The Birmingham age-herald., 1914-10-20
EASTERN RAILROADS
 ASK FREIGHT RATE INCREASE 0F |. [. [.
Claim Business Depression Has Caused Shrinkage of Over $76, ,000, ,000-Bran-
 deis AssaiIs Position

Washington. October io--ursing fhnt business depression and the war In Eu- rope had caused n shrinISmge of over $70.00e,0O0 In their annual net revc- n"es, representatives of 3s eastern rnii- roads operating over 5o,000 miles of transportation lines appeared before the interstnte commerce commission to- dny asking that they be granted at lease per cent increase In freight rntes.
 Daniel F.. Willard, president of tho Baltimore and ohio and head of the conference of presidents of the lines involved, was the principal witness He was supported by mass of statistics presented by Vice President Shiver ot the same line, acting for all the roads, Purifier evidence will be submitted to- morrow.
 In opposition to the plea of the car riers. Clifford Thorne appeared for the public service corporations of several middle western and intermountaln states and also for shippers organiza- tions in the region affected. Mir. Thorno declared his purpose and tic desire of the shippers was that tne public's sid, of the question should be fully brough, out.
 Assails Position
 Louis Brandeis, counsel for the com missors vigorously assailed Mir. Will lard's position In cross-examination. particularly calling attention to the fact that the Baltimore and Ohio this year had declared it's regular per cent dividends despite an actual de- felt of more than s3,00o,O0o in net rev enues. MT. Brandeis indicated that the affairs of other lines would be similarly taken up later.
 Mir. Willard said the dividend had been maintained at per cent this year at his recommendation. lie declared he believed 1t was Justified by the fact that the road had $S2.000.O00 In sur plus and 1t was necessary to maintain the credit of the line.
 MT. Brandeis took exception to the statement of the Baltimore and ohio surplus He Insisted that $22,000,000 of the $32, ,000,000 was represented In thcA lines investment in securities of thu Cincinnati, Hamilton and Dayton rail road and in the hands of receiver. MT. Willard admitted this but de clered the purchase of that road was not an issue in the present hearing.
 Mir. Brandeis declared the statement of the railroads had disclosed so far nothing originating since the commis- sions recent ruling rejecting the east ern lines previous plea for a per cent advance in rates. In reopening the case the commission specifically limited It to matters arising since that time. Mir. I,randeis said that decision had fore cast falling off in revenue of $75,- VOu,00 for the period embraced and the eompanies statement of s76,000.e0o shrinlkage only served to confirm that estimate.
 Forecast Improvement
 'The commission also forecast i'm provement in busineess conditions said Mir. Willard, whereas there actually has been retrogression."
 MT Willard said said the railroads had followed tho suggestions of the commission in making some increases In passenger rates, both on mileage books and straight fares. To the Baltl- more and Ohio he thought it likely the increases would aggregate In time s130. 900 annually on the mileage books but 1t was impossible to say how much might be realized from advances on other fares.
 The roads also had followed the sug eestions of the commission as to the elimination of certain free services but lit probably would take many months fairly to work them out. DO you know of any companies-- railroads or other corporattons-that have been able to market their securl q ties at a better rate than the Balti- more and OhioT inquired MT. Thorne.
 "Personally, I do not, replied MT. Willard We sold our securities at . fairly reasonable rate"
 can you mention any increase In labor cost since 1s12?" pursued Mir, Thorne.
 "Yes,r said Mir. Willard. I've have advanced our laborers engaged on main- tenance work in the aggregate be- tween s5oo,o0o and s7oo.ooo year."
 Does Not Share View
 MT. Willard said he did not share the commissions view that coal rates ought to be increased. We need addi- tlonal revenue said he, and the best and fairest way would be to advance all rates, including those on coal'
 Are these increases asked for to es- |tablish credit or to obtain money to
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