Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-04-02
DECISION ON RATES
Continued from Page One)

tCOnt1nUeQ from rage one)
will not be permitted to interfere fur
ther with the fundamental PROPOSE
ton of a rate increase.
1t is expected that the case then
may be submitted either on briefs,
which now are practically prepared
and without oral argument, or on
briefs with only short arguments.
Counsel for the railroads already have
indicated that they may waive right to
argue the case orally and submit it on
briefs. They have in some instances
expressed their willingness to stand
on the evidence adduced.
When the hearing was resumed today
before Chairman Harlan and Commits
sioners elements and McChord. President
Delano of the Monon explained in detail
from charts he had prepared the plight
in which the roads of Central Freight
Association territory today find them
selves"
President Smith of the New York Cen
trail described the financial situation on
that system. dwelling at some length on
the necessity with which, he said, the
system had. been confronted of laying
off longtime and experienced employees
and of curtailing expenditures in i'm
proyements.
"Since September, 1913" said President
Smith, 1--WE have been forced to reduce
our operating force by 1850 men. In
February of this year as compared with
February of last year we had 1900 less
men. Our gross revenues in 1913 were $40
100000 more than they were in 1910, yet
our net income was SO, 2S4,ooo less than it
was in 1910 before we had put the I'M
mense amount of new capital into the
property"
In response to an inquiry, President
Smith said that of the total of Sl59,0ooWO
new capital put into the system since 1910,
only SIG. coo, Oo0 had gone into the new ter
minal facilities and Grand Central sta
ton in New York City.
Statement Submitted
w. II. Williams, third vice president of
the Delaware &c Hudson Co., submitted
a statement of the general financial con-
ditions of the railways.
THE average amount annually expend-
ed by the railroads during the last six
years for additions and betterments," he
said, has been substantially s600,0O0,000;
and to earn 410 on this amount would
require additional receipts of s7s,544,061.
Notwithstanding the large capital ex-
penditures made by the railroads, the
economies and increased traffic resulting
therefrom have not been sufficient to Off
set the increased cost of wages, mate
rails, supplies and taxes, so that with a
substantial increase in their fixed charges
the railroads have had less amount
with which to meet such charges If the
railroads are to secure sufficient funds,
their credits must be improved, and this
can only be accomplished by large ex-
cess of current earnings over the current
cost of operation and taxes"
w. C. Wishart, statistician of the New
York Central, testified concerning "a rail-
roads cost of living
Rates of pay for transportation have
gone down sharply" he declared. The
consumer of today can secure more
transportation for a given amount of
funds that he ever could before and the
carrier continues to sell at declining
prices regardless of cost of production.
While transportation revenues per unit
OF trA1flc appear 10 nave sItiiieiLiSh Adh ~
constant, it is estimated that the actual
compensation to the carrier is 40 per cent.
below the level of that of 1896 The abil-
ity of a railroad to purchase labor, sup
plies and credit has been impaired by the
general increase in commodity prices in
the face of a fixed rate of return per unit
of service. While average revenues have
declined somewhat, wages hvae risen "a
per cent per unit of traffic, and other eX-
penses and taxes about II per cent. per
unit of traffic.
wages have risen as result OF aroi-
tration, mediation and the general de-
mand for higher pay in all branches of
industry. but stockholders have not re-
ceived relatively as high return as
they received in the late COS.
j. A. Wallis. general superintendent OF
motive power of the Pennsylvania, testi-
fed that that system was obliged to pay
far more for repairs, supplies and gen.
eral maintenance os equipment than ever
before.
successful peach grower, s. j. t.