The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1914-05-01
and practically to their full

greatest, and practically to their full
capacity.
ITO justify the outlay required to
provide the facilities, the net revenues
resulting from such use should have
exceeded those OF any prior year
should have been sufficient not only
to pay the charges on the additional
property investment for year such
as 1913, but to provide money to pay
those charges during lean years. e. G.,
1914, when the facilities are not fully
used.
The year 1910 is that of the pre-
ceding five years wherein the then IA
cilities of the carriers were fully used,
and Is, therefore, the year properly
comparable with 1918.
When comparison of 1913 with
1910 shows thatt, despite the expen-
dtture of over $3.50, 100000 on prop
erty and an Increased use yielding
$1s6, 775,000 increased operating rev
enues, the net operating income de-
creased $16,S11,00O; then, that COM
parison, the carriers urge, does prove
the inadequacy of their revenues and
that the results so shown are not
such as to fairly justify the expendi-
ture of additional capital for the fur
Their provision Of similar facilities.
1T Is an absolutely new thing in the
history of American railroading for a
year like 1913, or a period like 1910
1913, when traffic was the largest
eevr recorded for a similar period of
time, to show the position OF the own
ers of the property to be worse off
than any previous year or periods.
1T is strong and conclusive evidence
that some change has taken place in
conditions. nor is it difficult to see
what this change Is, and what has
brought 1t about. It will be disclosed
by the collateral lines OF inquiry;
namely, increased cost of operation,
and Increased cost and dificuly of
securing new capital.
There has been steady increase
In, transportation, maintenance of way
and maintenance Of equipment ex-
penses, which are continuing in char
acter, and the full effect of which Is
just beginning TO be felt.
Operating revenues are inadequate
to keep pace with the expenses, and
accordingly the money expended in
PROCURING facilities has earned an in
adequate return since 1908, and no
return since 1910.
The effect of these things Is that
at a time when the business OF the
carriers as largest In volume, and at a
time when their investments and cap-
ital obligations are the largest, and
their plan and equipment more COM
,plete and efficient, the carriers find
themselves face to face with q declin-
ing net operating Income.
THE result OF this tendency toward
diminishing net returns will be to
check. II not altogether stop, the NOR
NAL development of railroad facilities
IN this territory. In the last ten years
they have been forced to spend $780,
100000 a year, and an equal, II not
a greater, amount will be necessary
for the future II the railroads are to
properly handle the business OF the
country.
"The question is one not merely of
railroad dividends. though that Is a
question of vital importance, but one
OF the interests OF the general public
in seeingbhaA the railroads are main
tanned IN q nigh state Of efficiency,
for. as Mr.. Prouty said In the 1910
case:
esq. therefore. We are to rely in
4he future as we have IN the past upon
private enterprise and private capital
Tor otir railway transpo lion, the re-
II x &. +