New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-15
v. c. BROWN HEARD AGAIN
He Completes His Argument for
Higher Freight Rates.
N. Y. CENTRAL FINANCES
President Tells of Relations with
j. P. Morgan & Co.-Railroad
Men Think Case Proved.

Washington, Oct 14-W. c. Brown.
president Of the New York Central lines.
was on the witness stand again to-day IN
the investigation the Interstate Commerce
Commission is conducting into the proposed
advance in freight rates in Eastern Trunk
Line territory. With the close OF his testi-
mony this evening the case of the railroads
has practically been completed. although J.
{. Stewart. vfce-president, in charge Of the
operations of the Erie Railroad, is to be
heard tomorrow
Mr.. Browns testimony to-day frankly set
forth the Industrial and financial opera
tons of the lines under his direction. He
was cross-examined at great length, par
dcularly as to the financial operations of
the roads, and adhered to his view that
they We're entitled to a return on the in
vestments in the properties that would
enable them to meet the extraordinary ex-
penditures to which they had been sub
jected, in addition TO maintenance of their
dividend charges.
The New York Central stock" said Mr..
Brown. in reply to questions. every dollar
Of it. has been paid for at 500 share. ex-
OCpN sum DIS was pdIU TOT the rate OF
s125 to s15S a share, and the New York Cen
trail cannot be reproduced to-day for 200
per cent of it's total stock and bonds
say that under oath"
In reply to Louis D. Brandeis. of counsel
for the shippers, Mr.. Brown said that J.
Pierpont Morgan was a member of the
executive board of the New York Central
and that J. P. Morgan & Co. was among
the financial advisers of the railroad. He
added that certain securities Of the Gen.
tral had been marketed through ]. P Nor
gan & Co. These securities were not in
cluded in the bonded debt Of the company.
Did Mr.. Morgan approve Of the increase
of the New York Central dividend from 5
to per cent in 1902" asked Mr.. Brandeis-
Il cannot answer. because I do not
know" said the witness.
Did not you and your directors make
this increase in dividend with a full
knowledge that the employees were about
to make a demand for an increase in
wages?''
The demand for increased wages was
pending at the time. I believe" replied
Mr. Brown.
rs 1t not a fact" persisted Mr.. Bran
deis, that you disabled yourself 70 the
cALtflI u Sls toO,Vp a year IIOil IIecliLE the
increased liabilities for wages"
I'm doing that" replied Mr. Brown, we
increased the dividend less than the men
who held the securities of the New York
Central Railroad could have got on first
class mortgages, a dividend about equal
to a per cent bond, because bonds sell
almost on per cent basis. The same
reason that caused an increase in wages
logically and necessarily applied TO the
people who held the stock of the New
York Central Railroad"
Mr. Brandeis in response to inquiries by
of the commission, indicated his
purpose to show that if the New York Gen.
trail and other railroads in the Eastern ter
ritory were managed with the highest de-
gee of industrial efficiency. it would be
possible for them to make dividends for
their stockholders and the desired improve
nents in service and equipment without re-
sorting to an increase of rates He said he