The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1914-10-20
fiI-ARD TELLS COMMISSION
AFFAIRS ARE IN cRITI-
CAL SITUATION.
RAILROADS OPERATE AT LOSS
he Railroads of the U. S. Have Over
$o2O,ooo'ooo Outstanding obIiqa-
t'ons Which Will Mature and Mus+
Be Met Within Next 12 Months,

washington, Oct. 19-Public hear
lhgs on the new application of East
drn railroads for increased freight
rptes which they contend are naces.
shry because Uf The worldwide hnal-
Gal eXigency, dIi il. part to the E..
Tppean war, Woe begun here .oda ?
before the interstate commerce com
mission. The commission is hearing
afSument only upon issues which
hpve arisen since its decision in July
which absolutely denied increases
east lof Pittsburg and Buffalo and
granted increases west of those points
to the Mississippi river
The railroad lines were represent
ed by their principal executives In
dlvidual shippers and shippers or
ganizations who oppose further in
creases were represented by counsel
among them Clifford Thorne, who led
the opposition at the last application.
Today's hearing was given over to
Il statement for the railroads. The
shippers and their representatives
will be heard later.
President Daniel n. Willard, of the
Baltimore Il Ono railroad Chairman
OF the committee of railroad presi-
dents, made the opening statement,
for the Eastern railways.
THE needs of the carriers are
pressing and immediate" be declared.
II he actual situation has become ex-
tremely critical"
The roads are seeking a flat in
crease of per cent in freight rates
the territory east of The
Mississippi and north of the Ohio
and Potomac rivers. Mr.. Willard call
ed attention to the decision of the
commission in the former case where
in was stated that "the net operating
income of the railroads in Official cla.j
siflcation territory is smaller than is
demanded in the interest of both the
general public and the railroads" and
to the fact that the railroads had al
ready taken action secure addition
al revenues through various advances
and changes of practice The meas
ures of relief proposed bv the com
mission will not adequately meet the
existing situation" he added.
The annual statements of all the
railroads involved in this proceeding
combined for the fiscal year ending
june 80, 1914, show roundly that the
total operating revenues that yeav
were approximately $53,OOO,0QO less
than the previous year while the op-
Grating expenses for the same period
were approximately $1S,OOOO0O great
er.
THE net operating income of these
for the same period
to $25S,900,0OO, approxi-
mately $77,700,000 less than was
earned the previous year and eqbal TO
1893 per cent upon the property IN
vestment.
The income applicable to interest,
dividends and surplus the last fiscal
year was $2G4,D00,000 or 4.02 per
cent upon the total capitol obligations
1T is known that the railroads Of
the United States have over $J2000G,-
900 outstanding obligations which
will mature and must be met within
the next 12 months. 1t was shown in
the original record in this case that
the railroads in official classification
territory only had spent approximate
Iy $200,000,000 per annum upon their
for improvements and ex-
tensions during the last ten year pc
riod and it will be necessary to con-
tInue such expenditures il the roads