The Washington herald., 1914-02-28

Other charge. without an Inceae % freight ra,e.
the rates VI Iay that this Beard believes TO be due
| at the present time TO the conductors and train.
men. which rates are embodied In the Award fol-
| lowing"
II is dificuh TO esrape the conciusion that s-u,
way must be found whereby the serious but divided
responsibility cf Governmental regulation Of rates
wages. and other niIWAy matters shall either bs
Concentrated under administrative branch Of
the GoHerument or the results o. legislative Acts
cndcrs Of Commissions. and awards q Arbitration
boards shall be reugnizod BY Rate Regulatory
C0snmisions. that regulation Uf Wasts rates and
other matters may continue without working a
manifest injustice to the railroads. and thoss VIVA
have invested in their serurities
The increase IN the total expenses for Rail
Operations for the fOrcgDinE reasons in greater
ratio than the increase in revenue. % that the
Net Revenue frum Rail Operations decreased
Ns6.2a notwithstanding the increased efficiency
and the larser Investment for RAilruad and
Equipment
The Net Railway Operating Revenue. as a whole.
decreased 20 psr crnt and adding thereto the
increAse In Railway Taxes Of SIssl15. the Railway
Operating Income decreased YJlOso or 1H
Ter cent. compared with the previous year
Dividend IncOme increased due principally 10 a
higher retrrn 0n the CAPITAL Stock uf the southern
Pacific Company. than on your holdings Of Baiti-
more and Ohio Railroad Company Common and
Preferred Stocks. which were exchanged therefor.
and TO which .efersnce Is hcrsafter made: also
to the larErr ncoms rccrired from y1ur holdings oS
Norfolk and wrsts'n RAILWAY Company securities,
lncone frnm sinking and Other Reserre Funds
increased sSs.3o. which Is c1rlsined By the fact
that only six months income included in this
item In 1872, undcT the interstate Commerce Com
mission classification which t--amr effective July
!. 1872 while isi3 contains q fan years inoone
Hire q EVrrmrut tcrpdit halancs) shows .
decrcsss of Sslces5 compared with the Previous
year, due to the n an increased number Of
charged therefor
Deductions Tor LEssc of O'lcr Roads decre.-ot
N2b,fS. due To lower Net ESrnincs at rnads
operated on that basis ni.udins the Cdmhria
and CleNrield Railway to March q 1918 when
1t was scpuircd by your COmrauy.
The Net lncnme for 1915 N. .SD.E5. a
decrease ot SS9.lI, compared with. 1912. from
which appropriations were made TO the Sinking
and other Reserve Funds: Additions and Better
ments were provided for Lines owned leased and
operated: cash dividends amounting tn sir PER
cent were paid: SOQoOO transferred to the
Reserve fer future Additions sud BCtteunents and
Sso.ecj credited tn Profit ard Los
In view II the steady iucruagr In exprnses taxes
and other ncCcssary cutlA,s which has caused
Continued decrease in the rrurn its Investment in
the Railroad and EIuiTment provided for pubnc
service 80 that the return Is inadequate. your Com
pany and other Eastern Railroads, in May 1919
petitioned the Interstate Commerce Commission TO
gTsnt permission 10 advance freight ntes on the
besis Of five per cent with reasonable minima and
with the notifications Necessary to prerTe existing
diferrntial relations lrtween communities thereby
sIfplemeniing the petition made in 1910 for in
erase in freight rates which the Commission decded
"ot % giant Duh uINu bho UNDERSTANDING mat
actual results should demonstrate that their forecast
II the future proved incorrect there might be grvnd
for asking further Consideration Of the subject The
Commission has instituted proceedings on its own
initiative TO determine whether the present rtes Of
transportation yield adequate revenues TO the com
mon carriers affected, and II not. what general
course the carriers pursue 20 meet the situation.
In order to develop the whole situation your Com
lany has in cooTcration with other carriers. sub
mitted extensive dsta relating 10 the investment in
Iaroad and eluiIInent earnings. cost Of operation.
income &C.. for the last sixteen years IN addition To
which the Uficiss II your Company prcrarcd to
shbmit hrther evidence in support Of the general
exhibits which will emphasize the necr<sty fer your