The Sentinel=record., 1913-11-26
RAILWAYS SAY THE RAISE THEY ASK WOULD NOT BE AN
 ADEQUATE EARNING
CANNOT IMPROVE THE ROADS
Unless an Advance in Rates is Grant. ed to Meet the Advance in Wages and Other Operating Expenses cf the Railway Lines.

Washington. Nov. 25.-Prelimlnary hearings before the Interstate Com. merce commission on the application
 of the railroads in eastern classified.
 ton territory, for an advance of five per cent in all freight rates were con cmded late today. An adjournment
 was taken unti Wednesday. Decem.
 Der 10, in order to afford the com mission and opposing counsel time to
 analyze the mass of statements, testi-
 mony and statistics submitted by at- torneys for the roads. The evidence submitted today was designed to demonstrate in concrete
 and analytical form the declared ne. cessity for the proposed increase in freight rates. Accounting experts,
 statisticians, rate makers and expe. rienced traffic officers submitted to the commission wilderness of tables. showing the operations OF rne eastern roads, separately and combined. Many
 months have been spent in their prep.
 aration. They are to be made the
 basis of the testimony subsequently, 10
 be offered in support of the propased
 increase.
 The figures offered today tended 10 prove that while the roads generally are enjoying an increased business the returns from operations continuously are decreasing until, as Vice Presi- dent W. c. Maxwell of the Wabash. declared: "Tae situation is becoming daily more serious. We are suffering from slow starvation"
 It was stated that the demands of the trageling and the shipping pub lie for improvement and extension of railroad facilities could be met by the roads only as they were enabled to obtain more money. The margin of profit, 1t was asserted, was so con 'tantly narrowing that it was becom- ng increasingly difficult to obtain tho necessary additional capital with which adequately to maintain. equip md operate the roads.
 Extensions were made of the meth 'ds pursued in making the five per ent increase which substantially, # vas developed, applies to all traffic xcept eastbound anthracite coal. On anthracite no increase was made be- ause of pending investigations by he interstate commerce commission nd the department of justice
 Interrogated by Chairman Clark as 0 the decreases of income and in- reases of express of the roads, Mir. Iaxwell said.
 The fact is that the margin being what we are taking in and waat we Ire paying out is steadily but surely growing narrower. This has been rue for several years and the situa- ion is becoming daily more serious. We are suffering from slow starva- ion"
 Mir Maxwell had explained the ne cessity confronting the roads of ob- taining new capital for the improve. ment and extension of the lines to ihSSt uShlaiuo Ol tue puDlIC. CommlS- sioner Clements inquired about the of the new capital, but the was not immediately available. Mir Maxwell promised, however, to furnish later details con cerning the roads financial transac- tions.
 Chairman F. Morris of the Central Freight Association submitted to the commission all elaborate statement of the changes in the rate structure in the central territory affected by the proposed advance. He explained the statement in detail, following closely the lines pursued by MT. Mccain.
 R. H. Large, general freight agent of the Pennsylvania railroad. explain ed that that system. in preparing the advanced tariffs, had preserved care fully the present rate relationship. both regional and destinational
 Assuming that profit on the trans portation of coal is 30, or s5 Or loo per cent" inquired counsel for the Pittsburg Coal Company, would you favor the addition of the proposed five per eent?"
 Yes" replied Mir. Large, because the returns on the traffic now are in- sufficient to meet our absolute needs. No such profit. however being made