New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-14
IMPROVEMENTS COST
CENTRAL S155,OOO,OOO
President Brown Argues tor
Increases in Railroad
Freight Rates.
B. & o. ALSO NEEDS THEM
Heads of Two Great Systems
Heard by Interstate Com
merce Commission-More
CAPITAL Hard to Obtain.

Capital Hard to Obtain.
Washington. oct 13.-The presidents OF
-ro great railroad systems gave their views
OF and reasons for the proposed advance
in freight rates by the roads in Eastern
trunk line territory to-day at the inVesu-
CATION being conducted by the Interstate
Commerce Commission. The witnesses
we're ". c. Brown. Of the New York Cen
tral. and Daniel willard, of the Baltimore
d Ohio Neither placed the responsibility
Tor the proposed increase in rates wholly
on the advances in wages recently lnaue'
although both asserted that the very large
increase in the wage scale had been an I'M
,,or,ant factor in the consideration OF the
rate advance
President Brown reviewed the neGotia-
tons which led TO the increase OF wages on
his roads last spring In the aggregate
!, amounted 10 S7SSl.00o n year. Oh TINS
the New York Central alone viii be re
o,Iir-od 10 nav SS5qO.009 in addition 10
$4,000 a year which VIII become er-
fective on January :. on the lines west OF
Buffalo the increase in wages amount 10
$4,000 600 a year. with an additional Sou
GOO = wear - take effect January l.
The New York Central" Mr. Brown
said. has now in progress Improvements
involving the expenditure of approximately
s155. n6N GOO OF this amount S750OO,Ooo
Vas expended prior TO January !. 1910, ap-
1,roxirnatelv $4,000. 600 is estimated 10 be
expended during the present calendar year.
Leaving approximately SSS,O00.0o0 TO be
rro1.ded and extended in subsequent years
in order to complete these improvements
The capital expenditures Of the Lake
Shore now IN progress are approNlrnalelE
SCI. gao o00. Of which sS0.o0e.ooo was eN-
r,ended prior 10 January l. 1910. and about
So 100000 is 10 be expended during the
calendar year 1910. leaving approximately
$40 coo o00 TO complete the improvements
."rbe Michigan Central has in progress
ex;,enditurez Of approximately s14,2O0,00o,
IF which a7OO 400 was expended prior 10
January l. 1910. and approximately $500
coo is 10 he expended during 1910. leaving
extenditures to complete The Improvements
amounting to about S1.00o.0o0.
The Pittsblrg & Lake Erie has in prog
ress expenditures amounting 10 approx
natelv 81 eea. OF which Sl,5ooooo was eX-
PENDED prior TO January !. 1870 and ap-
uroximateIy &. 4f0.c0o is to be expended in
1910. leaving to complete the improvements
about 8 900 600.
The Big -Four has in progress expendi-
t,jres amounting to approximately S7.3oo,po.
Of which $3.50 600 was expended prior TO
January !. 1910. and approximately S5,5oo.ceo
will be expended during 1910, leaving for
con7pletjon Of the improvements about
$4,000
improvements IN This City.
AS soon as the plans and details can be
agreed on with the authorities Of the city
spuvten Duy1il TO St Johns Park. lying
along the west side Of Manhattan Island,
must he rebuilt. including its elevation or
depression; electricity must be installed and
new terminals constructed. other improve
nents contemplated are:
The elimination OF grade crossings. new
passenger stations and remodelling OF
freight facilities At Utica. The elimination
Of grade crossings and construction of
new passenger station at Syracuse. The
construction Of new passenger station
and necessary re,nodellng Of freight facil-
tiles IN connection with the changed Ioca-
ton Of the passenger station at Buffalo.
The completion Of the four tracking OF
the main line between Albany and New
York including alignment and necessary
station changes
The Stlvvesant cut-ofr. connecting the
y
south OF Albany. in order TO send traffic
around the congested terminals at Albany.
Those and similar expenditures VIII
amount approximately to slco.0o,ooo''
To what extent Mr.. Brown was asked.
IS the ability Of the companies to secure
the capital necessary for the making OF
these Improvements dependent upon secur-
ing the proposed increase in the freight
rates now under Investigation
More Capital Depends or Rate Increases.
A considerable part Of the capital for
the irnprovene 'ts now in progress he re
Piled, vas secured prior to the lime when
the recent Increases in wages rendered the
situation so acute. But. with respect to
the capital remaining to ne secured for
these improvements, I can confidently say
that the ability OF the railroads TO obtain
j. depends upon the ability Of the com
ysnies 10 secure increases in revenue
through increased freight rates commensu-
gate with the recent increas es in expenses.
Il cannot better illustrate the situation
than by reference to the recent attempts
# the Michigan Central Railroad TO market
II this country and in Europe issue of
Sl75eoeg9 Of its per cent debentures. The
low bonded Indebtedness Of the Michigan
central and the previous stability of its
earnings should have made such sn issue
attractive 10 any security market. II has
been impossible. however. either in this
country or in Europe to secure any bid for
these securities which could be considered.
The best bid which the company has
teen able To obtain VAS one recently made
OF = Tor the entire issue. The acceptance
o. this bid would have involved a discount
OF over $4,000 on an issue OF sI7,500,0 go
and. Of course, could not be considered.
The only alternative is TO borrow money
short time notes. and a result Of an
effort 10 DO his shows that il will be neces-
sary TO pay approximately, and, in my
opinion. fully, per cent interest on such
notes ] believe that this general condition
viii continue TO exist until the revenues of
the companies can be increased through an
increase in rates"
Conditions on Baltimore & Ohio.
The statement OF Mr.. Willard was similar
10 that Of Mr.. Brown. lie told of the wage
increases made on the Baltimore d Ohio
and of the necessity for Increased rates
The Increase in our payroll he said.
If IL had gone through the entire year
would have amounted 10 Sl.635Ot, and II
We had had the interest payments for the
entire year that had for the latter
months. because of the increased capital.