Show I d RAILROADS OF U. U US U.S. S. S NEED BILLION I TO PAY SIX aix PER GENT CENT r 1 t tR R Rate te Case ase Formally Opened VI 1 With Enormous Deficit j Facing Lines oJ By Br Associated 01 d Pro R. R Washington May 4 The 4 The nations nation's railroads will kill need an additional 1 to bring their Income to th lh tho 6 6 per cent basis provided In the tho transportation transportation transportation trans trans- act Through h the tho Asso Association laUon of or Railway Executives the roads proposed to the Interstate commerce commission today that this sum stun be realized through h in Increased increased in- in creased creased charges leaving the passenger cr rates ra t ratos at at the present level It Tho The advices in freight rates proposed propose were re woo Ea Eastern tern roads ro roads O per cent to ly yield j advance ance in all revenues of or pc per cent Southern roads roads 09 per por cent t to pro provide de 20 per pcr cent larger er revenue Western estern roads roads per pel cent to adt vance all revenues 1 17 per cent anat I Open state fane CUM Pr Presentation of or the fI figures marked the tho formal Cormal opening of or the railroad rate case While detailed statements sub sub- i to the commission today covered cohered only the eastern castern lines estimates of or tho the needed increase of or tho the western and ana southern groups accompanied the in- in r sug suggestions upon which the commission commissIon com corn mission Is 18 to determine an entire new rate structure Neb ctr Income of or all 11 of or the country's country a railroads railroad felt fell from In 1316 1916 to 1000 last year rear the railroads railroads rail rail- roads claim while their Investment h ha has increased ed more than n These figures were given gf to serve c as assi n si basis from Crom which the commission could work nork in developing c a n scale of or rates to meet the tho government guar guar- An estimated valuation of QC was placed on the tHo t lon tion systems oC the country by In Daniel 1 i lard president of or the Baltimore Ohio While there has been heen an increase in tt operating p expenses s. s of of tI l p per r cent tarn pinco me inc roans J nasIs 01 vL re e ic C j-j j nu s for the same period has hus been ins In in creased only onh 67 per cent the tine live statement d declared and the operating oper oper- nUng e c expenses of ot tho lines line now are 99 per gent ent of or the revenues re against Giper Gi Gr- per pcr cent in 1916 brave Renewal of or i d This year car and next the tho eastern lines alone llone C face ce the renewal of nearly In maturing obligations Mr Willard said laid In dl discussing tho the problem I of financing r the roads Toads Some of oC these thesel l loans and bonds have linen cn en bearing an hit Interest r Rt rate as low as 3 per per percent cent cent cent- and Mr tr- tr Willard declared that in taking earl r of ot this amount of or obligations at th tho th-r current rate of interest lIec sl- sl C the most careful study of or the revenue production question In order that tho tiro roads' roads credit be kept unimpaired paired I Further urther the European l markets heretofore he available for American railway railway railway rail- rail way il issues Issuer ue arc now closed to u us he said ald and in ill fact tact are arc absorbing our surplus funds and this applies not only ito to l Europe but to practically the tho whole orld including Japan and the east cast There Is nothing in the existing situation sit sit- Mr Willard believed to justify Justi justi- t fy 1 the expectation that either cither wage wages wages' or or material prices s soon on would be lower On the other hand he said the public expected a constantly hl higher standard of ot service ser To Increase uc l neT r The Tho carriers will undoubtedly en- en en deavor or to Increase their operating cf- cf v Mr Willard added and substantial sub sub- results may bo tio expected In that direction but the increased efficiency effi effi- clency Is largely dependent upon in- in capital eX expenditures and improved im Ira- proved l facilities Cearl Cearly unless increased revenues on a liberal basis are arc measurably assured as assured as- as II these carriers will not be able ahlo to render fender the tran transportation service sar necessary for or the tho growing commerce of oC this thiN country Mr r Willard Villard warned that unless ade- ade qu to transportation 8 service r was I provided pro pro- ro- ro vided serious consequences would he be brought ht on the thc whale public public ing shippers and carriers alike li Ho o argued that the commission should get and use all Information and resolve all rea reasonable doubts In favor Cavor of th the higher hr rates and char charges es shown to lo b byi bb b v yi t for r on that side lies lies' saC safety t |