The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-10-15
WANT DIVIDENDS
UNDER GUARANTEE
Traffic Manager Goodman Tells
How Railways Would Insure
Their Profits.
RETURNS FROM HEARING
Represented Richmond Shippers
at Interstate Commerce Com
missions Examination.

That the railways are practically
asking the government TO guarantee
their dividends by demanding TO be
allowed to charge the shippers what
ever they please is the terse summing
UP of the Interstate Commerce Com
mission hearing by Traffic Manager f.
g. Goodman, Of the Richmond Chamber
Of Commerce, who returned to this
city from the hearing in Washington
Thursday night
Mr.. Goodman declared to a repre-
sentative Of The Virgtnian who found
him in hts Office Friday morning, that
President Willard. of the Baltimore and
Ohio railway. requested that his road
be allowed to declare dividends aggre-
eating 100000 a year, the money to
be collected from the shipper by in
creasing the freight rates.
In behalf of the Richmond merchants
and shippers Mr.. Goodman went 10
Washington several days ago To he
present at the examination OF the rail-
way officials. Discussing the hearing
and it's probable outcome. he said.
The Interstate Commerce Commits
sion tthe full commission sitting) We'd
nesday resumed its investigation Of
the general advance of rates in official
classification territory, and that day
aud Thursday examined three of the
most important witnesses for the rail-
ways-President McCrea, of the Penn
sylvauia. President Willard, OF the
Baltimore and Ohio, and President
Brown. Of the New York Central the
! examination Of the last named witness
proceeding to-day.
Gave Reasons.
-Thay naturally and ~ rpgasS,fy
were committed to the policies adopted
by their companies. and presented In
what they considered the most favor
able and convincing terms reasons why
/ the Interstate Commerce Commission
should approve the proposed rate ad-
vances.
President Mccrea was crosse exam
ined by counsel for shippers. and I'M
der cross examination admissions were
obtained from him which materially
neutralized the force of his presenta-
ton Of his side of the question. it be-
ing shown that Notwithstanding the
increased cost of doing business his
company, not only laid aside q large
and gratifying surplus, but also dis
tributed u satisfactory dividend among
Its stockholders.
President willard, OF the Baltimore
and Ohio railroad. whose testimony
was delivered In an extremely clear
and confident manner. appeared to base
his reasons for the advance in rates
| upon premises that do not seem To
have heretofore been advanced either
by his road or by those acting in con-
| cert with him.
Their plea has been simply the in
crease In the cost operation, due to the
increased wages. and in part to the In
| creased most OF material and supplies,
and additiona obligations resulting
| from legislation.
MIR. Willard. in effect. stated that. In
his opinion. speaking for the Baltimore
and Ohio. that his company should be
allowed TO make, not only know. but
| at any time. such rates as would In
| sure its ability to pay dividend OF
| s per cent and accumulate an annual
| surplus OF not less than $4,000, 900, but
| preferably $s,000.000, this surplus, in
his opinion, being necessary TO pro-
| vide for proper maintenance OF the
| property. with the view Of It's meeting
the growing necessities required by the
public.
This was such an. extraordinary
| declaration az to elicit an inquiry from
one Of the members OF the commission
az to whether the sanction Of the COM
mission for this rate increase. and
! other rate increases. made necessary
in following out the idea OF Witness
would not virtually amount to q gov
eminent guarantee OF his company
| dividends Hereupon an exchange Of
/ Views between the commission and this
! wintss followed. the result OF which. al
near as II IL posaible to reach, showing
that the witness was not prepared t.
| make such an admission.
THROUGHOUT his examination Presi-
dent Willard showed an admirable
mastery OF the details Of railroad 0per-
alton and finance. His testimony wa
delivered without hesitation. and al
!! though Il was the opinion OF mum.
| Der Of the shippers and their counsel
| that his premisea, the Foundation upor
which he based biz arguments. were
faulty r. proved A Ain!ng az