The Washington times., 1913-11-24

'
vested in other enterprises of similar
kind or character.
LAS a matter of fact money so in
vested during the last three years,
taken as a whole, has earned no re-
turn whatever, and during the whole
ten-year period under consideration
has earned approximately but 2h per
cent.
In view of all this. those respon-
sible for the management of these
properties would not be justified in
continuing large expenditures of new
capital for additional facilities and
equipment even If such capital were
available at reasonable rates of in
terest.
Tho problem in a broad and true
sense affects all interests, and the out
come of this particular case-whichever
way 1t is decided-will mark an epoch,
because it will, in effect, very largely
determine whether we shall, as in the
past. continue to look to private capital
and private enterprise for our trans
portation requirements, Or be compelled
possible
Mr.. Willard concluded by saying that
he thought that the answer to the Ques-
ton of how the railroads were to obtain
the new capital necessary was to be
found In these words of the report of
| the commission In 1910, which he had
already quoted:
I'VE should allow such rates which
VIII yield to this capital as large a re-
turn as it could have obtained from 9TH
er Investment of the same grade. II
rates formerly in effect have become
insufficient, then higher rates should be
permitted. Commerce and industry can
not afford to wait on transportation ia
! cilities."
Speech of Delano.
Frederick A. Delano, receiver Of the
Wabash railroad, spoke for the rail-
! roads west of Pittsburgh and Buffalo,
and east of the Mississippi river. He
| contended that the whole situation"
| In the Middle West lis the fair measure
| of the reasonableness of rates in that
| territory, and calls for very substan-
tial increase in rates.
| Mr.. Delano, accordingly, directed par
| ticular attention to the case of a group
| of railroads with an aggregate mileage
| of S,l67 miles, among which were EN-
braced the Big Four system, the VAN
dalia, the Nickel Plate, the Chicago and
Eastern Illinois, Grand Trunk Western,
| Grand Rapids and Indiana, Pere Mar
quette, Chicago. Hamilton and Dayton,
! Illinois Central. Chicago and Alton. and
Wabash. Referring to this group, Mr..
Delano said:
If the mileage is not influential in
! determining the reasonableness of rates,
I the prosperity, commerce, and develop
/ ment of the whole territory will be
! placed in jeopardy"
4 Mr.. Delano pointed out that there
were great differences in the conditions
! prevailing respectively in New Eng
land and also in the territory between
New York and Buffalo. as contrasted
whereas in New England. including
New York city, there were 1,3s9 people
for each mile of railway. and SSS for the
Z territory east Of Pittsburgh, but only
! sos in the middle West The rural
population in the middle west was 46
per cent, as compared with II per cent
/ in New England
speaking Of the middle West, was
created largely by physical deveiopment dne,,
| lakes and rivers, some of which form
its boundaries. attracted to their bor-
! ders the early settlements and cities.
and In time came Chicago and st.
| Louis its two chief centers of popula-
! ton. The territory is comparatively
level, which facilitated railroad build
ing, and, as population increased, rail-
roads were constructed in all directions,
| the objective points being, naturally,
| lake and river cities.
water (0mpeuuOn.
"It is a well-known fact that in the
development of that territory water
competition has always been an i'm
portant factor, and that the railroads
have promoted the growth of population
and industrial development by low
rates Again, railroad building at
times has been in excess of the growth
of the country. and caused abnormal
competition. resulting in lower rates.
This great network of railroads.
continued Mr. Delano. during the year
ended June 80. 1910. earned s2S9 100000,
and during the year ended June 80. 1913,
s275 90 600, or a gross increase of about
SIG. 900, 900; but in the former year the
operating expenses and taxes were
$1S2 0O0, 900 and in the latter year VII
100000, or an increase in expenses OF
about S45. 600 900. resulting in a decrease
in net revenues. after payment OF taxes.
of over 100000. and in net corporate
revenue of more than s16,0o0.oc0.
These same roads, during the year
ending June 80, 1908 (Which will be re-
numbered as a panic year., earned IL
million dollars. and during the year
ending June 30, 1913, 275 million. or an
increase of s. million; but, during the
| year ending June 30. 1908, the operating
| expenses and taxes were l65 million, and
the gear ending June 30. 1913, 22l mil
lion-an increase OF about e. million.
Now, despite the fact that during
that same period more than l75 million
Oollars were put into additions and bet
terments, the net income, after deduct
ing operating expenses and taxes. show
- =. ir"rnasp Of only $4,000 while the
net corporate income actually decreased
.-.pG, .,.9v'tp.