The Washington times., 1913-11-24

may managers contend that the future
prosperity of the properties over which
they have control, as well as the pros
perity of the country as a whole. de-
pends upon increased railway rates.
This view Is said to be shared by
many large shipments. although multi
tudes of small shippers have entered
protests against the application Of the
carriers to advance rates.
The burden of proof that increased
rates are warranted is laid on the rail-
roads, under the law. and officials say
that II will take the railroads some
weeks to present their case In full.
Critics of the railways charge that II
these corporations were not vastly over
capitalized that they could be conducted
profitably at the present rates. The In
terstate Commerce Commission will not
go into the question of capitalization to
any great extent at this time. That Is
a subject that will be passed upon by
the commission in the future. 1t Is
involved in the physical valuation of
railroad property, a valuation that the
commission is about to make under the
authority of a law passed by Congress
at the last session.
Earned S4os a Month.
Figures just made public by the
commission giving railroad receipts
for September, this year, as compared
with September, 1912. show that gross
earnings have increased, while net
values have declined sharply. These
figures show a decline in net earn
ings Of more than five and half
million dollars. Net revenue In Sep
tember, 1912, was in excess OF $96,000,-
900. 1t dropped to less than $s1,000.ooo
in September Of this year.
1t cost SITS to operate every mile OF
railroad in the United States in Sep,
tember, 1912. The cost had increased
to 1881 in September Of this year. Al
though gross earnings have increased
in the past year the operating moons
of the railroads, according to their
reports to the commission. has not
been reduced materially. 1t amounted
to $8S, 1000 900 in September. 1917, II
dropped to $79,000,000 in september
Of this year. The railroads were
little more than s433 a mile.
The per mile net earning September,
this year, was S4O5.23. These figures
show that with increased rates the
railroads will prosper, as business is
increasing in every direcuol' put IL -
proportion to the increase in operat-
ing expenses.
Railway managers declare that they
must be allowed more revenue II they
are to keep pace with demands for
higher wages and outlaJs in other d.
Iections.
Five hundred and ninety carriers are
directly involved in the rate case about
to be taken up by the commission. Ihey
have filed something Like 2S,OU tariH
sheets, setting forth the increases de-
sired. Taken as a whole, the increases
ahoTrf < nar cent
Speaking privately, officials OF the IN.
terstate Commerce Commission say that
many railroads should be permitted to
increase their rates. Whether q gen.
eral increase should be allowed Is
question that the officials will not dis
cuss.
They point out that there are many
problems involved in the question OF
rate making. For example. there are
two railroads in the Esst that are aa, at,
an Interesting situation. Ole of them
is prosperous, its securities selling at
a price that is almost prohibitive to the
investing public. 1t has parallel COM
petitor that is run at loss.