EIGHTEENTH ANNUAL YEAR BOOK — PART VII 347 



It was clearly proven to the satisfaction of the commission that the 

 revenues of the railroads were ample for their needs and for the suc- 

 cessful operation of their business; hence the commission decided that 

 the advances were not justified, and denied the carriers the right to 

 put them into effect, thus saving to the shippers of Iowa six to eight 

 million dollars per annum. 



When this decision was given out, June 29th, we all heaved a sigh 

 of relief, and breathed easier for a short spell. But a short spell cer- 

 tainly expresses the time for inside of ninety days the eastern roads 

 were again scrambling for advances, and in August renewed their appli- 

 cation to the commission for a 15 per cent advance in rates east of 

 Chicago. This situation again brought us into action, as these rates 

 indirectly affect us, and have a direct bearing and influence on our 

 rates west of Chicago. These advances were suspended until Decem- 

 ber, and the case was tried out in November. Mr. Thorne, Judge Cowan 

 and Mr. Cary, three of the ablest rate attorneys we have, conducted the 

 defense for the shippers, and we wish to assure you that everything 

 possible was done to win this case, and that your interests were well 

 represented. 



While this case was being tried put at Washington, the roads oper- 

 ating west of Chicago also became restless for advances, and about 

 November 10th filed a petition with the Interstate Commerce Com- 

 mission, asking for a reopening of the 15 per cent advanced rate case, 

 and an increase of 15 per cent in the rates on all these lines. These 

 increases, if granted, would directly affect every member of this associa- 

 tion and every farmer and stockman in Iowa; therefore, it is very 

 apparent that your organization has a very big job confronting it. The 

 commission has set December 17th as the date for opening the hearing 

 and investigation, and We cannot afford, in my judgment, to take a 

 back seat in the defense and protection of our membership in this very 

 important case, involving many millions of dollars to Iowa shippers, 

 believing, as we do, that these advances are not justified. 



The railroads declare they are facing a crisis; that they can not 

 borrow money for betterments and to buy new equipment; that their 

 stocks have depreciated far below their value, and that they are, in 

 fact, squarely up against it if they do not secure advances in rates. 

 Mr. Patterson, speaking for the eastern lines, declared at the close of 

 the hearings recently held, that if those advances were granted, the 

 roads would soon ask for others. So it seems that there is to be no limit 

 to their efforts to increase their rates. It occurs to me that if this 

 situation really exists, and the railroads must have more money to 

 conduct their business efficiently, the government should lend them 

 this money at a reasonable rate of interest until conditions again be- 

 come normal and they are able to borrow elsewhere. It seems like 

 very bad policy to permit these public carriers to continue to advance 

 their rates in order to buy more equipment, build more terminals, and 

 otherwise increase their holdings, and then capitalize all this increase 

 in value and make the public pay dividends on it. In my judgment, 

 such a policy is not only wrong, but dangerous, and should not be toler- 



