The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-20
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Business Depression and
European War Lead to
Shrinkage in Revenues.
ADVANCE OF 5 PER CENT
IS REQUESTED OF i. C. C.
President Willard, Of the B. & O.,
h Is Principal Wit
ness.
SAYS SITUATION is CRITICAL
Clifford Tlorne, Representing Many
Interests, Appears I'm
SAYS SITUATION is CRITICAL
Clifford Thorne, Representing Many
Interests, Appears in
Opposition.

WASHINGTON. October 19.-Business
depression and the European war to-
day were assigned ns reasons why East
ern railroads should have at least n
q 0 per cent Increase In freight rates by
representatives of the systems appear
Ing before the Interstate Commerce
8 Commission. 1t was asserted that these
!. two conditions had led to a shrinkage
of more than s7s.000.0O0 In the annual
net revenues of thirty-eig Eastern
l5 roads. operating more than $4,000 miles
of railway.
Daniel Z. Willard, president of the
Baltimore and Ohio. and head OF the
conference OF presidents OF the lines I'm
volyed. was the principal witness. He
s was supported by mass OF statistics
presented by pice-Prcsident Shriver. of
the same line. Further evidence will
be submitted tomorrow.
In opposition to the plea of the car
riers. Clifford Thorne appeared for
public service corporations OF several
Middle Western and Intermountain
States and also for shippers organixa
tfons In the region affected. Mr.. Thorne
declared his purpose nnd the desire of
the shippers Was that the public's side
of the question should be fully brought
out.
& BRANDEIS AssAILs
WILLARDis POSITION
Louis Brandeis. counsel for the COM
miasfon, assniled Mr.. Willartl's posi-
tion In cross ss-examlnation Calling at
tention to the fact that the Baltimore
and Ohio this year had declared it's
regular per cent dividend despite an
actual deficit of moro. than ss.oo0000
in net revenues. Mr.. Brandeis Indicated
the affairs OF other lines woui,. sa!..ni-
larly be taken up later
AIr. Willard said tho dividend had
been maintained at Glper cent this year
at his Recommendation. lie, declared he
believed 1t Justified by the fact that
the road had $4,000. 600 In surplus, and
II wns necessary to maintain the credit
of&the line 4 81 q = q ssii 81 j
Air. Brandeis took exception to the
statement OF the baltimore and oii6
surplus. He Insisted that 323oO0.000
Of the s32.000,o00 was represented In
the lines Investment In securities or
tie CINCINNATI. Hamilton and Dayton
Railroad. now In the hands of u re-
ceivcr. Mr. willard admitted this. but
said the purchase of that road was not
nm issue In the present hearing.
NOTHING NEW SINCE
C.C!s RECENT RULING
Mr.. Brandeis asserted the statement
OF the railroads had disclosed SO far
nothing originating since the commits
sions recent ruling rejecting the
Eastern lines previous plea for a 5
per cent advance In rates. In reopen
ing the case the commission spe,
ciflcally limited II to matters arising
since that time Mr.. Brandeis said
the decision had forecast falling off
in revenue of s75.Oo0.000 for the period
= embraced, and tho companys state-
&sment of s76,0o0,000 shrinkage only
served to confirm that estimate.
"The commission also forecast i'm
provement in business conditions." said
Mr.. Willard, whereas there actually
has been retrogression."
in
followed the suggestions OF the COM
mission In making some increases In
passenger rates. both on mileage books
i and straight fares. TO the Baltimore
and Ohio. he thought 1t likely the In
M creases would aggregate In time $780,
900 annually on the mileage book. but
IL was impossible to say how much
might be realized from advances on
other fares.
do you know of any companies
railroads or other corporations-that
have been able to market their, securi-
ties at better rate than the Balti-
more and ohio?" inquired Mr.. Thorne.
Personally. l do not" replied Mr..
Willard. I'VE sold our securities at
fairly reasonable rate"
INCREASE IN LABOR
COST SINCE 1912
Can you mention any increase in
labor cost since 1922" pursued AR.
Thornc.
yes" said Mr.. willard. 1--WE have
advanced our laborers engaged on
maintenance work in the aggregate
between 100000 and 100000 a year"
Mr.. willard said he did not share the
commissions view that coal rates
ought not to be increased. I'VE need
additional revenue" said he. "and the
best and fairest way would be to ad-
vance all rates, including those on
coal"
care these increases asked for to
establish credit or to- obtain money TO
meet obligations?" asked Commissioner
K Clements,
Both, sln measure" said Mr..
Willard. "Fhe Baltimore and Ohio Is
well worth its outstanding. obligations
and much more, but our returns have
been small. We have put sS0,O0o.00O
into the property in the last two or.
three years-S35, 100000 In short term
h notes Conservatively it will require
js15.000,000 q year for many years."
Questioning Mr.. Shriver. Mr.. Brandeis
drew out Il statement that the ratio
{. of operating expense per mile had de-
creased In 1914 from the 1918 figure.
began cross-examination, tending to
a show that the cost of railway supplies,
With the exception of coal. was lower
this year than in preceding years.
@The needs OF the carriers are press
ing and Immediate. Mr. Willard de-
clared. in his opening statement, .the
actual situation has become extremely
critlcal@ E
ROADS SEEKING Flat }i
q q s S PER CENT INCREASE
sfa The roads are seeking fiat increase
Of s. per cent In freight rates through-
sf out tho territory. east OF the AIissls-,
s:sippi and north Of the Ohio and Poto-
mao Rivers. .5s Z u q. {
Mr.. Willard called attention to the
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