The Washington times., 1913-11-25
HEAD Of WABASH
TELLS OF RATES
W. c. Maxwell Produces Data
That Concerns Thirty-Eight
Railroad Companies.
continued from First Page


president Of the New York Central sys
tenn. and ~. H. Harris. general coun.
sci; c. +. Daley, vice president; A. IL,
Smith. second vice president, ard o. f,
Butterfeld. assistant general solicitor;
President Willard of the Baltimore and
Ohio. and George NJ. Schrver. second
vice president OF that road, II. l.. Bond,
general counsel. and J. +. Baumgarten.
George w. Stevans, president OF the
Chesapeake and Ohio; George +.
Brownell. vice president and general
manager of the Erie and l.. II. Cald-
well, president of the Wells Fargo En-
press Company.
An interesting sidelight on the hear
ing was given, when Louis ID. Brandeis,
representative of the people. privately
declared that he would not become an
interstate Commerce Commissioner, If
one of the conimissionerships was ten
tered to him.
Representatives of the big railroads
interests declared that they were more
than pleased with the selection OF Bran
deis as the peoples counsel"
We are assured that Brandeis will
bring out the worst that can be found.
said one of these officials, ''and we De-
liere that even with his searching in
restiSation the commission must decide
that the increases are essential to pro-
per railroading in this country
The economists called by the rail-
roads are prepared to testify that in
their opinion the requested increases
are absolutely necessary for the main
tenarce of proper railway service. Piles
OF figures high enough to even stagge:
the commission are to be presented
The men who are to be heard are
Thomas r. Woodlock, editor of the
Wall Street Journal; Frank HaiSn
Dixon, professor of railway economies
at Dartmouth, and c. NJ. Acworth. OF
London.
The examination of Mr.. Maxwell, who
carried the burden this morning, was
conducted by j. l.. Minnis, of the Wa
bash.
Mr.. Maxwell produced elaborate Sta
ustical data concerning thirty-eig hit
railroad companies. with 1857 miles of
line, the main features of which may
be thus summarized:
Results of operations for these roads
all roads in the Central Freight As
sociation territors'-whIe showing Ia
1913 gross increase in operating rev.
enues of S7S0O0000, more than for 1910.
nevertheless, after paying operating
expenses and taxes, suffered a loss Of
Sl2,000,0o0 in operating income.
This result was due to an increase in
the ratio of operating expenses and
taxes to grass as between 1910 and 1915
from y per cent to 49, per cent. This
showing was made. despite the fact
that large sums of new capital were
invested in additions and betterments.
Besides the loss in net revenue for
the year ended June %, 1918, as COM
pared with 1919, the figures for these
same thirty-iive roads for the three
months of July. August, and September,
1913, show a decrease in net operating
earnings of s6,931.35S, or approximately
20 per cent. Il
In addition othe tables covering fig
ures for all the roads in this territory,
Mr.. Maxwell directed special attention
to the condition of special group OF
roads which. as claimed by +. a. De-
lano in his opening statement the
previous day. were more particularly
representative of the whole situation
in Central Freight Association territory.
This group embraces twenty-eight roads.
cent of the entire mileage in the ter
ritory and including such important
lines as the Big Four System. Vandalia
Chicago and Eastern Illinois. Grand
Trunk Western. Grand Rapids, Illinois
Central. Chicago and Alton, and Wabash
railroads.
Net Gain $4,000.
In 1913 roads in this group earned
So, ,0O0,00O, more than in 1908. which is
known as the panic year. and operating
expenses and taxes were So. 90 900 more
Net earnings. after paying expenses and
taxes, were only sSlI 900 more than in
1908.
The net corporate income of these
properties was actually 100000 less
than in 1908. although during this five
year period $3.50 900 900 new capital was
put into these properties.
In 1919 the roads in this group earned
SS6.o00.O00 more than in 1910: operating
expenses and taxes were s+l, ,0OD 600 more
than in 1910 and tine net, after operating
expenses and taxes. decreased 81. 800 200.
The corporate income decreased almost
S17.OO0.c1
II in 1918 the railroads IT, this CrOup
had been able to operate at the sam.
ratio as in 1910 their net income. aftcr
payin" taxes, would have been almost
SIS, 100000 greater than IL WIS. The in
crease in cost is largely in two items.
TRANSPORTATION and maintenance OF
equipment.
George NJ. Shriver. vice-prcsidcnt of
the Il. and O.. followed Mr. Maxwell.
giving facts and figures on income and
operating expenses III response to qucS-