Indianapolis Times, Volume 43, Number 58, Indianapolis, Marion County, 17 July 1931 — Page 15

JULY 17,1931

RAILROADS ASX FREE HAND IN RATE BOOSTING Chiefs Tell Commissioners Lines Are Entitled to Increases. BY H. O. THOMPSON United Prei* Staff Correspondent WASHINGTON, July 17.—Railway executives, in two days of testimony before the Interstate Commerce Commission regarding their proposal for higher freight rates, have madejt clear that they desire a free hand to institute increases wherever they bellve it can be done without loss of traffic. The hearings were resumed today with two railroad presidents, representing carriers of the east and west, on record as favoring a general 15 per cent increase in rates without excepting even those commodities on which the railroads have found it necessary to reduce tariffs in order to meet truck, pipeline or steamer competition. H. A. Scandrett, president of the Chicago, Milwaukee, St. Paul & Pacific, was more positive about It than J. J. Pelley, president of the New York, New Haven & Hartford. “We think we are entitled to a 15 per cent increase,” Scandrett said. “Whether it will be wise to take the increase and suffer lessened volume of traffic will be a matter of managerial responsibility. Certain adjustments no doubt will have to be made.” But neither Scandrett nor Pelley Would promise any particular adjustments, except Pelley’s statement that rates on raw milk and cream Tuould not be Increased. Wilbur La Reo Jr., representing North Carolina interests, asked if the railroads weren’t usurping in-

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terstate commerce commission functions by asking to be permitted to exercise their own Jurisdiction as to what commodities should bear the transportation burden. Scandrett said he thought such procedure was within the rights of the roads in the present emergency. La Roe’s assertion that the railroads* surplus had doubled since 1920 and that the roads could pay 5 per cent dividends even if they didn't make a penny of profit in the next seven years drew cries of protest from the crowded room. Commissioner Balthasar H. Meyer, who is presiding, is uncertain whether the commission had a legal right to grant a general increase only on a showing that the roads need the money. “Must we not also conclude whether the traffic can bear the increases?” he said. It is said that only one out of every four Americans ever visit a dentist.

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THE INDIANAPOLIS TIMES

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