The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-11-24
BEES FOR MERCY
Daniel willard, President Of
the Baltimore 3 Ohio,
Argues tho Case of the Ran.
ways Before the /. C.. C.
INCREASED COST OF uMne
Has Affected Transportation
Lines Like Other Enterprises

Lines Like Other Enterprises
But They Have Not Been Al.
lowed to Adjust Charges.
Washington, Nov. A-Daniel VII.
lard. president Of the Baltimore 4 Ohio.
Frederic A. Delano. president Of the
wabash and George Stuart Patterson.
general solicitor Of the Pennsylvania
merce commission to argue for author
lty 70 increase rates ON all Glasses Of
freight tranic approximately per cent
east OF the Mississippi and north OF the
Onao and Potomac rivers Through the
proposed increased rates ara asked BY
the railroads In the territory east Of
the Mississippi and north Of the Ohio
ana Potomac rivers. the hearing 10 OF
the utmost Importance to all the rail-
roads OF the United States for should
the commission grant the authority for
the increase 1t might extend the auth
| orlty TO the other railroads Of the coun-
uy. The commission win inquire
wnetner present rates yield adequats
revenues to the common carriers ana
mucn testimony viii be taken.
Oniy the opening arguments BIZ the
| representatives Of railroads are to b
heard today.
AT the opening Of the hearing appear
comes., ces were entered by OFFICIALS and
1o0 representatives Of the raiIroa Al ana
OF Shippers organizations were preaenf.
! Louis d. Brandeis Of Boston and Frank
Lyon OF this city appeared az council
.or tne commission in opposition to the
ginning the hearing, Chairman C,.rr
pano high tribute to the late John al.
Marble, member Of the commisaion who
died last week, ~
Washington. Nov. 2l.-rhat tia ran.
roads OF the country have felt tha hnr-
oen OF the increased cost Of living. like
al other enterprises. ''but unlike aIl
otners. nave not been permitted 80 fnr
20 20 aa5ust their charges in recognition
41 tne burden. was the declaration Of
Daniel Willard, president OF the BaIti-
more q Ohio railroad, arguing TO-DAY
before the interstate commerce corn.
misslon e; Tor authority to increase
In the territory of the Mississinni ana
north OF the Ohio ana Potomac river.
Refefringsto the refusal OF tha co,n-
mission In 1910 to grant . 10 per cent.
increase ana the promise to reinvesti.
gate the rate question In the future
should conditions warrant II. Mr.. vv1,.
lard asserted that operation Of the rail-.
roads during the last three yeara waa
not such as to inspire conffdence or nri-
vate capital or encourage tho support
OF private enterprise. TT II resnecf-
fully submitted he continued. .fhst
there fs at this time no more importanf
question before the people nor one the
correct solution Of which will do more
70 sumulate healthy commercial actlv-
ity ana promote industrial Growth
Tt IL a mistake to think that tb~
problem u merely . question Of divi-
oends to the railroad stockholdern. nj.
though that feature IL, OF course' in.
vowed. The problem affects all inter-
case-whichever way It IL docfded-viIi
mark an epoch, because It win. in A.
fect, very largely determine whethe-
we snai! as In the past continue to look
to private capital and private enterprise
Tor our transportation requirements or
be compelled finally to accept the ONLY
alternative possible"
Spend Moro; Earn Len.
In pressing the facts upon vhsrv,
the railroad relies to prove the neces-
sity for an increase in rates, Mr.. WfI-
lard asserted that during the ns.<
three years the railroads in the terri
tory affected had spent in property
investment Of some $500, 900, 900. or st
the rate OF $2o0.000.ooo per year.
Nevertheless. he added, because Of
the fact that the operating expenses
had increased faster than operating
revenues, those railroads earned IN
the year ended June 80, 1913. lesu bv
$1s.311,321 than for the year ended
June 80. 1910.
These companies" continued Mr..
Willard. apparently not only failed
| to earn any return whatever upon the
new capital invested but saved even
less from gross earnings az return
upon the original property invest
ment, than they were able to show
I>ol 1a&A lat
ture was made.''
i In these three years the Pennsyl-
vania, New York Central and Baiti-
more and Ohio systems increased
their property investment over 3lz1..
537, 900, according to Mr.. Willard's
figures While their combined groGD
earnings increased 100000 the
net operating income was $S,57s,607
less in 1913 than In 1910, notwfth-
standing the expenditure Of $42z,OOO.-
900 for improvements.
i MI. willard also called attention to
increases in wages, taxes, burdens
imposed by legislative enactments,'
such as extra crews, LIABILITY ana
compensation acts and other condi-
tions. He called attention to the fact
that since 1910 wage payments by the
railroads affected had greatly in
creased, largely az q result Of media
ton and arbitration proceedings-and
that the award just announced by the
arbitrators would give the conductors
and trainmen 100000 per annum
additional The effect Of the so-called
full crew laws alone, he said. had
been to increase the expenses Of these
carriers more than -. 600. 900 per an
mum.
il DelanOas Aexumenf.
Il Arguing ON behalf Of the Central
Freight association line which takes In
lines from Buffalo and PittSburg WeGt
} to st. Louis, Frederic Delano 01 CHI
4 ca9o uresif3enf Of the Wahnah .V,a1l.