Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-11-25
RAILROADS AGREE
FOR HIGHER Rates
EARNINGs NOT COMMENSURATE
WITH INCREASED COST
or OPERATING.
WANT s PER Cent increase
Present Their Figures for Increased
freight Rate TO Interstate Com
mcrCe Commission.

WASHINGTON, Nov 24-That tho
railroad earnings are nol commensu-
rate with the increased cost Of opera
ton, higher taxes and wages and ad-
dtions to equipment necessary TO
meet the commercial demands OF the
country. was submitted today to the
Interstate commerce commission by
representatives Of the railroads argu-
ing for a general increase Of freight
rates
The claim filed by railroads operat-
ing east Of the Mississippi and north
of The Ohio and Potomac rivers was
upheld in preliminary outline of
the railroad situation by Daniel Will
lard. president Of the Baltimore &
Ohio railroad, representing for the oc-
casion the eastern roads, and Fred
erick A. Delano president of the Wa
bash railroad, on behalf of the Cen
tral Traffic association. Statistics tend
ing to show the curtailment of earn
ings as compared to increased costs
we're submitted by an accounting com
nlittee composed OF G. NJ. Hunter,
comptroller of the Pennsylvania rail
road; w. G. Wishart, statlstician OF
the New York Central lines; W. II.
williams, third vice president of the
Delaware and Hudson company; c. +.
era wford. comptroller of the Erie
railroad and George NJ. Shriver, sec
s.f a n1n
a Ohio railroad.
President willard, in an opening
statement, asserted that railroads in
the territory concerned had eXpend-
ed in property investments in the last
three years S60O,000,000 and that IN
the year 1918 the earnings were SIG
S1f 321 less than for the year 1910.
He argued that the > per cent in
crease applied for was not as much as
railroads we're entitled to and in this
he was supported by President De-
lano. who argued for the railroads in
central territory and urged that In
fixing rates the commission should re-
gard no particular territory
Figures submitted by Shriver for
a. railroads in the territory involved,
showed that the net operating in
come for 1918 had actually decreased
more than $4,000, while operating
expenses aud taxes had increased
$4,000. 900 since 1910. Another table
combining the interests of the New
York Central, Pennsylvania and Bal
timore & Ohio systems, showed that
the net operating income had de-
creased S,3S0.7lO since 1910. II was
also shown that in this period the
property investment for these three
roads had increased 5160 per cent;
gross earnings 63.S5 per cent; while
the net operating income had increas-
ed only $3.50 per cent.
G. NJ. Bunting Of the Pennsylvania
tetified that the return on investment
o. that system had shown a declining
tendency since 1908 and a steady de-
cline since 1910.
Between the years 1910 and 1913,
said he. there was an increase of
S2G1,1S6,919 in the property invest
ment. and a decrease I'm the net op-
Grating income of S11,4S5,5l1. In
other words. the Pennsylvania was
s1l.4S5.511 short OF even receiving
one cent dullNlOHdl i'ihlh VII 10 -
largcd investment. The percentage of
return on property investment in
1903 was 1.49 per cent, while in 1913
it had fallen to 54S per sent
The amount of wages paid CON
tinued Mr. Bunting, has increased
about S36.OO0.00 during the period
1910 to 1913, approximately $l5.-
900 O0O of which is due to increased
rates of pay. In addition, large ex-
pendtures had to be made for more
substantial and heavier equipment,
higher standard of road bed and
more modern interlocking. Taxes
have increased si,079,779 as between
1910 and 1913.
Summing up the operations, we
have. comparing 1913 with 1910, an
increase in tonnage, but decrease in
the average revenue per ton mile, an
increase in operating revenues of 1903
per cent an increase Of 23.13 per
cent in operating expenses, an in
crease OF 1853 per cent in taxes and
a decrease OF 1913 per cent in net
operating income, with an increase
of 1856 per cent In the property in
Vestment account
Even If the total freight revenues
of the Pennsylvania system in 1913
had been greater by per cent, the
return from operations upon the prop
ery investment would have been GAP
per cent. or only about one per cent
greater than the percentage actually
realized"
". D Wishart. of the New York
Central. said that system since June
so, 1910, had added s159.O00.oo0 to
the property which 1t devotes to pub
lie use.
Tine year 1919 shows large In
creasein operating revenues. 1915
per cen. over 1910; but operating ex-
penses increased 23.5s per cent and
taxes 32.2s per cent. leaving the in
come only i.sl per cent greater than
a. uaa in 1910