Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-25
R. R. RATE RAISE
DEMAND CONTINUES
General Traffic Manager of
Wabash Is on the Stand as
Witness.
MASS OF FIGURES EVEN
PULLING TO EXPERTS
Adjournment for Study of Ia
bIes May Be Taken When
Hearing Closes.

w AOf1lNG1 OANp NOV. Lo.TACpIS-
sentatives of railroads In Central
Freight Association territory were
heard today before the Interstate
Commerce Commission in support of
the application for a general per
cent. increase In freight rates east
of the Mississippi and north of the
Ohio and Potomac rivers.
w. c. Maxwell of st. Louis, general
traffic manager of the Wabash rail-
road, was the first witness, and ]. L.
MINIS, general counsel, questioned
him on tabulated figures relating to
the increases in cost of operation dur
ing the last three years, and the
relatively small increase in net in
come.
Frederic A. Delano, president of the
Wabash, who yesterday co-operated
with President Daniel willard, of
the Baltimore and Ohio, in presenting
the preliminary arguments on behalf
of the railroads, also participated in
the questioning. Mr. Delano and also
Mr.. Willard will later be witnesses
to supplement their arguments with
testimony.
| SAuusuCldn W1tucBbs
| Another witness today was DIR.
Frank Haigh Dixon, professor at
| Dartmouth College and statistician
of the Bureau of Railway Econom-
les. called to explain tables submitted
yesterday relating to the operation
of forty-nine railroads in the terri
tory to be Immediately affected by
ha =
Professor Dixon directed the prepar-
alton of the tables.
It was expected that the prelimi-
nary testimony would be concluded
today and that the commission would
adjourn the hearing for several weeks
to give counsel for the commission
and the shippers opportunity to
study the case presented by the rail-
roads,
Mr.. Maxwell testified particularly
as to the results OF operations and
financial condition of railroads be-
tween Pittsburgh and Buffalo in the
Central Freight Association ter
ritory, his data relating to 3S rail-
roads with 1887 miles of line.
Cost Increased; Income Drops.
All those railroads, he said, while
showing In 1913 a gross increase in
operating revenues of SIS, 1000, 900 more
than for 1910, suffered loss of $12,-
100000 in operating income. This re-
suit" said Mr.. Maxwell, was due to
an increase in the ratio of operating
expenses and taxes as between 1910
and 1913 from " per cent. to 1872 per
cent. This showing was made des-
pite the fact that large sums of new
"a nit al invested fxno
betterments.
Besides the loss in net revenues
for the year ended June 20, 1918, as
compared with 1910, the figures for
these same 3S railroads for the three
months of July, August and Septem
Der, 1918, show decrease in net oper-
ating earnings of $685. 1853 or approx
mately 20 per cent"
Mr.. Maxwell directed special at
tention to the condition of a special
group of roads, which, as claimed
by F. A. Delano yesterday, were more
particularly representative of the
whole situation in central freight as
ISOLATION territory. That group en-
braces % roads with 1857 miles OF
road, of 515 per cent of the entire
mileage in the territory and includ-
ing such lines as the Big Four sys-
tenn, Vandalia, Chicago and Eastern
Illinois, Grand Trunk Western, Grand
Rapids, Illinois Central Chicago and
Alton and Wabash Railroads.
New Capital Earns Nothing.
an 1918 roads in this group" Mr.
Maxwell asserted, learned $50, 900 00(
more than in 1905 which is known as
the panic year and operating expenses
and taxes were $62, 900 more. Net
earnings. after paying expenses an6
taxes, were only $S1, 900 more thar
in 1908. The net corporate income OF
these properties was actually $S,000,-
600 less than in 1908, although durint
this five year period $1S0,000, 900 new
capital was put into these properties
In 1918, according to Mr.. Maxkell's
figures. the roads in this group earned
$36. 100000 more than in 1910, OPERATING
expenses and taxes were 5000 00(
more than in 1910 and the net after
operating expenses and taxes de-
creased s9,500,000 while the corporate
income decreased almost SIT, 900, 900.
Figures Are Reviewed.
DIR. Dixon who directed the prepar-
alton of statistics submitted yesterday
for the railroads, reviewed those fig
ures today in detail. He also stated
that the total operating revenues for
the respondent systems were greater
by $1S1. 900, 900 in 1918 than in 1910, that
operating expenses, taxes and net rev.
enue from outside operations were
greater by about 4.500.000, so that
operating incomes showed a decrease
demonstrating $13,500,000, despite, the
fact that there was an increase of
$500. 900 in property investment.
Railway net return for 1910, he said,
represented 81 per cent. upon capital
while 104 manufacturing concerns in
the United States showed a CORE
sponding return of 11.S per cent, and
the net return for all manufacturing
industries in the country was 1900 pei
I cent
Aggregate compensation to railroad
employees. excluding general officer!
| in the group affected, increased, ac
4 cording to DIR. Dixon from 1864, 900, 00
in 1903 to 1857 900. 900 in 1872 or Sc pc
4 cent. The amount of increase be
4 tween 1910 and 1912 was $4,000, 900, an,
4 the rate of increase II per cent, Will
the annual average for the second hal
j of the decade 1907-1912) was create
& than the annual average for the frs
j half QsO3-1907 by $o5,oOO,ooO. or % pc
Il cent.
AT the present time the averag
q wage of engineers, passenger o
& freight. is 81 800 per year. the averag
Il wage of a fireman $3.50 per year, tn
d average wage of, conductor $l,45
4 and the average wage of trainma
g $1,O16 per year.