The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-10-13

stockholders in dividends He said this
was the least amount which could be
! thus Telnvested consistent with con-
sentative railway management.
Without the added income from the
proposed freight rates increase, he said.
hi srOad would have no surplus to eN-
pend for Improvements, and deteTiOTt-
ton would result.
The strongest reason, Mr.. Willard
testified, for the increase in rates as
proposed lay in the fact that the pres
ent uncertainty as TO the value Of rail-
road stocks must be removed II proper
development Of railroad resources and
the resources tributary and dependent
upon the roads is to come. He said
that securities must be placed upon a
solid basis or disaster will follow
Mr.. Willard then impressively de-
I clared that the responsibility for the
credit Of American railroads had been
removed by Law from the shoulders of
the railway managers and placed upon
| the shoulders Of the Interstate Com
msrce Commission. This meant that
he commission must act wisely or else
serious results will follow for the cOun-
try.
When asked by members Of the com
mission why an increase in freight
traffic might not be expected TO follow
the bigger volume OF business in the
country, Mr. Willard said il might
but he added that upon the present
scale the expenses Of the roads would
increase as rapidly as their income, If
not little more so; therefore higher
freight rates were absolutely necessary
10 the continued prosperity Of the
roads.
Commercial conditions" said Mr..
Willard. promise prosperity. There
are only two elements Of uncertainty IN
cal unrest and the other IS the freight
rate question now pending before this
commission.
High Prices Prevail
This is VIGOROUSLY a country Of high
living and high prices" President VIII
lard went on TO say. THE prices Of
wages are higher here than anywhere
else in the world and the prices OF ma
terials are higher, yet the freight rates
are lower than IN any country on
EARTH
Mr.. Willard was asked by members Of
the commission II he did not think It
worth while to give the new order.
/! created by the higher standard Of
wages. a trial before the carriers put
| into effect higher freight rates. This
suggestion vas made, the commission
| pointed out, 10 determine If the rail-
roads could not make ends meet without
( placing additional burden upon the ship
! pers.
Mr. Willard sal da test of the pres
ent conditions had already been made
sufficiently 10 prove that the roads
| their present high standard Of service.
i and provide for further development
without an increase in their income
| The BaltimOrean was then asked if
the country should expect the railroads
! to advance their rates every time they
granted an increase in wages &c their
men.
To this Mr.. willard said that the
whole tendency of freight rates was
upward He could not be certain Of IT.
| bIlt he was much inclined to believe
| that with every increase in the pay
roll of the railroads there should be
an increase in freight charges.
! When asked his views as to he policy
| Of caritaliZing earnings OH a road
| which had been reinvested in the prop
] erty. Mr. Willard said that he was
! opposed to such procedure.
IF we should capitalize our surplus
! from year TO year and make L a LA
J bility upon the company instead Of al
! asset we should soon have condition
/ " hereby il would be impossible to guar
/ antee any fair return upon our stock
! issues replied the Baltimore and OHIO
| executive.
| ~ believe in capitaIizing money in
4 vested in a road which will increase its
| earning AGILITY, but most Of the sur
! plus which We expend or our property
| does not add to the income. but simply
| maintains the road upon its original
| earning basis, at the same time proVid-
| Ing for substantial support for our Sc
| curities already outstanding"
Statement Of Disbursements.
Before concluding his preliminary
| statement, Mr.. Willard submitted q
| statement showing how the Baltimore
and Ohio disbursed each dollar earned
from traffic. This statement is as fol-
lows:
Disbursement
Der 81 earned