The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-11-26
AN INCREASE IN
FREIGHT RATES
ASKEOBy ROADS
representatives of Trans
portation Companies APP
pear Before Commission
and Present Reasons for
Application.
BY ASSOCIATED PRESS.

Washington, Nov. 25.-Representa-
tiveS of railroads were heard today be-
sion in support of the application for
a general per cent increase In
freight rates east of the Mississippi
and north Of the Ohio and Potomac
rivers.
w. C. Maxwell of st. Louis, general
traffic manager of the Wabash rail-
road, was the first witness and J. L.
MINIS, general counsel, questioned
him on tabulated figures relating to
the increases in cost of operation dur
Ing the last three years and the rela-
lively small increases in net income.
Another witness today was DR..
Frank Haigh Dixon, professor at Dart
mouth college and statistician of the
bureau of railway economies, called to
explain tables submitted yesterday re-
lafing to the operations of forty mine
railroads in the territory to be in1me-
diately affected by the proposed 5 per
cent increase. Prof Dixon directed
the preparation of the tables
1t was expected that the preliminary
testimony would be concluded today
and that the commission would ad-
journ the hearing for several weeks to
give counsel for the commission and
the shippers opportunity to study the
case presented by the railroads.
Mr.. Maxwell testified particularly as
to results of operations and financial
conditions of railroads between Pitts
.DurS ana BunatO IN the SSuITdI T0lSAJ
Association territory, his data. relating
to thirty eight railroads with 31,937
miles of line. 9
All those railroads, he said, while
showing in 1913 a gross increase in
operating revenues of $7S,000.000 more
than 1910. suffered a loss of $4,000
600 in operating income.
This result" said Mr.. Maxwell,
twas due to an increase in the ratio
of operating expenses and taxes as
I.a@ ne
cent to 1872 per cent. This showing
was made despite the fact that large
sums of new capital were invested in
additions and better1nents.
FIGURES SHOW DECREASE.
Besides the loss in net revenues for
the year ended June 80, 1913, as com
pared with 1910. the figures for these
same thirty-eigh roads for the three
months of July, August and Septem-
Der 1913, show a decrease in net oper-
atiag expenses of sc, 937,3 1853, or approx
imately 20 per cent"
Mr. Maxwell directed special atten-
ton to the contention of special
group Of roads, which as claimed by
F. A Delona, yesterday were more
parff cularly representative of the
whole situation in Central Freight AS
ISOLATION territory. That group en-
braces % roads with 23,167 miles OF
in the territory and including
such lines as the Big Four system,
Nandalia Chicago and Eastern Illinois,
Grand Trunk Western, Grand Rapids,
Illinois Central, Chicago and Alton,
ard Wabash railroads.
I'm 1913 roads in this group" Mr..
Maxwell asserted, earned $63, 600, 900
more than in 1908 which is known as
the panic year. and operating expenses
and taxes were $4,000, 900 more. Net
earnings, after paying expenses and
taxes, were only $4,000 more than in
1908. The net corporate income Of
these properties was actually $8,000,000
less than in 1908 although during this
five year period $1s0,000,000 new CAPT
tai was put into these properties"
In 1913. according to Mr.. Maxwelrs
figures, the roads in this group earned |
$36, 600, 900 more than in 1910, operat- |
more than in 1910, and the net after
operating expenses and taxes paid de- |
creased $4,000, 600, while the corporate |
income decreased almost $17,000.00o.
GREAT OPERATING EXPENSES.
DR.. Dixon, who directed the prepa-
ration of statistics submitted yester- |
day for the railroads, reviewed those |
figures today in detail. He also stated
that the total operating revenues for
the respondent systems were greater
by $1S1, 900 900 in 1913 than in 1910, |
that operating expenses, taxes and net |
revenue from outside operations were
greater by about $194, 500, 900 so that
operating income showed decrease
fact that there was an increase of
S600.000,000 in property investment. |
Railway net return for 1910, he said, |
81 per cent upon capital, |
while 104 manufacturing concerns in
the United States showed a. CORE !
spending return of lis per cent and !
the net return for all manufacturing |
in the country was IL per
cent.
Aggregate compensation TO railroad
employees, excluding general officers, in |
the group affected, increased, accord |
ing to DR.. Dixon, from 1854, 200, 900 in |
1913 to 1867, 000 900 in 1912, or IS per [
cent. The amount of increase between |
1910 and 1912 was So, 900 600 and the |
rate of increase II per cent, while the
annual average for the second half of |
the decade 0908-1912) was greater |
than the annual average for the first |
half (1903 1900 by $95,o0o.0oO, or % |
per cent.
At the present time the average |
wage of engineers, passenger or freight, /