Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-30
Decision Expected in Three
or Four Weeks on Freight
Raise of IS Per Cent.
ROADS WARN AGAINST
WAGE CONTROVERSY
Attorneys, in Rebuttal Arguments,
Point to Complications
Over Pay.
BY the Associated Press.

BY the Associated Press.
The Interstate Commerce Commission
today closed two months and a half Of
hearings on the railroads request for
Is per cent freight rate increase and
took the case under advisement.
A decision is expected In three or
four weeks
The hearings ended with rebuttal ar
guments by attorneys for the railroads
and railroad security sholders.
During the closing arguments Gren-
vile Clark of New York, representing
security holders. told the commission a
refusal to increase rates would partici-
pate a Nationwide controversy on the
question of cutting railroad wages.
Everybody knows" he said, that
denial of this application will accelerate
and force an effort to cut wages of
railroad workers"
Doubts Right to Refuse.
Clyde Brown, chief attorney for the
New York Central, said he felt the
commission had no alternative under
the transportation act but to increase
rates. Congress, he asserted, had made
this mandatory on a showing by the
railroads that their revenues were be-
low a fair return.
Referring to railroad wages, Brown
asked the commission to remember that
in 1922 when it reduced railroad rates
cut in wages Of railroad employees was
effected on the same date.
The railroads fled their petition for
the increase on June II and on July
is hearings were started.
Except for brief recess between
presentation of the railroads case and
10 days for filing CT briefs the commits
sion has been occupied throughout the
Summer with the case.
Large, Complicated Question.
"The wage question is a very large
and complicated one" Clark said in his
closing argument today. Il tried to
figure it out. / have figured as nearly
as possible that it would mean l,400
different possible mediation cases. This
commission should not hurl this con-
troversy on the country"
A week ago, Daniel Willard, president
of the Baltimore & Ohio, in a speech
before the Great Lakes Regional Ad-
visory Board at Akron, Ohio, said he
hoped the railroads would not find it
necessary to reduce the wages of their
workers. He added that wage reduc-
tons had been considered as an alter
native to the proposed freight rate In
crease, but that wage cuts would not
be effective in time to help the roads in
their present emergency.
At the opening of the hearings on the
application for rate increase, an at
Pa, nj frf TIT 1aaf -
was blocked by Commissioner Meyer.
An attorney opposed to the increase
asked H. A. Scanerett, president of the
Chicago Milwaukee g. st. Paul If he
did not think railroad wages we're too
high.
Meyer refused to permit Scandrett to
reply, ruling the case should be con-
sidered on the basis of present wages,
since wages were under the jurisdiction
CT the United States Mediation Board.
Clark and Charles E. Hughes, jr., who
spoke for security holders, closed that
portion Of the railroads case before
the commission.
Denies Bankers Instigation.
Hughes devoted his argument almost
entirely answering r. G. Fulbright, who
had attacked claims that credit of the
carriers had collapsed to such an ex-
tent that refunding was virtually i'm
possible.
Hughes denied bankers had told the
railroads they must ask an increase or
that the financial houses had carried on
any propaganda to the effect the rail-
roads would be unable to secure money
to refund maturing bond issues. The
record, he said, contains denials Of this
claim.
Clark discussed the law and answered
claims of shippers attorneys that the
proposed increase violated established
laws of economics.
Passenger Cut Proposed.
Lower passenger rates were proposed
yesterday as means OF restoring traffic
to the lines.
Arguing against the freight rate in