The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-07-18
|. c. {. To START
FREIGHT RATE
INQUIRY
Common Carrier of West Will
Ask Increase in Revenues
at Chicago Meeting
Rv RICHARD HATvTON
BIZ RICHARD HATTON.

Financial circles and investors in
rail securities in the District Of
Columbia are evincing interest in a
notice just issued by the Interstate
Commerce Commission covering the
rate structure investigation. An
initial hearing is scheduled to begin
in Chicago on September 1. The
hearing will be held at the Edge
water Beach Hotel before Chairman
Attchison. when the carriers will
present all data called for and such
evidence as they may desire to
offer.
The notice issued by the com.
mission states that if any parties,
other than the carriers, desire to
introduce evidence at the first hear
ing after the carriers presentation,
they should so advise the commits
sion. The public, including ship
pers, the carriers and public au-
thorities. State and Federal, are ex-
pected to be represented and to
submit their views as to the pur-
pose and scope Of the so-called
Hoch-Smith resolution and sUgges-
tons as to procedure to be adopted
by the commission IN conducting
the investigation
Complaint Set Forth.
OSANAOA4Ss SCCh4uS AAACICdSS III
revenues. have been filed by on
behalf of seventy-four common
carriers in the western district
comprising the western group and
the Mountain.Pacific group. These
petitions aver in substance that
since the passage of the transporta-
ton act in 1920, the carriers haye
not earned, and are not now earn
ing, a fair return upon the aggre
gate value of their railway prop
erty held for and used in the serv-
Ice or transportation, notwIthstand.
ing that they have been and are
now opreated under honest, eff.
ficient and economical management
and reasonable expenditure for
matntainance of way, structures
and equipment; that their earnings
have been and are such that it is
impossible for them to maintain the
adequate transportation system con-
tempIated and directed by the
Congress; that because of the con-
fiscatory rate of return under
which they are and have been OPP
Grating, their condition has become
precarious and that they are in
need Of immediate increase in
revenue.
The Interstate Commerce Commits
sion has given consideration to the
petition OF the railroad and to the
views Of the public and, as a re-
suit OF this consideration, it has
decided upon a Joint hearing in
Chicago. Although the petition is
broad in scope, the notice under
which the hearings will be held
specifically directs that, in view of
the depression in agriculture there
In stated to exist, the commission
shall effect with the least possible
delay such lawful changes in the
rate structure Of the country as
viii promote the freedom Of move
ment by common carriers of the
products of agriculture effected by
the depression, including livestock,
at the lowest possible lawful rates
compatible with the maintenance
OF adequate transportation service.
Probing Plan Outlines.
It is stated that the Interstate
Commerce Commission has decided
to deal with the problems of the
western district in the following
order: To determine what products
of agriculture, including livestock,
are effected by depression; To de-
ternine whether any rates, fares or
charges, either in particular classes
and kinds Of commodities or classes
Of traffic. in particular sections
or between particular localities N
the western district, or otherwise,
may lawfully be authorized or re-
quired to be increased, and, If so,
to what extent, in order to effect
such increase in the revenues CT
western carriers as may be found
proper.
According TO the Interstate Com
merce Commission, State commits
sions are cooperating with the Fed
eral commission in the rate struc-
ture investigation. In order to at
ford other parties opportunity TO
study the carriers proposals and
evidence, the present intention of
the Interstate Commerce Commits
sion is that, following the carriers
presentation and such cross exam
fnation may be appropriate at that
time, short adjournment will be
taken. At the adjournment hear
tngs, opportunity will be afforded
Tor further cross-examination Of the
carriers witnesses and for intro
duction of direct evidence.
Considerable value is attached to
the coming investigation in view
OF the data which will be produced
bearing upon basic facts which will
assist in furnishing true compari.
sons Of capitalization and efficiency
between the several roads concerned
with the hearings.