Evening star., 1926-05-19
ARGUMENTS BEGUN
, IN FREIGHT PROBE
Western Rates to Be First for
Debate-HugheS Ready
d to Speak.

Bv the Associated Press.
The Interstate Commerce Com
missions general inquiry into the
Nations freight rate structure, as
directed by Congress. reached another
milestone today in the form Of oral
arguments in that phase relating to
rates in the West. Arguments will
continue probably 10 days, with 20
representatives of the railroads, State
commissions and shippers listed TO
give their views.
Although six different proceedings
had been tied up with the general
investigation, the commission decided
to argue the Western cases first TO
enable it to readjuSt, If possible. the
rates affecting agriculture and hVe
stock, in accordance with a provision
nf the lIoch Smith resolution Speclfl-
cally directing that these charges be
reduced, with the least delay, TO the
lowest possible lawful basis.
r. \. Van Doren. vice president OF
the Chicago and Northwestern, and
Kenneth +. Burgess, general solicitor
of the Chicago, Burlington ana
Quincy, two Of a committee or nine,
We're selected to open the arguments
tor the Western roads on their APP
l,liCation for a general increase OF
per cent in freight rates. which
they claim is needed to bring a fair
retWn on their investments.
Hughes Ready TO SPEAK.
charles f.. hughes, representing re
ceivers of the Chicago, Milwaukee, ana
St Paul, also was ready to speak To-
dav or tomorrow morning. 1t has beeh
indicated that he will center his at
rcntion on the Potter plan, proNldlng
Tor A pooling of all revenues derived
from a. general increase IN rates lor
npportionment among the carriers
earning less than 52t per cent
Live stock shippers probably VIII oe
heard Thursday or Friday, While State
corporation commissioners VIII take
The stand Saturday or early next
week.
The Western roads first had asked
an increase sufficient to net theln
return Of 5a4 per cent. and at the time
{, was estimated "A boost of approx
n,atelv II per cent in rates would pe
necessary. After the Introduction OF
The Potter plan, however, they revised
their request TO call for a SpeclHc
ne,. cent rate raise. This plan was pre-
Jared by Mark w. Potter, former IN
Ierstate commerce commissioner anu
noW a receiver for the ST. Paut.
the reouest for a blanket reduction III
live stock rates III the West. against
which am examiner has Tentatively
recommended in d report TO the cotIi
mission and Il request or the Idilr
commissions of Arkansas, OklahoIild
md Texas for establishment or a sepa-
rate rate group comprising tnese
states most Of aknsas, western
Louisiana and that part OF missouri
Cities Greater Prosperity.
The latter petition contends that
southwestern railroads, as a whole'
have grown more prosperous tnail
hose Of the Northwest because of dif-
ferences in traffic, transportation ana
climatic conditions.
certain interests on the Pacific coast
also are seeking establishment or an
other rate group by separating the
Mountain Pacific group by Hile
aIong the Oregon California Nevada
state line. Creation of this and the
southwestern groups are apposed by
the more northerly interests.
Holders of securities in Northwest
ern roads valued at approximately
5000 .OO0 600, through the law firm OF
Elihu Root, are seeking, in addition
to the general , per cent raise, a sup
Elemental boost in rates Tor tnaC re-
gion, which they describe as the sink
hole" of the Nations rate structure.
Ask Rates of 1918.
The corn belt committee and the
American Farm Bureau Federation
have further broadened the scope of
the inquiry with a request for a scale
Of rates on agriculture and live stock
substantially az low as those In effect
June "a, 1918, just prior to the order
Of the director general of railroads
granting a general 25 per cent In
crease in freight rates.
Since that date the biggest changes
in rates We're effected August &c, 1920,
when an increase of 35 per cent was
ordered I'm the Western district; 25 per
cent in the Mountain Pacific terri
tory. and 40 per cent III the East, to-
cether with 90 per cent in passenger
fares.
The next year the commission eff
fected several reductions in rates on
certain farm products and live stock,
aud on July /. 1922. a general 10 per
cent reduction was ordered.
At the invitation of the commission
he National Association of Railway
and Utilities Commissioners appointed
H. committee of nine State corporation
and railroad commissioners to coop
Mill, lo rot1ayT1i m Cnl,.