Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-06
RATE RAISE URGED
AS TRADE STIMULUS
Dr.. Friday Presented by
Roads in RebuttaI as |. c. C.
Ends Chicago Hearing.
By the Associated Press.

By the Associated Press.
CHICAGO, September 5.-As the In
terstate Commerce Commission con-
cluded hearings on the proposed Is
per cent freight rate increase yesterday.
DR.. David Friday, Washington econom-
list. predicted the rate boost would slim
ulate the return Of prosperity which he
said was already indicated by upturns.
In the textile industry and other con-
sumption goods fields.
Dr. Friday was the last witness and
chief economist presented by the rail-
roads in rebuttal to the mass of EVIL
dence submitted by agriculture and
other industries tending to show that
industry was hard hit by business de-
preston and could not stand the boost,
and that its answer to the increase
and waterways.
Will Return to Capital.
With the whole economic picture OF
the Nation before 1t, contained in the
testimony presented during the week
here and in other hearings, the COM
mission announced 1t would transfer
the field of final action to Washington,
setting September 10 as the deadline
for briefs and September FL for verbal
arguments.
DR.. Friday said in previous depres-
sions, an increase in the price OF rail-
road securities always preceded return
of normally. He said the rate increase
would restore confidence of investors in
the railroads. insure flow Of capital
for improvements and raise the car
riers' bond market.
Questioned by Commissioner E. ].
Lewis Dr. Friday admitted that pre-
vious depressions have been due to ma
tional causes whereas the present one
was prolonged by political disturbances
abroad.
LAS an economist, would you say
that the business depression has
reached the bottom?" Lewis asked.
Yes. and We can look toward re-
vival." DR.. Friday said.
When will that revival Gomez" con-
tinued Lewis.
1T should come any moment now"
was the reply.
On cross-examination the railroad
economist admitted that agriculture
would bear the brunt Of the extra rate
burden.
Credit Gin jeopardy"
The petition for the increase was
made on the ground that many car
riers were not earning enough to come
within the scope Of laws governing in
vestments and that their credit was
jeopardized.
Agricultural interests. led by former
Gov Reed. held that the farmers
credit was in worse condition than that
Of railroads.
Answering critics Of railroads who
have testified that the carriers have
not effected economies. E. A. Fox. Chi
cago. chairman of the Central Pas
senger Association, said that a reduc-
ton OF 22,448 900 passenger miles had
been made up to June, 1881. from 1929
between New York and Chicago and
New York and st. Louis and that
total cut Of 26,443,000 will have been
made by this Fall.
Opposition to the boost came also
from the coal and non-ferrous metal
miners, fruit growers and shippers,
lumbermen. Western State public serv-
ice commissions. the butter and egg
industry and individual manufacturers
o. G. Mayer. Chicago meat packer.
recommended today that any increase
in freight car rates granted the rail-
roads should be spread as lightly as
possible over the entire country. and
that 1t should not be made part Of the
present rate Structure.
For Broadly Spread Raise.
Testifying for Northwest interests
which have voiced opposition to the
proposed Is per cent increase, Mayer
said that while a boost would be I'M
timely, but was not opposed to it If it
were spread as broadly and thinly as
possible" over the Nation. He said
that the full increase for which the
railroads petitioned would seriously
affect the packing industry.
Granville Clark, member Of the firm
OF Elihu Root, and representative of
insurance and banking interests, asked
Mayer on crosS-examination whether
the people, who had enough surplus
capital to spend an additional $780,
100000 a year for cigarettes under re-
cent price boost. would be seriously
affected by the Is per cent increase in
their freight BILL which he said would
amount to l cent a day per capita,
Mayer replied that where the use of
cigarettes was optional with the people.
shippers of freight could not discontinue
the use OF transportation. He also said
that production of cigarettes declined
since the price was increased.
F. w. Ellis, vice president of Armour
q Co, who said he also spoke for Swift
q Co. Wilson & Co., and the Cudahy
Packing Co. said the meat-packine in
dustry was not opposed to the proposed
Is per cent increase in all freight rates