Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-24

the railroads during the last three
years was not such as to inspire
confidence of private capital or en-
courage the support of private enter
prise.
1T is respectfully. submitted, he
continued, that there is at this time
no more important question before
| the people nor one the correct solu-
ton of which will do more to stimu-
late healthy commercial activity and
promote industrial growth.
PROBLEM Not One of Dividends"
1T is a mistake to think that the
problem is merely a question of divi-
dends to railroad stockholders, al
though that feature is, of course, in
yolved. The problem in a broad and
true sense affects all interests, and
the outcome Of this particular case
whichever way 1t Is decided-will
mark an epoch, because it will, in
effect, verify largely determine
whether we shall, as in the past, con-
tinue to look to private capital and
private enterprise for our transpor-
tation requirements, or be compelled
finally to accept the only alternative
possible"
In presenting the facts upon which
the railroads rely to prove the neces-
sity for an increase in rates, Mr..
Willard asserted that during the past
three years the railroads in the ter
ritory affected had spent in property
investment some 5000, 900, 900. or at the
rate of 5000, 900 per year Never
theless, he added, because of the fact
that operating expenses had increased
faster than operating revenues these
railroads earned in the year ending
June 80, 1913, less by 1851, 321 than
for the year ending June 80, 1910.
Earned Nothing ON New Capital.
"These companies" continued Mr..
Willard, apparently not only failed
to earn any return whatever on the
new capital invested, but saved even
less from. gross earnings, as returned
upon the original property invest
ment, than they were able to show
before this large additional expendi-
ture was made
In these three years the Pennsyl-
vania, New York Central and Balti-
more and Ohio systems increased
their property investment over $422,-
537, 900, according to Mr.. Wizards fig
ures. While their combined gross
earnings increased sos, 000, 900, the net
operating income was $S573, 507 less
in 1918 than in 1910. Notwithstanding
the expenditure of 422,000000 for i'm
provements.
Burdens Added by Legislation.
Mr.. Willard also called attention
to increases in wages, taxes, bur
dens imposed by legislative enact
ments' such as extra crews, liability
and compensation acts, and other
conditions. He called attention to the
fact that since 1910 wage payments
by the railroads affected had greatly
ncreased-largely as a result of me-
diation 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 ex-
penses of these carriers more than
s4,000000 per annum.
The. railroads affected paid $54, 494,-
I'll In the shape of taxes for 1918, this
being $11,579, 1877 more than in 1910, he
asserted. The three larger railroad
systems paid in taxes $31, 218,000 in
1918, this being $7.S54,000 more than
for 1910
Mr.. Delanos statement, in part. was
as follows:
This great network of railroads
covering the entire territory. during
tho year ending June 80, 1910, earned
239 million dollars, and during the
year ending June 30, 1918, 275 million
dollars, or a gross increase of about
SO million dollars; but in the former
year the operating expenses and taxes
were 1872 million dollars. and in the