The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-11-26
ARGUMENT FOR
AN INCREASE IN
FREIGHT RATES
Railroad Officials Claim That
While Business of Roads Is
Growing Profits Are
Steadily Decreasing.

WASHINGTON, Nov, 25-Prelimi-
nary hearings before the interstate
commerce commission on the upplica
ton OF the railroads in eastern CLASH
hcaLlon territory Tor an advance OF D
per cent in all freight rates were con
cluded late today. AN adJonrnment was
taken until December 10 TO afford the
COMMISSION and opposing counsel time
to anaiyze the mass OF statements, tes
tlmony ana statistics submitted by at
torncys Tor the roads,
The evidence submitted today was
designed TO demonstrate III concrete and
analytical form the declared necessity
for the proposed increase in freight
rates Accounting experts, statistlclans,
rate makers and experienced traffic Otn-
GERS submitted to the commission will
derness Of tables, showing the financial
operations of the eastern roads, separ-
ately and combined. Many months have
been spent IN their preparation. They
are to be made the basis Of the testI-
mony subsequently to be offered III sup
port Of the proposed increase,
Decrease in Profits.
The figures offered today tended to
prove that while the roads, generally,
were enjoying an increased business,
the returns from operations contlnu"
| ously were decreasing, until as Vice
President Maxwell OF the Wabash de-
/ clared:
"The situation is becoming daily
more serious. We are suffering from
| slow starvation
| 1t was stated that the demands of
| the travelling and the shipping public
for improvement and extension of rail
road facilities could be met by the
roads only as they were enabled to OBJ
mi, rl,o aT
| it, it was asserted, was narrowing 80
constantly that it was bee oming increas-
| ingy difficult to obtain the necessary
additional capital with which to main
tain, equip and operate the roads.
Elaborate explanations were made of
| the methods pursued in making the
per cent increase, which, substantially,
it was developed, applies to all traffic
except eastbound anthracite coal. On
anthracite no increase was made be-
cause of pending Investigations by the
interstate commerce commission and by
| the department of justice.
| Mr. Maxwell testified particularly as
to results of operations and financial
conditions of railroads between Pitts
burg and Buffalo, his data relating TO
thirty eight railroads with 3l,937 miles
of line.
Loss in Income.
All those railroads. he said, while
showing in 1913 gross increase in op-
| Grating revenues of $7S,000,000 more
than for 1910, suffered loss Of $12,-
100000 in operating income
Mr.. Maxwell directed attention to
the condition OF special group of roads
which as claimed by F, 4. Dolano yes
terday, were more particularly repre-
sentative of the whole system In cen
l,o1 f,o, ,,r1,k hot
group embraces twenty.eght roads with
23,167 miles of road, or 51.5 per cent
of the entire mileage in the territory.
"In 1913 roads in this group" Mr. Max
well asseTted ted earned SSS 1000 more ore
panc N Year and wosh and ind
taxes were s62, 100000 more. Net earn
ings after paying expenses and taxes axes
The net corporate income Of these proper
ties was actually $4,000, 900 less than in
1908. although during this hve-year pc
riod s1so.ooo,ooo new capital was put
DR.. Dixon. who directed the prepara-
ton Of statistics submitted yesterday for
the railroads. received these figures to-
day In detail. He also stated that the
total operating revenues for the respon-
dent systems were greater by 1881 000,-
600 In 1913 than In 1910; that operating
expenses taxes and net revenues from
outside operations were greater by about
s1st 100000 so that the operating Income
showed decrease approxiInating Sl3,-
500, ,000 despite the fact that there was
an increase Of $500. 600. 900 in property in
vestment.
Aggregate compensation to railroad
employees, excluding general office In
the group affected. increa sed. according
10 DIR. Dixon. from 1854 1000, 600 In 1903
to 1851, 600 ooosin 1912, or 56 per cent,
At present the average wage OF en-
gineers. passenger or freight. 10 $1,000
per year, the average wage Of fire.
man 5000 per year. the average wage OF
conductor s1451 and the average wage
Of a trainman s1016 per year
Figuring of Advances.
c.. c. Mccain chairman OF the Trunk
Line association, who had supervision
OF the preparation Of the proposed ad-
vanced tariffs. explained In detail the
methods employed in figuring the ad-
vances,
THE proposed first-class rate between
New York and Chicago" said Mr. Nc
Cain. as 7ss cents per hundred pounds
instead OF 75 cents as at present In
this increase the rates are expressed In !
a tenth Of cent The same system was
employed In figuring rates to intermedI- |
ate points. This results In making the |
increase In some instances more and In |
other cases less than per cent All OF |