Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-10-15
MEN
THINK CASE
IS WON
CONFIDENT OF SECURING
RATE ADVANCE ASKED
Eastern Trunk Line Presidents
Maintain Roads Must Have
More Money TO Continue
March of Progress,

my Morning Journal Special Leased wire1
Washington, oct 14.--President
w. G. Browne Of the New York Cen
tral lines, was on the witness stand
throughout the day In the investga-
tion by the interstate commerce COM
mission into the proposed advance In
freight rates in the eastern trunk line
territory With the conclusion OF
President BroWne'a testimony the
case OF the railroads practically was
completed, although } G. Stewart,
vice president OF the Erie Is 70 bc
heard.
Under the law. It is Incumbent up
on the railroads to make prima
facie case OF reasonahleness OF any
proposed general advance In rates
considered BY the commission.
| Through the testimony OF President
McCrea, of the Pennsylvania Presi-
dent Willard Of the Baltimore and
| Ohio and President Browne of the
! New York Central, coupled With the
exhibits Of statistics and statements
cf operating officials submitted, the
railroad officials express confidence
that thcy have established their case.
President Browne testimony today
frankly set out the industrial and
financial operations OF lines under his
direction. lie was ross-cxamined at
great length particularly az 10 the
financial operations Of roads. and ad-
hercd closely to his view that they
were entitled to a fair return upon
the investments IN the properties---ft
return that would enable them TO meet
the extraordinary expenditures on
! their property.
The presidents Of the three great
railway systems maintain that Il is
not only the ambition OF railway Of
| iicals, hut the desire Of the travelling
and shipping public that the railroads
| of the United states should continue
/ to Oe the best IN the world.
In order to maintain this pres sc.
| II ls the opinion of MIR. Browne That
! the freight income OF roads shuuid
| be greater than II is now In discus-
sing the capitalization Of the New
| York Central. President browne said:
THE New York Central stock, every
dollar of H. has been paid for at sl0n
a share except such as WIS paid 1, \
at a rate OF SIPS to $l5S share, ana
the New York Central cannot DC re-
produced today for 200 per cent of
its total stock and bonds. l say tnat
under oath. "
Louis d. Brandeis, counsel for the
shippers, took up the cross-examin-
alton aud elected the Information
that J. Pierpont Morgan WAS meme
ber OF the executive board of the
New York Central and that the firm
Of j. r. Morgan and company was
among the financial advisers of the
road.
did Mr. Morgan approve OF the IN
crense Of New York Central dividend
from five TO six per cent In lOl0?'' in
quired Mr. Brandeis.
II cannot answer because | do not
know responded the witness.
did not you and your directors
make this increase in dividends with
"A fun knowledge that employees were
about to demand increased wages?"
"'rhe demand for increased wages
was pending gt the time, ! believe
replied President Browne
"ls ii not a fect. said Mr.. Brandeis,
Chat YOU disabled yourself to the eN-
tent of S1.7S6,000 a year from meet
ing the increased liabilities for
wages?"
I'm doing this. replied Mr. Brown.
1--WE increased the dividend less than
the men who held the securities of
the New York Central could have
gotten on first-class mortgages, q
dividend about equal To four per
cent bond. because bonds sell almost
on five per cent basis. The same
reason that caused an Increase In
wages logically and necessarily ap-
stock Of the railroad
Did YOU not conceive" suggested
Mr.. Brandcis that II was your duty
pnd the duty of your fellow directors
IL o. surplus was necessary for the
maintenance OF the credit Of the road,
10 withhold the granting of dividend
at a time when YOU know that a de-
maud for Increase i'm wages TO be-
made. which necessarily would inn
pair a portion OF your net revenue?"
mo. sir" said Mr. Brown.
WAS the question considered
suggested Mr.. Brandcis, in view OF
the effect of that action upon the
credit of the New York central and
upon its ability To- borrow money In
the markets of the world
II do not really know replied MT.
Brown. whether 70 was or not; but
there is no question hut that the In
crease Of the dividend To six per cent
made il possible 70 dispose on satiS-
factory terms of forty -four million
dollars In securities of the company.
MIR. Rrandeis in response to qnes-
tions bv chairman knapp and other
members OF the commission, indl-
Gated his puPose to show that III rail-
roads in the eastern territory were
managed with the highest degree OF
efficiency It would be possible for
them 40 earn digidends and make de-
sired improvements without increas-
ing rates. He said that he would pur
men on the stand who would explain
how this could hc done.
when you find such men, inter-
iected President Brown. Kindly send
me "a list of the first five OF ten OF
them I say this in All seriousness
Tnev are Just the sort 20 people / am
looking for and J want them In New
FORK and ON the railroad as soon as
may get them
Ten Deaths from Cholera.