The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-04-02
EARLY DECISION
IN RATE INCREASE
APPEAL EXPECTED
I. G. G. May Decide on
Question Within
Month.
HEARINGS WILL
BE CONTINUOUS
Recent Developments Tending
to Show Desire for Quick Dis
position of Question Cause
Body to Devote Attention
Almost Wholly to It's
Consideration.

Washington, April 1.--W neither East
ern railroad shall make general
freight rate increase may be decided
by the Interstate Commerce Comnis-
sion within n month. That tho case
would be disposed OF at much earlier
date than had been expected became
apparent to-day with the commissions
determination to hold continuous hear
nrs until all testimony is in. even
though railroad representatives can.
not conclude their final statements to-
morrow night as planned.
Recent developments tending Ia show
a desire for a quick disposition Of the
question, have caused the commission
TO devote it's attention almost wholly
to the rate question. The case may be
submitted upon briefs with little. II
any, oral argument
The rate case was the subject of gen
crul discussion at the Capitol to-day,
as the result Of Senator La Follete's ac-
ton in introducing Y bill to make un-
lawful any attempt to influence mat
tcrS before the Interstate Commerce
Commission except in accordance with
the commissions regulations.
Financial Condition.
w II. Williams, third vice president
Of the Delaware aud Hudson Company.
submitted AN elaborate statement of the
general financial condition of the rail
ways at to-days hearing before the
commi isSion.
The average amount annually ex
pended by the railroads during tho last
six years for additions and better
ments,' me said, has been Substantial
ly $6n0,o00,OQU: aud To earn 40 per
cent on this amount would require adj
diiional receipts of SIS, ,Ji!.061. II the
railroads are TO secure sufficient funds,
their credits must be Improved and this
ram Il iSl h, lar
excess OF current earnings over the
current cost of operation and taxes.
There has been general increase
in the interest return demanded of in
vestment securities, and railroads have
been forced to meet growing compc-
tition in the investment held. The
ability OF the railroads to secure new
capital has been impaired by the re-
duction of the factor of safety OF In
vcstment."
Railroads Cost of Living.
w. g. Wishart, atatistician of the
New York Central, testified concern
ing u railroads cost of living. Rates
OF pay for transportation have gone
down sharply" he declared The
consumer OF to-day can secure more
transportation for given amount of
goods than he ever could before. and
tie carrier continues to sell at dcclin-
ing prices, regardless of cost of pro-
duction. While average revenues
have decline somewhat, wages have
risen "a per cent per unit of traffic,
and other expenses and taxes about IL
per cent per unit of traifc
j. II. Wallis, general superintendent
of motive power of the Pennsylvania.
testified that the system was obliged
now 10 pay far more for repairs, sup
plies and general maintenance Of
equipment than ever before.
Economic conditions in the United
States arc such that railroad retro
grcssion, rather than progression, must
take place unless tho per cent in
crease in freight rates is granted by
the Interstate Commerco Commission"
This. In substance. is the gist OF
facts and figures presented to the
commission to-day by y. II. Smith,
president Of the New York Central
Railroad.
I'VE arc fast going to the devil"
said Mr.. Smith
Clements Arouses Mirth.
Commissioner Clements caused con-
siderable mirth when he asked for
Smith to specifically state whether he
meant the officials or the railroads
were going ito the devil" Mr. Smith
said he meant the railroads.
IN the last three years the New
York Central spent $l59.oo0,000 i'm
proving its property" testified Mr..
Smith. Through use of these facili-
ties the gross income of the road for
the year 1913 was $4,000. 900 more than
in 1910. But, Notwithstanding this
Fact. by reason OF the increased eX-
pensc, the net earnings OF the road
were $3,2S!.000 less than in 1910, which
was before the Sl50,000.00O were
spent"
The New York Central has stopped
making all but absolutely necessary
improvements" declared Mr.. Smith
lie further stated that it's force of
Workmen has been reduced by about
1000.
last October there were i11 900 en-
ployes OF the road lie showed "whilc
in February last that number was cut
to lii.0OO. This vas dono to prevent
pending disaster. Tho difference be-
tween the working force OF Februa
1917, and February. 1919, was 1900
men,