Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-03-09
RAILROADS BEGIN FINAL
DEFENSE OF THEIR RATES
Insist Mass of Testimony Will
Not Warrant Lowering
of Tariffs.
EARNINGS STATISTICS CITED
S'nfr Commits sions Want Smaller
charges ON Freight md rnsscn-
ners on Ground Tint They Are
TOO High for Traffic To nrnr.
Try Associated prcss.l

WASHINGTON. March S--Rai,.
roads began their final defense today
or existing levels OF freight and
passenger rates before the Interstate
commerce Commission when attor-
h"SS gave oral arguments which will
conclude the hearings that have con
tinucd Tor several months Henry
"olf Bikle. Of the PcnnSylvania sys
'tm; Fred III. Wood, general counsel
OF the Southern Pacific. and Frank
Iwathmey. for the Southern rail
roads' insisted that neither on legal
or economic grounds had the mass
OF testimony taken disclosed ground
'or the commission to make genera.
reductions OF rates
Give Way 10 Opponrnt.
lhc railroads gave way 10 their
opponents Just before the days EGG
a,,"nf coh:luded. and Fred W. Putnam.
SION. spca king for all state r.ruintiyc
pouicS associated IN the hearings
em.rrra upon the preliminaries OF an
,mnr u,,,sht which Will be continued to-
lhG hrst. he said. for passenger FAR.
reduction on the ground they are too
~ ~ tor me traihc 10 bchr. and that
Quo ed, would DE more quickly re-.
hScted in the actual cos, 10 IN.
ultimate consumer"
Mr. bike used railroad earnings
va tisti's cNhaustivcly placed In the
record To formulate his conclusions
mat II" reduction can he granted.
Railroads are entitled TO n 6 Ter cent
return on the value of property used
m transportation. he coni.nded
whether this figure IS nxc,l in III"
tntnrc by law or set up by the com
MISSION as II standard. and the latest
earnings reports Indicate they are
h"W ma sing but i.ts per cent.
7. t.. ~.
asserting tina, no greater blow coult
hc dealt the credit OF carriers than
I that involved in general rate re.
tuciion. Mr.. Gwathm.y added tina,
no grounds exist for the asSumptio,
inni there can be any Immediate
| stimulation OF business by rate re-.
| auctions"
stat" commissions. shippers ana
| business ana Industrial representa-.
! 'lHcs VIII have the next TWO days 1,
elaborate their arguments In III,
'ast' anu railroad attorneys win con.
! Guide the entire hearing SATURDAY
] with their rchuttal.
interrupts Argunrnt.
Commissioner Lewis !n,.rruut.f
| MI woods argum"n, today 10 ash
! now railroads intended tn proceo,
under the promise of lowe aratc,
| winch they mad. 10 the country h,
| ihc resolution OF their executives /,
| ihsttutinS complaints before IN,
Hallway Labor Board askin; for fur
| thrr general reduction In wages
w" propose 10 bring the rcduc-
'iohs given with estimates Of the
amount Of money they mean To rail-
roads before the commissions" Mr.
wood replied. And with The infnr-
NATION YOU have gathered In this
ionG proceeding we are now engaged
IN you can determine how the rate
decreases should he upportiuned"
We want 10 get that correctly
Mr.. Lewis resumed. lis II the in,en-
non OF the railroads to make all
'hose wage reductions translable IL,
reduced freight rates."
Mr.. wood replied tina, that was ,bo
intention. but. after n monetary con.
ference with Alfred =. Thorn, counsc,
Tor The railway executives. he added
mat "a" roads would ask to bc given
creni, for reductions ALREADY made -
IN applying the amounts which ,hcy
expected To receive.
Commissioner Potter said no nh.
1ccted 10 the railroads hargnininc
IN advance on rate making, bcca,so
w" commission might have some
idca OF IT'S own" and Mr.. Thorn i'm
me"latciy said they Intended to tax.
Il" action without commission an
proNal in advance.