The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1914-10-22
RAILWAYS SUBMIT
RAT RAISE PLEA
Eastern Roads Show Their
Earnings For 1914 Have
Decreased, While Ex-
penseS Increased.

Washington, Oct. 20.-Public hear
mss on the new application of eastern
railroads for increased freight rates,
which, they contend, are necessary be-
cause Of the Worldwide financial ex-
igency, due, in part, to the war, We're
begun here today by the Interstate
Commerce commission. The commits
SIGN is hearing argument only on is
sues which have arisen since its deci-
sion in July, which denied, absolutely,
increases east of Pittsburgh and Buff
falo, and granted increases west from
those points to the Mississippi river
COMMISSIONS Clements presided. The
TallroaG lines We're represented by their
principal executives. Individual ship
oppose further increases, We're repre-
scented by council. Among them was
Clifford Thorne, who led the OPPOSE
ton to the last application.
Today's hearing was given over to
a statement for the railroads. The
shippers and their representatives viii
be heard later. Daniel F. Willard,
president of the Baltimore & Ohio rail
road, making the opening statement
for the roads.
Mr.. Willard concluded his statement
by saying that "a grave emergency eX-
oeo Siu SiLll, SilpLIu IL appear at any
time that the emergency had passed,
the commission had poVrer to order any
reduction. He was of the opinion that
if such reductions were shown to be
warranted the railroads would not OPP
pose.
George Stewart Patterson. general
counsel for the Pennsylvania, asked
that Vice President Shriver. OF the
Baltimore & Ohio, be appointed to sub
nit data for the eastern railroads as
a whole to support Mr.. Willard's state
ment. Mr.. Shriver presented statistics
OF the condition of the rail
road ending June 80, which were not
available for the commissions conSid-
GRAFTON III the previous case. This syn
0pSls of his statement was presented
by Mr.. Shriver:
Operating revenues in 1914 were less
by S4S, 600, 900 than in 1913. although op-
Grating expenses Notwithstanding the
smaller amount of business handled
We're $22, O0O, 900 more than in the pre-
yious year. While the business han
lie IN 1914 was. excepting 1913. the
largest in Is years. the net operating
income was the smallest shown in n
years. Taxes increased s., 500, 600 in 1914
AN increase of 159 per cent.
For the PENNSYLVANIA. New York
Central and the Baltimore & Ohio. net
operating income was $41. 100000 less
than in 1913, and the lowest in 10 wears.
The divisions paid by these three svs-
tems We're the smallest in five years
and at he lowest average rate for 10
years.
In 1914 for the three systems the
sum available for interest, dividends
and surplus amounted to but "a ner
cent OF total capital obligations. a rate
much the lowest of any shown in the
preceding 16 years. Previous to 1914
the ratio did not fail below 5.67 per
cent
Louis D. Brandeis. counsel for the
commission asked Mr.. Shriver on cross
examination, if incursion Of the New
haven n Boston & Maine railroads
mad not accounted for 1000, 900 of the
$8,O0O.0O0 shown in the statement of
MI. Shrlver as inroads in capital to
meet dividend payments. Mr.. Shriver
admitted such was the case. Mr.. Bran
deis also brought out the fact that the
last 6 per cent dividend paid by the
Baltimore & Ohio, was paid despite an
actual deficit of $4,000, 600.
Clifford Thorne. representing the
railroad commission Of Iowa, Kansas.
Nebraska, North Dakota, Oklahoma.
Arkansas, Arizona, Idaho. Nevada, New
Mexico and Utah., as well as the Corn
Belt Meat Producers association. the
American Farmers Grain Dealers as
sociation; the Iowa State Manufacture
srs ASSOCIATION; the national council of
the Farmers Cooperate association
and the American National Live Stock
association. all of which have inter-
rened in protest against the granting OF
the in rates, began an exam
nation of witness to show there has
been no material increase in the cost of
railway supplies within the last two
years, n partly within the last two
months. He began with wages and
after considerable argument the wit
ness agreed to furnish figures on wages
and supplies which would afford :.
basis of comparison.