The Birmingham age-herald., 1913-07-06

! tween the men at the head OF the two
| competing systems have been entirely
| free from unpleasant features.
BY virtue of having two (and at one
| time three) directors the Baltimore
| and Ohio board Pennsylvania officials
| knew all the time what its competitor
was doing, but never was a voice or hand
| raised in either counsel or dictation. The
/ Baltimore and Ohio went ahead making
| it's own plans and carrying them out re-
gardless of the fact that a powerful
rival was interested in the property and
| that the larger of the two systems would
naturally suffer somewhat from the ag-
gressive expansion of its side partner
| under the Willard management. Rela-
tions, however, continued pleasant
| throughout. They cannot be more so un-
| der the changed situation.
| The one thing that has been a thorn in
Pennsylvania flesh was the fact that it's
ownership Of a huge block of Baltimore
and Ohio stock was in admitted violation
] of the Sherman law, which is in explicit
| prohibition of ownership by one railroad
| in the stock of II competitor. Original
ownership was acquired as one of the fac
| tors in the settlement of a traffic comph-
cation having New York as storm CEN
tre. The move was at the time of vital
| Importance for the maintenance of peace
among several lines east and west. Penn
sylvania has never been comfortable un-
der the arrangement, however, and will oe
| only too glad to escape the ever pending
possibility Of a lawsuit to compel the sale
of its Baltimore and Ohio holdings. Ev-
| erything is now lovely. 1t may be men,
| toned incidentally that the transfer OF
Baltimore and Ohio stock into the Union
| Pacific treasury will make no difference
whatever in the freight between the east
| end west trunk lines and their feeders will
go on as before. They were founded on
lyears of experience in the interchange of
| business. Present arrangements are rec
| ognized as equitable and they will not be
disturbed. This statement may be said to
| be inspired" As market factor now
| or hereafter that issue may be dismissed.
| 1t will not figure.
Close of Fiscal Year
| With practically all the railroads and a
! great majority of the industrials a new
/ fiscal year began on Tuesday of this week
July 1. In the matter of traffic-carricd
and in gross earnings the railroads had a
banner year. INF ,rtunately, however op-
Grating expenses underwent a sensational
advance at lhe same time and whatever of
profit there would have been in this en-
| larged volume of business went largely
| into increased expenses of one sort or
another. Several of the leading systems
| both east and west have records of to
, 10 per cent increase in gross revenues and
almost no enlargement in net Some of
| the labor leaders would have 1t appear
| that this increase in the cost of operation
| is largely forced for effect on the in
terstate commerce commission both with
regard to freight rates and future at
| tempts for more wages.
| This claim is vigorously denied by rail-
roads through their officials and the issue
may be brought up next fall when the
| rate hearings are heard by the commits
sion. AS a present proof that the mathe-
matics are ''on the level' the fact is di-
| lated on that railroads ind it impossible
| to borrow anywhere near the amount of
money they want for needed improve
ments and for new and badly needed
equipment. Capital is very cold pend
| ing peaceful adjustment of many po-
litical and wage issues which now enter
SO largely into popular and financial dis
| cussion. Bearing most intimately upon
the broad question of money interna-
| tional correspondents say that Germany
| is now borrower instead of lender. and
while there is plenty of loose capital in
both Paris and London, the holders
| thereof are Tightening their grip thereon.
they want disturbances to cease in the
| United States before risking their money
| In railroad end Industrial expansion on
| this side of the Atlantic. The really, big
people In our own financial area are much
| of the same mind.
Time TO Compile Statistics
The deferring of the railroad rate hear
| ings until next fall will give ample time
for the compilation of statistics covering
the fiscal year of 1923 and give the i,i-
terstate commerce commission clear
view of every point upon which knowledge
| is sought The railroads are already al
work and the greatest array of current
statistics on transportation ever complied
Will be the result The interstate com
merce commission will have to hire a new
building to hold the accumulation If the
exhibit does not ovewhelm tho commits
sion, then there is no virtue in "fggers. .
There has been almost no change in SEN
timent with regard to the merits of the
demands of the railroads Tor the right to
impose per cent advance in rates The
press, which may be assumed to represent
popular opinion, is almost unanimously in
laVor or giving the railroads what thev
want. Opposition is scattered and NOT
particularly influential. The commission
Is believed to be entirely open mindedr
on the issue and whatever the finding NAV
be 1T will probably be accepted as fair,
Members of the commission have said tbat
no prejudice exists in that BODY against
the railroads, and that whenever thev
can show real need for an fncrea sed ,,et
income which can only be provided In tba :
way, an advance will be granted
| For all practical purposes the stock
market has enjoyed week S vaca tion IN
| stead OF two days-Friday and Saturday.
~ NM