The Washington herald., 1914-05-29
- y ~ = r. =
|Iy0BEW PROBES
into RAILWAYS
4. G. e. to Start Inquiry Into
B. & O. and the
c., H. & D.
REVELATIONS PROMISED
Announcement Means that Rate In
crease Decision VIII Be
Delayed.
REVELATIONS PROMISED

49,
| Two new moves against important rail-
road systems Of the United states carse
yesterdays
The Interstate Commerce Commission
announced that It win undertake an in
quIry into the financial relationship ex-
isting between the Baltimore and Ohio
and the Cincinnati. Hamilton and Dayton
Railway. In the Senate a resolution was
introduced by Senator Norris. Of Nebras-
ka, calling upon the Attorney General
to advise the Senate whether the New
York Central and Hudson River Railroad
and its subsidiaries are In an unlawful
combination In restraint Of trade. The
Norris resolution asks further. II the At
torney General answers in the afhrm-
ative. why he had not proceeded against
this system under the Sherman anti-trust
law to enforce a dissolution.
The conditions which the Norris rcsolu-
tion are aimed at involve the New York
centrars new scheme Of financing Its
properties. which contemplates the ANAL
gamation of the New York Central with
the Lake Shore and some other SUBJ
salaries. The Interstate Commerce Com.
mission recently investigated this plan.
In response to a Senate resolution, and
found that it seemed to be necessary to
accomplish the purposes that the Gen.
tral officials had in mind. While giving
the Central q clean bill Of health in most
respects. the Interstate Commerce Com
mission declined to express any opinion
as to whether or not the new plan would
constitute violation Of the Sherman
antitrust law. They held that this was
a matter for another department to pass
upon: hence, the Norris resolution CALI
ing upon the Attorney General for an
opinion.
Announcement . Surprise.
The Interstate Commerce Commission.
announcement in regard to the Baltimore
and Ohio is of more immediate impor-
tance. The commission announced that its
inquiry is to be conducted in connection
with the advanced rate case. Its obvi-
Gus purpose therefore is to ascertain
whether the relationship between the Bal
timore and Ohio and the Cincinnati.
Hamilton and Dayton has any bearing
upon the financial needs Of the former
road, as set forth in the advance rate
case. .
: The announcement of this bearing came
as surprise to persons who have been
following the commissions proceedings
on, the application Of the railroads for .
5 per cent freight increase It had been
expected that the next move by the
would be the handing down
Of decision: in fact, there have been
reports for a week or more that the
already had determined upon
its findings.
The hearing in regard to the Balti-
more and Ohio will be held today by
Chairman Harlan. 1t will be based on
charges made to the commission by
Fowler, of Illinois. Mr..
Fowler charges that the Baltimore and
Ohio Railroad, when IL took over the
came liable for obligations amounting
to 500, 900, and that this is one
Of the reasons why the Baltimore and
Ohio now needs increased revenues to
meet its expenses.
Fowler Predicted Revelations.
Mr.. Fowler has freely predicted that
an investigation into the business re-
lations between the Baltimore and
Ohio. Cincinnati. Hamilton and Day.
ton, and the Pere Marquette railroads,
through ]. p Morgan & Co.. would
yield interesting information. Mr..
Fowler pointed out that Poor's Manual
In 1896 estimated the value of the Gin !
cinnati, Hamilton and Dayton's total
securities at s21.ooo.ooo. with net earn
Ings for the preceding year of $780, |
BOO. In 1914 the same manual, accord |
ing to Mr.. Fowler, gave the Cincin-
natl, Hamilton and Dayton's securities
rs $4,000. 900. and the net earnings as
81. .ooo. 900.
The action of the compassion in start |
IS ou inns hfNtsd6dloii 70 tohcH hcIC
10 mean that the final decision in the
advanced rate case will not be handed |
iown until the latter part of June
Comes lrp Again Today.
The extent of the investigation will be !
by Chairman Harlan this
morning.
The Norris resolution went over under
point of order raised by Senator Reed, I
" Missouri, who declared that it was
If so much Importance, In his Judgment,
I should have the consideration of q /
of the Senate before being /
passed. Mr.. Norris consented to have
he resolution lay over for day. and Il
will come up in the morning hour" to-
lay.
Senator Norris Is author q the resolu-
ion that led to the New Haven In
7estigation.
GETTING READY FOR EXERCISES