Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-04-02
COMMISSIONER THoRNE PUTS
RAILROAD PRESIDENT IN
HOLE At HEARING.
NEW YORK CENTRAL HEAD
pIsPRovEs OWN Statement
Forced to Admit Business, Revenues
and Earnings Of Road Highest in
Five Years Except in 1s1o-comnis.
sion Indicates Request For Rate In.
crease Will Be Refused.

Washington, April 2-The railroads
east of the Mississippi will not get the
can be given as forecast Of the de-
cision Of the interstate commerce COM
mission, which is to be issued within a
month, much earlier than had been
expected.
The fact the commission is opposed to
the raise was made plain when Chair
Chord and Clements severely cross
examined President Smith of the New
York Central on his statement that the
roads are going to the devil as fast
as they can"
This proceeding started last year.
Commissioner Harlan said, and on
your own figures your percentages are
better than ever before, including all
phases of the situation. These figures
are the final financial results OF the
enterprise, and for that year 1t is bet
ter than 1t ever has been. Now. I ask
you again what you find alarming in
that, or what evidences you find in
your own exhibits that are alarming"
Rebukes Smith for Statement.
Commissioner McChord followed this
up by reprimanding Mr.. Smith for the
manner in which the railroads have
informed the country the bottom has
dropped out of their credit.
DO You think this has something to
do with 1.-THE proclamation from the
house tops that there is crisis here;
that things have gone 70 the devil
and that the bottom has dropped OUT
| Commissioner McChord said.
Commissioner Clements said:
Mr.. Smith, you used rather an e1
pressve remark awhile ago with those
figures before you; that the practica
outcome was that YOU were going u
/ the devil. Now, using your expression
YOU are little further from him thar
you We're ten years ago
Thorne Forces Admissions.
The three commissi oners took hant
I in examining Mr.. Smith after Clifford
Thorne state railroad commissioner
! Iowa forced him to admit that tn
showing of his nesa for the year@lel
was better than for any previous yea
in its history. excepting 1910; that IN
showing for 1918 was better than 70
the average Of the Ave year perioo
190s-'13. and that it was better thai
the average OF the FIVE year perioc
1903 -os'. or any other five year perio
or any other single year.
Before Mr.. Smith was interrupted h
told the commission expenses wer
going up and revenues We're comm
down. He said. e emphasize his re
mark:
I'VE are going 10 the devil as fas
as we can.
Here Mr.. Thorne asked him TO nam
any one year prior to 1919. aside froI
1910. when the net operative revenu
of his road was greater than it was
1913. or as great.
Mr.. Smith said there was no year.
Net Income Second Best.
Mr., Thorne then asked him to nam
one year when his net corporate ir
come. above all fixed charges an
above all operating expenses was a
great as in 1918, aside from the sing
year 1910.
| Again Mr.. Smith admitted there ws
no such year.
Mr.. Thorne then forced admission
! that the net operative revenue avel
ages for the five years immediate
, prior to 1918 were higher than for II
. FIVE year period preceding them ar
that the averages for 1913 We're high
than for either period OF five years.
Mr.. Thorne next asked him as
/ the returns on capital invested. ar
1 again the admission was forced tn:
. the returns for 1918 were greater ths
4 for any year. cr for any period
e years, except the year 1910.
2 Still lnei.te on Emergency.
' Following this. Chairman Harls
asked Mr.. Smith If, in view Of II
. admissions ne had just made,
8 thought there was an emergency col
: fronting the railroads.
e Mr.. Smith replied there was tn
n the bottom fell out OF things during t
last quarter # 1913. Mr.. Harlan il
4 terrupted him. saying:
r You did not base your case on Il
las: quarter Of 1913: You started
before that quarter commenced
On further questioning by "
Thcrne and the commissioners. "
: Smith begged off and asked that t
-. New York Centrars statistician, w.
:. Wishart. be heard.
!, The railrC ads will finish their stat
F.: ments tomorrow. In view OF toda,
:. proceedings they VIII attempt to clio
them up with general request I
= relief by Samuel Rea, president OF Z
a Pennsylvania.
The railroads will seek to have
cision without argument, but Louis
/, Brandeis, attorney for the comm!ssic
), will insist upon arguments
y Brandeis also will insist upon furth
10 investigation into the expenditures
the Pennsylvania, New York Centr'
:. and Baltimore and Ohio.