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Show RAILROADS ASK FORJNCREASE - Fifty-two Lines Afk Permission Permis-sion to Raise Freight Rate Five Per Cent. MEET COMMISSION Statistics Presented Show Expenses Ex-penses Increase Faster Than Earnings. Statistics to show that operating expenses ex-penses have Increased faster than gross earnings and that net earnings have returned nothing on new capital Invested In the last three years, were presented by George M Scbriver. vice president of the Baltimore A Ohio railroad, to the Interstate Commerce Commission today. According to an elaborate table forty for-ty nine railroads owning 63,670 miles of roadway, with a total of 116,233 j- miles of track, are concerned In tho p5 application for the rate Increases. The figures, summarized, were sub- mltted to show that gros3 earnings from 1910 to 1013 Increased 1180,000,- i niii while operating expenses and tax- es increased $2Ol,OOO,O0O I Tax payments alone Increased from I "J 1 in In lfilo to ?54,-l90 000 In 11U3, and tho net operating Income actually decreased $14,000,000. In th three years the actual property In- eetment increased by almost 660,- J ,000. It required, according to the railroads' estimates, about $3 50 new property Investment for each dollar dol-lar of increased gross earnings and for each $186 of increased gross earnings, earn-ings, increased expenses and taxe were $2 10, without allowing for new money spent to supplv facilities to earn the Increased gross revenue. Operating Income Dlmlnlshe. In 1910, the companies showed net operating ltjcome equal to 6.28 per cent on their property Investment, but in 101.., that percentage had fallen off to "' 36 per cent The total capital obligations of the forty nine companies, the tables show, are $6, 3S9, 000.000, of which funded debt 1b $3,829,000,000 and the rest capital stock The companies earned last year in groBS $1,424,0(10.000. Their income after payment of interest on funded debt was $206,000,000. Out of that income, the companies declared dividends of 5 10 per cent on the capital capi-tal outstanding, amounting to $130,-000,000, $130,-000,000, which Is $19,000,000 less than the dividends paid out In 1912 and $7,000,000 less than the dividends lu At the opening of the hearing, appearances ap-pearances were entered by officials and counsel of tho fifty-two eastern railroad! Approximately 250 repre-B repre-B ntatlves of the railroads and of Shippers organizations were present. I.i.ui-- l Brandels of Boston and F. Lyon of this city appeared as counsel for the commission, to develop facts H In opposition to the proposed advance in Before proceeding with tho hearing. hear-ing. Chairman Clark of the commission, commis-sion, paid a high tribute to the late John H. Marble, a member of the commission, who died suddenly last week A preliminary statement was made bj George Stuart Patterson, solicitor oi the Pennsylvania railroad, who asserted as-serted that the proposed rate Increa- j ses presented a great economic question, ques-tion, the outline of which, It was espe-clally espe-clally lining should be presented by executive officers of great railroad systems. iH |