The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-11-25

CONTINUED from First Page)
az extra crews. liability and compen-
sation acts, and other conditions. He
called attention to the fact that since
1910 wage payments by the railroads
affected had greatly increased, Largely
as a result of mediation and arbitra-
ton proceedings, and that the award
Just announced by the arbitrators
would give the conductors and trainmen
$6,000,000 per annum additional
The railroads affected paid $54,419,-
TT in taxes in 1913, this being SILL
579,1 more than in 1910, he asserted.
The three larger railroad systems paid
in taxes $31, 900 in 1913, this being
$7,854 900 more than for 1910.
Statistics to show that operating ex-
penseS have increased faster than gross
earnings and that net earnings have
returned nothing on new capital in
vested in the last three years were
presented by George ~. schriver, vice
president of the Baltimore and Ohio
railroad.
According to an elaborate table
forty nine railroads owning $3.50 miles
of roadway, with a total Of 1928
miles OF track are concerned in the
The figures, summarized were submit
ted to show that gross earnings from
1910 to 1913 increased $1e6,o00,000
while operating expenses and taxes in
alone increased from $50, 100000 in 1910
to S54 400, 900 in 1913, and the net oper-
ating income actually decreased $14,-
100000.
In the three years the actual prop
erty inves tment increased by almost
$500. 100000. 1t required, according to
the railroads estimates. about $3.50
new property investment for each doll
lar of increased gross earnings and
for each s1.S6 Of increased gross earn
were s2.01, without allowance for new
money spent to supply facilities to
earn the increased gross revenue.
In 1910 the companies showed net
operating income equal to 6S.2 per cent
on their poreyt investment but in 1913 |
that percentage had fallen off 10 53.6 |
per cent.
The total capital obligations of the
forty-nine companies, the tables show, |
are $6,3S9,00 900, Of which the funded
der capital stock. The companies !
earned last year in gross 81, 424, 000. 600. |
Their net earnings after deducting ex- |
penses and taxes were $347 100000. |
Their income after payment of interest |
on funded debt was $206, 000, 900. Out |
Of that income the companies declared |
dividends of $40 per cent on the cap |
ital outstanding, amounting to $780,
900, 600. which is $19.000,000 less than |
the dividends paid out in 1913 and ST.
O0O, 600 less than the dividends in 1910. /
BRANDElS PRESENT.
At the opening of the hearing ap- |
pearances were entered by officials an6 /
counsel of the f1fty-two eastern raiar |
roads. Approximately ESQ represent&>
lives OF the railroads and OF shippers
were present Louis D.
Brandefs and Frank Lyon appeared as I
counsel for the commission to develop
facts in opposition to the proposed
advance in rates.
Before proceeding With the hearing,
Chairman Clark of the commission
paid a high tribute to the late John 4.
Marble, a member of the commission
who died suddenly last week.
A preliminary statement was made /
~ George Stuart Patterson, solicitor
Of the Pennsylvania railroad, who as
serted thar the proposed rate increases
presented great economic question,
the outline of which, it was especially
6tting. should be presented by execu-
tive officers of great railroads systems.
He said that while Mr.. Willard and
Mr.. Delano had been selected to make
the opening statements for the car
ritrs. later they would appear as wit
ton.
Mr.. Schriver presented a com pined
financial and operating statement of
he New York Central. the Pennsyl-
vania and the Baltimore and Ohio sys-
TENS for the past eleven years.
The statement showed that the three
systems have about fifty per cent of
she mileage in the eastern territory
and that their property investment
aggregates SIS, 25S, 431. GOA sum great
or than it was at the close OF 1893 by
i, 107. 335, sic.
The gross earnings rose during the
oeriod from SASS, 1885 21 to $797, 362,-
aIS, the earnings for 1913 being the
greatest in the history of the roads.
The net operating income, however,
: $3.50, TO less in 1913 than in 1910.
Willie the property investment in
creased $3.50 per cent and the gross
increased $685. per cent, the
.et operating income increased only /
- SO per cent.
I'm other words, said Mr.. Schriver,
the increase of net operating income
represented a return on the new in
vestment Of S.59 per cent only"
The decreased return on property
Investments and capital obligations"
said Mr.. Shriver, els shown to be due
to the increasing cost OF
operations, although lower return per
freight and passenger units has also
AS against an increase
IN operating revenue between 1903 and
1919 of assout $309, GOO, 900 operating ex-
oenses Increased 1000, co., The
N flo, Of AcEneuSes In total orer1fiue~A