Evening journal., 1913-11-24
RAILROADS OF
EAST PRESENT
REASONS FOR
RATE BOOST
Say Increased COST Of Mainten-
ance Including Higher Sal
aries Have PinChed the
Corporations
BETTER SERVICE IF
INCREASE IS ALLOWED
Bv The rnited prese

By The United Press.
WASHINGTON, Nov 24.-Whether
the high cost Of living shall be further
boosted by increased freight rates
will be determined by hearings which
opened today, before the Interstate
Commerce Commission. This iuvesti-
CATION, with LOUIS d. Braudeis, Of
Boston, acting as attorney for the
commission, will determine whether
the forty-fiye roads east of the
Mississippi and north of the Ohio and
Potomac shall be allowed TO advance
their rates on an average Of FIVE per
cent.
Indications at the outset OF the in
quiry pointed TO a determination on
the part Of the Interstate Commerce
Commission To prevent such increases
by having Brandeis develop 4 method
OF retrenchment in railroad operating
expenses.
President Daniel willard. OF the
Baltimore and Ohio system. repre-
sented the Eastern roads today HIS
testimony. not under oath. declared
that the advances were absolutely es-
sential TO a reasonable profitable con-
duct of the lines. His evidence with
that Of President F. S. Delano. Of the
Wabash. and George Stuart Patter-
son. representing the Pennsylvania
system. will probably consume two
or three DAYS.
President Willard, spokesman for
for the forty-nine Eastern lines.
pleaded the pinch Of increased costs
as the reason for the railroads ad-
vances. He declared that while arhi-
tration and mediation had boosted
employees salaries and new safety
labor laws had increased expenses
enormously in recent years tho rail-
roads had not hcen permitted to
raise their rates 10 meet these higher
demands. Foreign nations had per-
mitted Il. he said.
The increases. he argued arc needed
10 furnish The public with the high
grade service " demands. prpperty in
Vcstmeut on the affected tines wa'
s6O0Oo0.on0 in tho last three years
Willard declared bnt fhc roads earne1
Si6.sil .s2l loss ia thc Scsr ending juno
30. 1918 than in thc year ending june
80 1917
The railroad president declared that
u
been TO check. il not altogether ~ STOP
the normal development Of railroad ia.
cilities
"Whlc the carriers fully recognize
and acknowledge their obligations ts
the public and arc alive TO the respon
eibilities imposed. they are helpless tc
fulfil these obligations" sail Willard
sunless the financial result Of ther
operation is such as to inspire the con
5idence Of private capital and encourage
the support OF private enterprise, anC
the result Of operation during the last
three years is not such as TO inspire
the one or encourage the other"
He declared that freight rates in ef
feet in 1910 have not been maintained
and preset tariffs are as a rule lowe
than they were then.
Frederick g. Delano, president and re
ceiver of the Wabash. speaking for tn
lines west Of Pittsburgh and Buffal
and east Of the Mississippi declarc
"The commerce. prosperity and develop
ment OF the whole territory would b
in jeopardy" ii the commission faIie'
to grant the increases.
Speakers before the commission 10
day besides Willard and Delano wer
George NJ. Shriyer, second vice presi
den, of the B. & o. W. c. Wishari
assistant TO the New York Central
president and c. ". Bunting comp
troiler Of the Pennsylvania system.
The hearing will adjourn tomorrow
night until the first OF the year whc
the interstate commerce commissio
will again have a full board,