The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-11-25
Railroads Doing Moro Business
Than Ever Before
But Have Little to Show for 1t,
Officials Say.
REVENUES Are EATEN UP
By High Taxes and Increases
in Employer Wages.
Net Returns Less Than Half
Those of Manufactures.

Washington. Nov. 25.-Representa-
tives of railroads in the central
freight association territory were
heard today before the interstate
commerce commission in support OF
the application for a general five 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 railroad, was Ques-
toned concerning the increases in
cost of operation during the last three
years and the relatively small in
creases in net income. Another wit
ness was DR.. Frank Haigh Dixon, pro-
lessor at Dartmouth college and sta
tistician Of the bureau of railway
economies, called to explain tables
submitted yesterday relating to the
operations Of - railroads in the ter
rftorY to be Immediately affected by
the proposed five per cent increase.
Professor Dixon directed the prep
aratfon of the tables. 1t was expected
that the preliminary would be con-
eluded today and that tho commission
would adjourn the hearing for sew
eral weeks to give counsel for the
commission and the shippers oppor-
tunity to study the case presented by
the railroads.
Mr.. Maxwell testified particularly
a. to results Of operations and finan-
cial condition Of railroads between
Pittsburg and Buffalo in the Central
Freight association territory. his data
relating to 50 railroads with 1887
miles Of line. ALI those railroads, he
said, while showing in 1913 gross in
crease in operating revenues OF Vs.
100000 more than for 1910, suffered
. loss Of $12,000.000 in operating in
come.
Big Increase In Expenses.
'"This result" said Mr.. Maxwell.
was due to an increase in the ratio
Of operating expenses and taxes as
between 1910 and 1913, from 70 per
cent to 1872 per cent This showing
sums of new capital were invested in
additions and bettermemts- Besides
the loss in net revenue Tor the year
ended June 80. 1913, as compared
with 1910, the figures for these same
SO roads for the three months Of July,
August and September, 1913. show a
decrease in net operating earnings Of
36,937,353, or approximately 20 per
cent"
to the condition of a special group Of
roads which as claimed by A.. A. De-
lano yesterday we're more particularly
representative of the whole situation
in Central Freight association terri
tory.
That group embraces % roads with
z3,167 miles OF road, or DID per cent
Of the entire mileage in the territory
and includes such lines as the Big
Four system, Vandalia. Chicago &
Eastern Illinois, Grand Trunk Western.
Grand Rapids, Illinois Central, Chi
cago h Alton and Wabash railroads.
TN 1913 roads in this group" Mr..
Maxwell asserted, earned $63, 0O0, 900
more than in 1908, which Is known as
the panic year. and operation expenses
and taxes were $50. 000. 900 more. Net
earnings. after paying expenses and
taxes, were only $s11.00 more than in
1908. The net corporate income Of
these properties was actually $4,000. 900
less than In 1908. although during this
five year period $3.50 ,000, 900 new capital
was put into these properties"
Earnings Eaten Up.
In 1913. according to Mr. Maxwelrs
figures, the roads in this group earned
$S6,000.00O more than in 1910, operating
expenses and taxes were $45, 900, 900
than in 1910, and the net, after opera.-
ing expenses and taxes, decreased So
100000 while the corporate income de-
creased almost H7.000, 900.
DR.. Dixon, who directed the prepara-
ton Of statistics submitted yesterday
for the railroads reviewed those figures
today in detail He also stated that
the total operating revenues for the re-
spondent systems were greater by 1851, :
100000 in 1913 than in 1910, that operat-