Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1913-11-28
III f s f N TIN Ell.
ROCKVILLE, MD.
Friday Morning. Sc November %, 1918
RAILWAr Us RENEW RATE JUMP
PLEA,

Claiming that they have been affected
by the increased cost of living. that their
incomes have not kept pace with their
expenditures, and that they are in no posi-
ton to obtain new capital to provide the
needed facilities and furnish the high-class
service which the public demands, unless
they are permitted to increase their freight
rates 5 per cent, representatives of East
state Commerce Commission Monday last
to present facts and figures to substantiate
their claims for an increase in rates.
Though the proposed increased rates are
asked by the railroads in the territory east
of the Mississippi and north of the Ohio
and Potomac Rivers, the hearing is of the
utmost Importance to all the railroads of
the United States, for should the Commits
sion grant the authority for the increase,
it might extend the authority to the other
railroads of the country.
The railroads were represented before
the commission by Daniel Willard, presi-
dent of the Baltimore & Ohio; F. A. De-
lano, president and receiver of the Wabash !;
George M. SILVER, second vice-president of
the Baltimore & Ohio; C. M. Bunting, au-
ditor for the Pennsylvania lines, and W.
c. Wishart, statistician for the New York
Central.
In presenting the main facts upon which
the railroads will rely to prove the neces-
sity for the increase, President Willard
stated that during the past three years the
roads in the territory affected spent in
property investment some 100000, 900.
Because operating expenses had in
creased faster than operating revenues,
Willard contended that these roads earned
in the year ending June 80. 1918. less by
$l6,311,321 than for the year ending June
80, 1910. Willard stated that the COM
bined gross earnings of the Pennsylvania,
New York Central and Baltimore & Ohio
system in these three years had increased
100000, 900, but that the net operating
income was $8,573,507 less in 1918 than
in 1910, notwithstanding the expenditure
for betterments of $422,OOO,0OO addi-
tional equipment.
Willard maintained that the new capital
invested in railroads in official classical
ton territory during the last three years
had earned little or no return. THE result
of this constant tendency toward diminish
ing net returns" said Willard. has been
to seriously check. if not altogether stop,
the normal development of railroad facili-
ties in the territory affected.
Since 1910 wage payments by the rail-
roads affected had greatly increased, Will
lard pointed out. the award just announced
by the Board of Mediation and Arbitration
would give the conductors and trainmen
$6,O0O,000 year additional The effect
of the so-called full-crew laws alone, he
said, had been to increase expenses of
these carriers more than 100000 per |
annum.
The railroads affected paid SABBATH |
in the shape of taxes for 1913, this being |
$l,579,lS7 more than in 1910, he asserted.
The three larger railroad systems paid in
taxes $31,2l6,0O0 in 1918. this being ST.
$4,000 more than for 1910.
Willard, in concluding his statement, in
timated very strongly that if the advance
in rates asked for was denied by the Com
mission private capital could no longer be
expected to continue in the transportation
business
r. A. Delano, speaking for the lines west
of PittSburg and Buffalo. claimed that even
the S per cent. increase in rates asked for
will not be adequate to meet the demands
of the territory.
At the conclusion of the argument by
the railroad representatives, the Commits
sion will take recess until the first of the
year AT that time the shippers and gen.
eral public will be given an opportunity to
present their side of the case.