Evening times-Republican., 1913-11-24
HEADS OF ROADS APPEAR BE.
FORE COMMERCE COMMISSION
TO ARGUE FOR INCREASE.
FIVE PER CENT ADVANCE
AFFECTS MUCH TERRITORY
Railroad President Present Figures to
Show That Whlo Gross Revenues
Have Increased, Expenses Have M ade
Greater Advances and Profits Are
Jeopardized.

Washington, Nov 24.-Daniel WILL
ard, president Of the Baltimore s. Ohio:
Wabash; and George Stuart Patterson.
general solicitor OF the Pennsylvania.
appeared before the Interstate COM
merce commission today to argue for
authority to increase rates on all
classes of freight of approximately s
per cent east Of the Mississippi and
north of the Ohio and Potomac rivers.
The hearings are Of utmost import
ance to all roads Of the United States,
for should tho commission grant per-
mission for the increase it might ex-
tend the authority to other roads.
The commission will inquire whether
other roads will yield added revenue to
other carriers and much interest in the
hearings will be taken.
Many Roads Represented.
AT the opening Of the hearing ap-
pearances were entered by officials
and counsel for the fifty-two eastern
railroads. Approximately 25O repre-
organizations were present. Louis D.
Brande1s. of Boston, and Frank Lyon,
Of this city, appeared as counsel for
the commission to develop of 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
Marble, member Of the commission,
who died suddenly last week.
A preliminary statement was made
by George Stuart Patterson. solicitor
OF the Pennsylvania road, who asserted
that the proposed increases present.
ed an economic question. the outline
iof which 1t was fitting should be pre-
|sented by executive officers Of the
great rail roads systemss
Roards Not Making Profit.
Statistics to show that operating ex.
penses have increased faster than the
gross earnings and that net earnings
have returned nothing on new capital
invested in the last three years was
presented by George s. Trivers, vice.
president Of the Baltimore & Ohio.
According to an elaborate table
forty railroads owning $3.50
miles Of roadway with total Of 1925
miles Of track are concerned In the
application for the rate increases. The
figures summarized were submitted to
show that gross earning from 1910 to
1913 increased s1SS,000.0o 900, while the
operating expenses and taxes increased
s2O1. 100000.
Deiano Makes Appeal.
Arguing on behalf Of the Central
Freight Association lines, which takes
in lines from Buffalo and Pittsburgh
west to ST. Louis. Mr.. Delano. Of Chi
cago. president Of the Wabash railway.
presented to the commission the claims
Of these railways to the right to put
into effect their tariffs increasing by
per cent their rate on commodity and
class freights. This increased tariff
was filed with the commission on Oct.
15, last, and was to have become efrec-
tive Nov. Is, last. but was suspended
when the commission agreed to reopen
the so-called 1910 case.
I'm the 1910 case" said Mr.. Delano.
"the commission reiterated a principle
1t has frequently applied in previous
cases involving the -easonableness of
competitive rates, which Is tersey
stated in the following sentence taken
from the Spokane case:
We must, there fore, IN fixing rates,
have regard not altogether to any one
particular railroad, but 20 the whole
situation, and must consider the effect
of whatever order we make upon all
these defendants.'
Says Expenses Have Grown.
''The great network OF railways COW
ering the entire territory earned dur
ing the year ending June 30. 1910" he
said Mr.. Delano. 1929 900, 900, and dur
ing the year ending June 80, 1913,
s275,000,000 or gross increase Of about
s36,000,000; but in the former year
the operating expenes and taxes were
s182,000 and In the latter year. $227.-
900, or an increase in expenses Of about
s45,o00,000. resulting in a decrease in
net revenues, after payment Of taxes.
of over $9.000.000, and in net corporate
revenue Of more than $4,000, 200"
Calls For Prompt Relief.
Mr.. Delan declared the figures for
the first two months Of the present
fiscal year were still less encouraging.
"The evidence" said he. will show
that the lines in Central Freight Asso-
citation territory are confronted with
the expenditure in the near future Of
m illions of dollars in the separation of
grades in various cities, on which they
will receive no adequate return, and
many of the lines have not the credit
to raise this money. This circumstance
in view Of the present conditions Of the
roads, presents q serious situation
which calls for prompt relief.
"A per cent increase in rates will
not be adequate to meet the demands
OF the territory. "The rate in that
territory, both freight and passenger,
arc the lowest rates prevailing In the
United States, and the interests Of the
people of that rapidly growing and de-
veloping section OF the country, to say
nothing of the carriers, require. in the
near future, readjustment of the
ra tes. both freight and passenger, to
basis which will enable that territory
to have good railroads and the people