Show r r I NEW RAT RATES MEET a 7 RAILROADS RAILROADS' LOSS i r A Advance vance More 7 Than Effaces Income licone Slump I I AMOUNTED TO Interstate Commerce Commission Order Ord Order e er Is la Looked Upon is as s Boon Boon Possible u hie ble Changes T Board May Modify F Some Schedules Schedules' Without Affecting Affecting- J the Raise Where Raise Where Rates Go Up f Tb The order of ot th the Int interstate commerce 2 com mission on application atlon of ot the tb r rail rail- lJ 1 road ready In lu ut official classification Uon territory 1 i jr j for p permission to make an average Increase In In- r r crease ot of 5 b per per cent lent In their freight rates making Increases increases that J f will swell the rr freight t revenues of or the tbt or eastern eastern- carriers ca rl lM about an will b be a It decided boon It Is contended n and will Il serve to o overcome ov overcome r- r s. s the the l at actual Increases II In ln operating ng ex es V II 8 in to tb the lust few tew years An n increase will be the New York urk Times In the class rates between between be- be bel l' l tween Buffalo and Pittsburgh an and be- be t wren n Chit ago and St St. Louis that will r r. r more lOre approach the full rull 5 b pero per o t c cent n asked for fur luaus the Hie Increases al c on vu hl lass las rates rUll s In ID any other r railroad rail rail- tend road territory The Tb Increase In class f rates It is understood will not apply applys s a to Kew tw England t and territory east of ot the tc Hudson Hudsn river forty Million More Revenue k t. t In HUB lIlla tine tilt freight revenues of the thet t eastern rn mil railroads roads the the effort t to obtain an au advance ud In rates were V UJ iJO 1 An n average vern of f 5 o per ver Beal nt im of ot this revenue nu wound would be which Is a little more mor than three times s the amount of revenues that the Interstate interstate In in- commerce commission estimates estl esti- mates will will willbe be produced by the Increased ed rates granted grunted by Its decision But the commission contends that If It the railroads abolish tree free service and make other economies economIes that the commission will suggest there thero will be an additional ad ad- additional l saving of ot about 2 oooo o. o This amount added to the amount derived derived derived de de- rived from trow the actual Increases would swell the revenues by more then than 40 or something like or less than tho the railroads asked asked ask ask- ed td for tor The first evidence submitted by the eastern railroads In their application was an exhibit showing that In Inthe the three e years preceding their operating expenses bad lied Increased d faster taster than th their lt gross ro s earnings and th that t net tiet t earn urn earnings In logs ings had Iud returned tI nothing on the cup cap tel tal invested invested-in t In those thos three y years The Thenet Thenet Dt net t operating Income the railroads contended d and bak backed d up the statement state stutt ment by the figures actually lly decreased ed ei The commission may hove have had bad this amount of loss in mindIn mind tn to granting g rate advances s that according accord accord- according ing to the the commissions commission's estimate will give ive the be railroads UD an an Increase of ot about bout 1 r Showed Decrease fb The application atlon for rate rute Increases Involves involves In v lv s nine forty railroads owning 53 63 1 UTO 0 miles of railway with a total of ot miles of of track From 1910 IIno to 1013 1913 their gross gross gross' earnings Increased lI In hi th the same same sam period C their op operating expenses s and taxes Increased ed l Tb There rE increase In tux tax payments alone from In to 1910 to in n 1913 In a H stat statement made by the railroads In pt presenting s their case it was was saId said after noting that tb the net operating In Income in in- COWl come actually d decreased O that hev even n had tb these companies made madeno no IJO increase In capital expenditure In Inthe iu tb the p period they would still h have V been worse off ott In 1910 by r It was wa asserted lJ by the railroads s that In th the yours years the II actual I property proper y Investment lu that is t the 1 cost of 01 rail r read nl silo mid equipment equipment- Ut- Ut increased by al almost almost most mull The Che tout total capital obligations of or the nine forty companies In official class territory at the tl time n the case was vas presented to the commission was wn-t of ot which was funded debt and tic the remainder capital stock stork In 1913 the tbt- forty nine eastern companies earned 1424 gross Their net earnings aft after r deducting de deducting ducting e expenses pensel and taxes V were r Their Ir Income after pay Went ent of interest on OD the funded In In ti dEbt was Out Oitt of ot ut t this ls Income the tbt companies declared 1 Dividends of ot I 5 10 pt per r cent on the cup cap outstanding tn amounting to n o. o which was wa o II'S yens less than the th dividends paid but lilt In lu Wl 1112 mid and less tl than nn the tbt dividends in 1910 |