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Show RAILROAD MEN ARE BEFORE COMMISSION Washington, D. C. Nov. 24. l)aniel Wllllard, president of the Baltimore & Ohio; Fred Delano, president of the Waba6h. and ;eorRe Stuart Pal terson. general solicitor of the Prnn sylvania. appeared before the In state commerce commission to argui for authority to increase rates on all classes of freight traffic approximately approxi-mately 5 per cent e.vt of the Mississippi Missis-sippi and north of the Ohio and Potomac Po-tomac rivers. The hearinK is of the utmost importance im-portance to all the railroads of the United States for should the commls Blon grant permission for the Increase it might extend the authority to the other railroads. i The commission will Inquire wheth er present rates yield adequate reve l nuea ,n ,h0 romrnon carriers. and! much testimony will be taken Washington. Nov. 24. That thfl railroads of the country have felt the j burden of the increased cost of llv-Ing, llv-Ing, like all other enterprises or In- j d, vidua!-, 'hut unlike all others have not been permitted so far to raise their prices or adjust lliplr charges in recognition of that burden," was the declaration of Ian!l Wlllard, president of the Baltimore ft Ohla Railroad, arguing today before th Interstate commerce commission for authority to Increase freight ratae approximately five pr cent In the tt-rrlton east of the Mississippi and norih of the Ohio and Potomac-river. Potomac-river. Rpferrinc 'n 'he refusal of thfl ott-miselon ott-miselon in 1910 to grant a ten per cfnt increase and the promise to re-Investigate re-Investigate the ratn question in the future should conditions warrant It. Mr Wlllard asserted that operation of the railroads in the last three years and not such as to Inspire con I fldence of private capital or encourage encour-age the support of private enterprise "It is respectfully submitted." he, continued, "that there is at this time pd more Important question before the people, nor one the correct so I hit Ion of which will do more to stim- ulatr healthy commercial activity and promote Industrial growth. "It Is a mistake to think that the problem 1 merely a question of divl ' dends to railroad stockholders, although al-though that feature Is Involved The problem In a broad and true -ense affects all Interests and th outcome ei this particular case whichever wn It is decld.ed will mark an epoch, because It will in effect, very largely determine whether we shall as In the past continue to look to private capital and private enterprise for our transportation requirements, or be compelled finally to accept, the only alternative possible." In presenting the fads upon which the railroads rely to prove the ne cessity for an Increase in rates, Mr Willard asserted that in the past three years the railroads in the territory ter-ritory affected had spent in property ir vestment some 1600,000.000 or at the rate of S200.000.000 each year, i Nevertheless, he added, because of the fact that operating expenses had Increased faster than operating rev-enus. rev-enus. these railroads earned in the I year ending June 80, 1913, less by j J 116,311,321 than for the year ending l June 30 1010 No Returns on Capital. ' These companies, ' continued Mr i Willard. "apparently not only failed to earn any return whatever upon the new capital invested, but saved even leas from gross earnings, as return re-turn upon the original propertv Investment, In-vestment, than they were abel to show before this large additional expenditure ex-penditure whs made." In these three years the Pennsylvania, Pennsyl-vania, New York Central and Balti more and Ohio systems Increased their property Investment more than $422,000,000 for improvements. Increased Expenses. Mr Willard also called attention to increases in wages, taxes, "burdens Imposed by legislative enactments." such as extra crews, liability and compensation sets and other conditions. condi-tions. He called attention to the fact that since 1910 wage payments by the railroads affected had greatly Increased In-creased largely ap a result of mediation media-tion and arbitration proceedings and that the award Juat announced by the arbitrators would give the conductors con-ductors and trainmen $6,000,000 per annum additional The effect of the so-called full crew laws alone, he said, had been to increase the ex penses of these carriers more than (4,000,000 per annum The railroads affected paid $54,-494.171 $54,-494.171 in the shape of taxes for 1913. this being $11,579,187 more , than in 191. he asserted. The three I larger railroad systems paid in taxes I $31,216,000 in 1913, this being $7, $54.- more than for 1910 |
