The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-11-25

in this he was supported by President
Delano who argued for h railroads
In the central territory and urged that
In fixing rates the commission should
regard no particular territory. Figures
for the first two months Of the present
year M. Delano said were less en-
~couraging even than the results since
1911 when an appeal for 10 per cent
increase in rates was denied.
Figures submitted by Vice Presi-
dent Shriver Of the Baltimore & Ohio
Tor forty-nine railroads in the terri
tory involved showed that the net OPP
Grating income for 1918 had actually
decreased more than $14, 900, 900 while
operating expenses n taxes a in
creased 1901, 600, 900 since 1910. Anoth-.
er table combining the interests of
an increase in operating revenues Of
l4.3 per cent, an increase of 1913 per-
cent IN operating expenses, an in
crease of 1858 per cent In taxes. and
a decrease Of 1913 per cent in net OPP.
Grating income, with an increase OF
l7.56 per cent in the property invest
ment account.
Even If the total freight revenues
of the Pennsylvania system in 1913
a been greater by S per cent, the
return from operations upon the prop
erty investment would have been 6.42
per cent-or only about ! per cent
realized"
W. c.. Wishart, Of the New York
Central, said that system, since June
80, 1910, had added $159, 600, 600 to the
property which it devotes to public
use.
1.-THE whole SYSTEM" he added,
had in the year just closed 1924, 730
less net corporate income than 1910.
The dividends declared in 1913 were
over $4,0O0,000 less than in 1910, not
w~ithstanding the increase of $4,000
600 in the gross operating revenues.
In other words, since June 80, 1910,
there has been added to the property
investment about 81, 900, 900, a week,
while the net corporate income in
1913 was less by about $4,000 a week
than in 1910, indicating that expan-
sion Of business has caused a net loss
TO h stockholders.
The year 1913 shows a large increase
IN operating revenues, 1876 per cent
over 1910, but operating expenses in
creased $3.50 per cent and taxes 1928
per cent, leaving the operating in
come only All per cent greater than
1t was in 1910. This latter increase
the New York Central, Pennsylvania,
b. & o. system showed that the net
operating income had decreased 49,
3O3,S10 since 1910. 1t was also shown
that in this period the property in
vestment for these three roads had
increased 51.60 per cent; gross earn
ings 63.35 per cent. while the net OPP
Grating income had increased only
1880 per cent.
Mr.. Bunting Of the Pennsylvania,
system testified that the return on
property Investment of thai system
had shown a declining tendency since
1908, and a steady decline since 1910.
Between the years 1910 and 1913"
he said. there was an increase Of
$207,18S,919 IN the PROPERTY investment
income Of $11,485,511. In other words.
the Pennsylvania system was Sill
1851 short of even receiving / cent
additional return on it's enlarged in,
vestment. The percentage of return
on property investment in 1918 "a
7.49 per cent while in 1918 it had fallen
to .5.48 per cent. I
1.-THE amount of wages paid" CON-
about $4,000, 900 during the period
1910 to 1913. approximately $15,00O,-
600 Of which is due to increased rates
Of pay. In addition to large. expendi-'
lures had to be made for more sub
stantial and heavier equipment, high
err standard of roadbed and more mod
ern interlocking. Taxes have increas-
ed $4,079, 779 as between 1910 and 1913.
Summing up the operations, we
have. comparing 1918 with 1910, an in
crease in tonnage, but a decrease In
the average revenue per ton per mile,
was more than absorbed by the large
expenditures classed as other deduc-
tons from income and by higher fix
ed charges, so that the net corporate
income was 1852 per cent less than
1910. Taxes have grown at a rate
greater than either revenues or operat-
ing expenses. In 1918, taxes required
an amount equal to 64.5 per cent Of
the total dividend disbursements"
Vice President Shriver, Of the Ba1ti-
more & Ohio also presented statistics
relating to the Baltimore & Ohio
which summarized the effect on that
change which have come about since
1910, to be as follows:
Revenues decreased by reason of
reduction in rates $500, 900, total added.
expenses and taxes, including 81, 000,-
900 for increase in wages $6,467, 900,
increase In interest charge at 5 per-
cent on $4,000, 900, increase in capital
creased expense of $~9,267,O0O.
The surplus Of the road, Mr.. Shriver
testified, was in 1910. $4,773, 900, after
paying interest and dividends, and in.
1918, was 100000.
Protests against the proposed in,
crease in rates were formally filed to-,
day in behalf of the Pittsburgh
Coal Co. and the new Pittsburgh Coal
Co. Of Pittsburgh, Pa, and Columbus
O., by Charles NJ. Johnston, E. c. Nor,
ton and Frank Lyon, who later will
argue against the increase. Rush c..
Butler, representing the freight traf-,
fc association of the Chicago Associa-,
ton Of Commerce, also entered an ap-,
pearance.
Tomorrow the railroad companies,
will continue to present testimony and,
when this is all in by Wednesday at
the latest, the commission will ad-,
journ the hearing until the middle Of
December or early in January. At
that time the shippers and general
public will be given IN opportunity to
present their side of the case. In the
meantime Louis D. Brandeis, counsel
for the commission, will investigate
the claims of the companies. Formal
protest against Mr.. Brandeis' appear,
ance in the case on behalf of the COM
mission was filed today by T. G. Spell
man, an attorney Of New York. The
protest was placed on file.
---- --
Z, a wzv a No l