New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-15
THE RAILROADS. SIDE
Presentation of Figures in Re-
view of Situation.
THE PRESENT COST HIGH
President Willard of B. & o. Dis
cusses Conditions Before Bos-
ton Chamber of Commerce.

4 plea Tor the rallfOdQS was Hd"e ny
President Daniel Willard Of the Baltimore
& Ohio Railroad system, who is chair
man OF the committee OF presidents before
the Boston Chamber Of Coumerce on
Thursday last President willard dis
cussed the request Of the railroads for an
increase Of ner cent in freight rates and
briefly reviewed the application made by
the railroads in 1910 for an increase.
After pointing out that the rates in 1910
had not I'm the aggregate been maintained
citing the net result to the Baltimore
Ohio as an example, Mr.. Willard said, In
part:
again in the case Of the Baltimore
Ohio the wage increase Of 1910 amounted
to approximately s2,5OO,OOO a year, and
the increases which have been granted
either voluntarily or by virtue Of arbitra-
ton awards-within the last twelve
months have resur- iu adding more
than $4,000 to H. .pcuses each year.
Further. as is well known, the conductors
and trainmen are now engaged in taking
a strike vote for the purpose Of enforcing
their demands for an advance Of approx
n1ately II per cent. and while Il is not
likely that they will obtain all they ask
for. II ia probable that II the matter
should 60 70 arbitration under the pro-
visions Of the Erdman act, as II now
stands, they would receive a substantial
increase.
Prices OF various kinds Of material
have also advanced since 1910. The coal
hill Of the Baltimore & Ohio Railroad
amounts 10 approximately 100000 per
wear. and within the last two years there
has been an advance IN the price Of coal
Of inward Of ] 0 per cent. The increase in
price of ties has also been considerable.
Prices asked and paid for locomotives
freight and passenger cars are also higher
to-day than was the case three years ago
for equipment Of the same kind.
LEGISLATION Of various kinds. both state
and federal, has had an important inilu'
ence upon expenses. The so-called full
crew bill. which has become law IN
many Of the states. requires the railroads
10 employ an extra man on all trains or
more than certain length. regardless or
the local conditions.
"The hours Of service law, boiler in
spection law, laws in various states pre-
scribing standards OF construction for
caboose cars. laws with reference 20 the
construction Of postal cars, revised orders
with reference 70 safety appliances upon
new equipment. as well as upon existing
cguipmcnt: laws with reference 10 grade
separation. etc, all have tended 10 very
greatly increase the cost Of operation. 1t
is not my purpose at this time TO ques-
ton the wisdom Of any Of the laws re-
ferred 10. because regardless Of whether
4 r-r-f he
pense IS there and must be paid.
Taxes have increased largely during
the last three years. In the case of the
Baltimore & Ohio company the increase
I'm that one item since 1909 amounts to
more than $4,000 a year. think II is
perbaps not n matter Of common lnowl-
edge. although one OF public record that
the American railroads, as a whole, pay
each year In taxes more than N200O)c"'
a sum nearly two and oHe-half times as
much as the total amount received by all
the railroads for carrying the mails.
Attention was also called 10 the fact
that the interest basis on all investments
had been raised within recent years. and
that the very best securities must now
paw higher rates than ever before; that
while the railroads were not peculiar IN
this respect. they were in common with
others required TO pay much higher
rate u interest than was the case five or
ten years ago, and that this item was
very important. particularly with the
large systems, upon which millions OF
dollars are being spent. ard should be
spent each year for additions. better
ments and new equipment made neces-
sary by the growing demands Of the con-
stantly expanding commerce.
Mr.. Willard also stated that the pub
lie demands. expects ard receives high
or standard Of service in all directions
than has ever been the case before.
While no one recognizes better than the
railway managers that the service is not
always satisfactory and Is frequently not
such as they would like TO furnish, I be-
uevc." said Mr.. Willard. 1T IS neverthe-
less a fact that upon the whole ii is on
a more satisfactory basis to-day than
ever before, ard that this was accom-
plished only by means of greater expense
in operation"
In summing up conditions. he continued:
The various influences which 1 have
mentioned have all tended TO further re-
QuCe the margin DciMteIl liIblilb oi4N
outgo. and It has become so narrow that
the railroads-many OF them. az least-do
not feel justified in further Increasing
their capital account, regardless Of the
rates at which money may be obtained.
because the burden assumed by so doing
might seriously interfere with their abil
fly 10 maintain reasonable payments upon
their capital issues already existing"
Mr.. Willard cited James J. Hills esu-
mate made i'm 1903, that the railroads
of the country should spend not less than
sl.OO0OOO.OOO a year for betterments and
equipment and quoted figures showing
that the actual expenditures during the
last four years had been only at the rate
Of ssh. 10000 a year or about One-half
of Mr. HilIs estimate. The same reports
also show that the net earnings OF the
railroads FOR the year ending June 30,
1911. after paying operating expenses and
taxes. were actually SS,7S7.OO0 less than
they we're I'm 1907. and before the addi-
tional $2OO0,cOOOOO had been expended. and
the per cent OF return ON cost Of road and
equipment in 1911 was only 4G. as COM
pared with 5.S2 in 1907.
The report OF the federal census was
. quoted 10 show that during the previous
decade capital invested in agriculture had
increased 100 per cent; in manufactures
10j per cent. while capital invested in
railroads during the same period had in
creaaed but 10 per cent, and that one re-