The Birmingham age-herald., 1913-11-25
Representatives of Eastern
Railways Submit Request
to the Interstate Com
merce Commission
CLAIM EARNINGS NOT
COMMENSURATE WITH
EXPENSE INCREASE
Claim Upheld in Preliminary Outline
of Railroad Situation by Daniel
Willard - Cite Figures to
Sustain Contention-Pro-
tests Are Filed

Washington, November 3d.-ThHt
railroad earnings are not commensur-
ate with the increased cost of opera
tion. higher taxes and wages and adj
ditions do equipment necessary to meet
commercial demands of the country.
was submitted today TO the interstate
commerce commission by representa-
tiyes of the railroads arguing for "a
general Increase of . per cent In
freight rates.
! The claim filed by railroads operating
in the territory east of the Mississippi and
north of the Ohio and Potomac rivers was
upheld in preliminary outline of the rail
road situation by Daniel Willard, presi-
dent of the Baltimore and Ohio railroad,
representing for the occasion the eastern
roads, and Frederick A. DeLano presl-
dent of the Wabash railroad on behalf of
| the Central Traffic association. Statistics
tending to show the curtament OF earn
ings as compared to increased costs We're
submitted by an accounting committees
composed of c. NJ. Bunting comptroller
of the Pennsylvania railroad; w. c. WISH
art. statistician of the New York Central
lines; w H. Williams, third vice presi-
dent OF the Delaware and Hudson COM
pany; c. p Crawford, comptroller of the
Erie railroad. and George NJ. Shriver,
second vice president of the Baltimore
and Ohio railroad.
Decrease in Earnings
President Willard in an opening state
ment asserted that railroads in the terri
tory cpcnerned had expended in property
! investmentssiu the iast three years SGD.
/ O00.0ao, and that in the year 1918 the earn
lngs were $l63ll.321 less than for tile year
1910. lie argued that the 5 per cent in
crease applied for was not a s much as the
railroads We're entitled to- and In this he
was supported by President DeLano. who
argued for the railroads in central terri
tory, and urged that in liking rates the
commission should regard no particular
territory. Figures for the first two
months OF the present year, Mr.. DeLano
said, were less encouraging than the re-
suits since 1910, when an appeal for 10
per cent increase in rates was denied.
Figures submitted by Mr.. Shriver for 10
railroads in the territory involved showed
| that the net operating income for 1913 had
actually decreased more than $14,000,00,
while operating expenses and taxes had
J Increased A-Ul,VuO,VOO since l9lV Another
! TIA Bile combining the interests of the New
York Central. Pennsylvania and Balt-
more and Ohio systems showed that tho
net operating income had decreased s., 3so-
| 710 since 1910. II was also shown that IN
! this period the property investment for
these three roads had increase 5l.Go per
| cent; gross earnings 63 35 per cent while
the net operating income had increased
| only $3.50 per cent
| c. M. Bunting of the Pennsylvania tes-
| titled that the return on property invest
ment of that system had shown declln-
ing tendency since 1908. and steady de-
! cline since 1910.
Between the years 1910 and 19i3," said
| he there was an increase of S207, 1s6.9l9
| in the property investment and decrease
| in the net operating income of 81. .4S5.5tl.
In other words, the Pennsylvania system
was s1l,is5,5l1 short of even receiving one
| cent additional feturn on it's enlarged in
| vestment. The percentage of return On
property investment in 1898 was 7.49 per
cent. while in 1913 it had fallen to 5.is per
cent,
Wages Increased
1.-THE amount of wages pa i'd" continued
Mr.. Bunting. has increased about $685. .000.-
900 during the period 1910 to 1913. apprexl-
mately $4,000, 900 of which is due to in
creased rates of pay. In addition large
| expenditures had to be made for more
substantial and heavier equipment higher
standard of roadbed ana more modern
| interlocking. Taxes have increased sI019.-
| 779 between 1910 and 1913.
| Summing up the operations. we have.
comparing 1913 with 1910, an increase In
/ tonnage, but a decrease in the average
revenue per ton per mile, increase ii
! operating revenues of 14.93 per cent an in
crease of 23.13 per cent in operating ex-
| penses, an increase of 1858 per cent IN
taxes and a decrease of 1913 per cent in
| net operating income, with an increase II
! l7.56 per cent in the property investment
| account
Even Il the total freight revenues Of
| the Pennsylvania system in 1919 had been
/ greater by per cent. the return from
| operations upon the property investment
would have been 6.42 per cent. or only
about / per cent greater than the percen-
tage actually realized
/ w. G. Wishart of the New York Gem
trail said that system. since June 30, 1910
had added 100000 to the property which
1t deyotes to public use.
/ THE whole system he added had in
the year just closed s3,2s4, 7So less net cor
porate income than in 1910. The dividends
declared IN 1913 were over 100000 less
than in 1910. Notwithstanding the increase
of 100000 in the gross operating revenue
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