions, Ship
perS, Business, industrial
Representatives to Pre-
sent Their Version.
(By The Associated Press.,

Washington, Ss.rcf S.--Raii+
roads began their final defense to-
day Of existing levels of freight and
passenger rates before the Inter-
state Commerce commission wh3n
attorneys gave oral arguments
which will conclude the hearings
that have continued for several
months.
Henry Wolfe Bikle, general
counsel of the southern Pacific,
and Frank Gwathmey COR tho
Southern railroad insisted that
neither on legal or economic
taken disclosed ground for rho
commission to make general reduc-
tions of rates.
The railroads gave way to their
opponents just before the days
sessions concluded, and Fred w.
Putnam OF the Minnesota railroad
commission, speaking for all state
regulative bodies. associated in the
hearings, entered upon the prelim-
inaries Of an argument which viii
be continued tomorrow. state
commissions are asking first. no
said, for passenger fare reductions
on the ground they are too high
for the traffic to bear and that
no portion OF railroad charges, il
reduced, would be more quickly
reflected In the actual cost to the
ultimate consumer"
Earnings Statistics.
Mr.. BilSle used railroad earnings
cta "a fct hn,
the record, to formulate his con-
clusion that no reduction can be
granted. Railroads are entitled to
a 6 per cent return on the value of
property used in TRANSFORMATION.
he contended, whether this figure
is fixed in the future by law or set
up by the commission as a stand
ard, and the latest earnings repor.s
indicate they are now making 449
per cent.
Mr.. Wood took the same posi-
ton, asserting that mo greater
blow could be dealt the credit Of
carriers" than that involved in q
general rate reduction. Mr. Gwath-
mey added that "no grounds ev-
ist for the assumption that there
can be any immediate stimulation
of business by rate reductions.
State commissioners. clippers and
business and industrial represents.
tives will have the next two DAYS
to elaborate their arguments iu
the case, and railroad attorneys
will conclude the entire hearings
Saturday with their rebuttal.
Promise of Glover Rates"
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 executives
in instituting complaints before the
railway labor board asking for
general reductions in
1--WE propose to bring the reduc-
tions given with estimates Of the
of money they mean to
railroads before the commission"
MIR. Wood replied, "and with the
you have gathered ir
this long proceeding we are now
engaged in you can determine how
the rate decreases should be ap-
portioned."
1--WE want to get that correctly"
Mr.. Lewis resumed. as il the In.
tention of the railroads to mako
all those wage reductions transIat-
able in reduced freight rates."
Mr.. Wood replied that that was
CONTINUED on Page TwoD