Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-11-24
Hearing on 5 Per Cent In
crease Before Interstate
Commission.
DANIEL WILLARD URGES
JUSTICE OF THE REQUEST
Baltimore & Ohio President Hints at
Government Ownership as Only
Alternative.

Daniel Willard, president of the Balti-
more and Ohio; Frederick a. Deiano,
president of the Wabash, and George
Stuart Patterson, general solicitor of the
Pennsylvania, appeared before the inter
state commerce commission today TO
argue for authority to increase rates on
all classes of freight traffic approximate
" per cent east of the Mississippi and
north of the Ohio and Potomac rivers.
Though the proposed Increased rates
are asked by the railroads in the terri
tory east of the Mississippi and north
of the Ohio and Potomac rivers the
hearing is of the utmost Importance to all
the railroads of the United States, for
should the commission grant the author
ity for the increase, it might extend the
authority to the other railroads of the
country
The commission will inquire whether
present rates yield adequate revenues TO
the common carriers, and much testl-
mony will be taken. When the hearing
began it was expected only the opening
arguments by the representatives of the
railroads would be heard today.
Fifty-Two Roads Appear.
At the opening of the hearing appear
sci OF the fifty-two eastern railroads. Ap-
proximately go representatives of the
railroads. and of shippers organizations
We're present Louis D. Brandeis of Bos-
ton and Frank Lyon of this city appeared
counsel for the commission to develop
facts in opposition to the proposed ad-
vance in rates.
Before proceeding with the hearing
Chairman Clark of the commission paid a
high tribute to the late John ii. Marble.
member of the commission. who died
suddenely last week. Mr.. Clark said that
II the commissioners followed their per
sonal desires the hearing would be post
poned, but demands of the public. he said,
compelled them to forego their feelings
and proceed with the work.
Mr.. Willard, before opening its argu-
ment, also paid tribute to Mr.. Marble,
whose death. he said. no doubt had been
fastened by his indefatigable devotion to
public duty.
\ preliminary statement was made by
Mr. Patterson who asserted that the pro-
posed rate increases presented a great
economic question the outline of which 1t
was especially fitting should be presented
by executive officers of great railroad
systems. He said that though Mr.. Will
lard and Mr.. Delano had been selected to
make the opening statements for the car
riers later they would appear as witness
es for direct and cross examination.
President Willard's Argument.
That the railroads of the country
have felt the burden of the increased
cost of living like all other enterprises
or individuals, but, unlike all others.
have not been permitted so far to raise
their prices or adjust their charges in
recognition of that burden" was the
declaration of Mr.. Willard.
Referring to the refusal of the COM
mission in 1910 to grant 10 per cent
increase and the promise to reinvesti-
gate the rate question in the future
should conditions warrant IT. Mr.. Will
lard asserted that operation of the rail-
roads during the last three years was
not such as to inspire confidence OF
private capital encourage the sup
port of private enterprise.
1t is respectfully submitted" he
continued. that there is at this time
no more important question before the
which will do more to stimulate
healthy commercial activity and pro-
mote industrial growth.
1t is a mistake to think that the
problem Is merely question of divi-
dends to railroad stockholders. al
though that feature, of course, is in
volved- The problem in a broad and
true sense affects all interests. and
the outcome of this particular case
whichever way it is decided-will
mark an epoch. because it will in eff
feet very largely determine. whether we
shall as in the past continue to look
10 private capital and private enter
prise for our transportation require
ments or be compelled finally to ac-
eept the only alternative possible"
Huge Investment Increases.
In presenting the facts upon which the
railroads rely TO prove the necessity for
an increase in rates Mr.. Willard asserted
that during the past three years 1.-The
railroads III the territory affected had
spent in property investment some $780,
100000. or at the rate of 500 oU0. 900 per
year. Nevertheless, he added because
of the fact that operating expenses had
increased faster than operating revenue
these railroads earned in the year ended
June 80, 1913, less by Sl6311 .321 than for
the year ending June 81. 1870.
These companies" continued Mr.. Will
lard, apparently not only failed to earn
any return whatever upon the new cap
ital invested. but they saved even less
from gross earnings. return upon the
original property investment, than theS
were able 10 show before this large ad
ditional expenditure vas made"
In these three years the Pennsylvania
New York Central and Ba- timore anC
Ohio systems increased their property in
vestment over S422.aS7 uio according [,
Mr.. Wizards figures. While their com
bined gross earnings increased SIGJ, 900 0Os
the net operating income Was IS J1:::-yDI
less in 1872 than in 1910 Notwithstanding
the expenditure of S422.G0.0oU for i'm
provements,
Other Burdens on Roads.
Mr.. Willard also called attention I,
increases III wages. taxes, burdens i'm
poSed nv