New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-25

VIII De titanic STRUGGLE between the IN
perts representing each side
The arguments OF Messrs Willard and
| Delano were to the effect that IL was alb
solutely necessary for the commission to
allow the proposed increase. approximate
ing per cent, II the railroad systems OF
the country were to obtain the capital 10
provide the needed facilities and furnish
the high class service demanded by the
commission and the public
Great Growth Of Expenses.
Mr.. Willard told the commission that
during the last three years the railroads
I'm the official classification territory had
expended tGOO.OOO.OOO in property Invest
ment. lie urged that because the oper-
ating expenses had increased faster than
the operating revenues these railroads
earned i'm the year ending June 20. 1913.
Sl63ll ,32l less than for the year ending
June 80. 1910
Mr.. Willard called attention To the fact
that since 1910 wage payments by the
railroads affected had greatly increased
largely as a result of mediation and
arbitration proceedings and that the
award Just announced by the arbilrators
would give the conductors and trainmen
Sc 10000 per annum additional The ef-
feet Of the so-called full crew laws alone
had been To increase the expenses Of these
carriers more than 10000 per annum.
The railroads affected paid Sjiisi,ld IN
the shape Of taxes for 1913. this being
ST 579,lS7 more than. for 1910 The three
larger railroad systems paid Ia taxes
81 2l6.ODj I'm 1913. this being S.Si.001 more
than for 1910
In addition To the actual reduction in
rates" continued Mr.. Willard. the con
tnuous decline in the value. that is to
say, the purchasing power Of money for
a number Of years past has had the effect
of diminishing still further the burden Of
the rate to the shipper, while at the
same time increasing the burden Of the
carrier. This influence. reflected In the
higher cost Of operations. has been world
wide, and has been recognized by rate
advances recently made in England. Italy,
Switzerland. Belgium. Denmark Russia.
Austria Hungary and other countries"
Decrease in Revenue.
Mr. Delano argued with reference TO
group Of railroads with an aggregate
mileage Of 23.l67 miles. among which were
the Big Four system. the Nandalia, the
Nickel Plate the Chicago & Eastern Hi
nois. Grand Trunk Western. Grand Rap
ids & Indiana. Pere Marquette. Chicago,
Hamilton & Dayton. Illinois Central, Chi
cago e. Alton. and Wabash Referring 10
this group Mr. Delano said:
- 10 10 inf al in 10
termuing the reasonabeness of rates.
the prosperity. commerce and develop
ment Of the whole territory will be placed
I'm jeopardy.
This great network of railroads during
the year ended June 30. 1910. earned s239
900 600, and during the year ended June
90, 1913, $275,0O00 coo, or a gross increase OF
about 500, 600 900: but in the former year
the operating expenses and taxes were
/ 1882, 900, and in the latter year 1927 600,
co. or an increase In expenses Of about
si5OOO,OOO resulting in a decrease in net
revenues. after payment Of taxes Of over
80, 900 900. and in net corporate revenue OF
more than 100000.
These same roads during the year end
ed June 80 1905 (Which will be remem-
| pered as a panic year. earned 100000
| and during the year ended June 80 1913
$275, coo 600. or an increase Of 100000, but
| during the year ended June 80 1905. the
| operating EXPENSES and taxes were $780,
| 100000, and during the year ended June &c.
1912 1927, 100000. an increase of about
| $50, 10000
Now, despite the fact that during that
same period more than $l75,00OCO0 was put
into additions and betterments. the net
| income. after deductng operating ex-
penses and taxes. showed an increase OF
only $4,000. while the net corporate in
come actually decreased about 100000"
Other Figures Submitted.
Figures submitted by Vice-President
Shrver Of the Baltimore & Ohio for forty
nine railroads in the territory involved
showed that the net operating income for
1913 had actually decreased more than
| il4,GO,c0c. while operating expenses and
taxes had increased sol, 600 since 1910
Another table Conbinipo Of