Hearings

The Interstate Commerce Commission is just at present considering some very grave questions. There is no instant prospect of its deciding these questions, but nevertheless the impending events breed excitement in transportation circles.

For instance there is the question of granting a 5% increase in freight rates to the western railroads. At Chicago, where the Edgewater Beach Hotel rears its creamy buttresses above Lake Michigan, Clyde B. Aitchison, Chairman of the Interstate Commerce Commission, last week opened hearings on this question. Before him came Fred W. Sargent, President of the Chicago and Northwestern, L. E. Wettling, Manager of the Statistical Bureau of the western railways, Charles Donnelly, President of the Northern Pacific, and many another. They came to present the railways' side of the case and were questioned by Mr. Aitchison, by shippers and others opposed to the rate increase. The argument of the railroad men was typified by a comparison made by Mr. Sargent of 1913 and 1924:

Maintenance of way expense increased 96%.

Maintenance of equipment increased 165%.

Transportation expense increased 90%.

Total operating expense increased 107%.

Payroll increased 119%.

Average earnings per year per employe increased 115%.

Rate per hour paid employe increased 139%.

Taxes increased 180%.

Net railway operating income decreased 28%.

Dividend payment and surplus decreased 47%.

Net railway operating income decreased from 5.98 to 3.39%.

Passenger traffic decreased 2%.

On the other hand investment in road and equipment increased from $354,486,370 to $494,529,203, a jump of 40%.

One day there appeared on the platform a large expansive gentleman. He moved about chatting with officials. He smiled blandly. To reporters' questions he replied that he would not commit himself to any of the views expressed by anyone present. He was, in fact, Senator Jim Watson of Indiana, Chairman of the Senate Interstate Commerce Committee.

Another instance was the reopening last week of hearings on the proposed Nickel Plate merger, after a recess of only a month. It had been hoped that a speedy conclusion might be reached, and a compromise made between the Van Sweringens and the minority stockholders of the Chesapeake and Ohio. Instead the minority stockholders promptly renewed their opposition with the new hearing. The most optimistic estimate now made for the final decision for or against the merger is that the Commission will make up its mind by Jan. 1.