Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-16
observation-disclosures
URGE REHEARING OF
FREIGHT RATE CASE
Interstate Commission Will
Take Up plea in Near
Future - Petitioners Are
Hopeful.

WASHINGTON, Sept. 16.-Members OF
the Interstate Commerce Commission will
take up at their next formal conference
the application Of the Eastern railroads
for a reopening of the per cent. advance
rate case. Whether this application is
80 urgent as TO call for a special meet
ing OF the commission before the end of
the present month has not been decided.
II a reply to the application is not made
this month the commission will consider
1t at Its first regular meeting the first
Monday in October.
IL Is generally conceded here that the
commission is likely to grant a reopening
OF the case, otherwise the Eastern roads
would have hesitated filing the petition.
The petition of the liz railroads re-
questing a reopening of the rate case was
signed by Daniel Willard. president of the
.. ana y. Railroad, as chairman of the
PRESIDENTS committee ana Is as follows:
Your petitioners 1t2 railroad compa-
MES, comprising the 95 Railroad systems
IN otilcial classification territory. parties
TO the above-entitled proceedings, re-
spectfuly petition the commission for
such modification Of the order of July
~, 1914. as will permit the carriers to
make effective the rates specified In tho
tariffs which we're by said order directed
to be Cancelled. Since the filing of the
report and entry of the order by the COM
mission In these cases. facts and clrcum-
stances have arisen which, taken in con-
nection with the facts already before
your commission, your petitioners believe
will Justify the relief herein prayed for,
These facts and circumstances are briefly
as follows:
First. During the month OF October,
with this commission the tariffs involved
In these proceedings. At the time OF the
filing Of the report OF the commission
there were avoilable for the information
OF tho commiseion the annual reports Of
your petitioners for the year ending
June 30, 1913 as we'll as the monthly re-
ports of your petitioners up to and in
Guiding May, 1914. Since that time the
complete income accounts OF your petit
TONERS for the fiscal year ending June 80,
1914. have become available.
THE reports OF your petitioners for the
year ending June 30, 1914 as compared
with the year ending June 80, 1918, show a
decrease in total operating revenues of
approximately 81 900. while during that
same period operating expenses have in
creased about 1923, ,000, 300. After deductions
there was a decrease In operating income
OF Approximately s73, 700, 900 Notwithstanding n
an increased property investment Thus
the tendency toward diminishing oper-
ating income found by the commission in
its report Is emphasized by the figures
covering the complete year to June 80.
1871, while the reports for July and such
figures as are available for August 1914
show a continuance of this declining ten
dency, notwithstanding the extraordinary
efforts that have been made to reduce
expenses
"Second. The unforeseen European war
has brought about an unparalleled de-
struction OF wealth and dislocation of
credit throughout the civilized world. It
Is certain that the competition for capital
Will be keener and interest rates higher
for some years to come than in any cor
responding period within living memory,
The emergency thus resulting Is extremely
serious 1t Is conservatively estimated
that the railroad companies of the United
States have obligations maturing in the
next 10 months amounting to we'll over
500 600, oCo' and 1t is imperative in the
public interest that these obligations shall
be duly met. large part of this sum
Is owed by your petitioners and they will
further need from time to time in the
next few years large amounts OF money
to provide for improvements which will
be necessary in the public interest to pre-
vent serious deterioration in the standard
or transportation service. In order IN
complete effectively for this new capitaI
they must have a material increase In
revenue.
Third. The commission In its report
made certain tentative suggestions as to
measures which might be taken by the
carriers to secure additional revenue.
Your petitioners are proceeding as rapldlv
as possible to put into effect the increased
freight rates in Central Freight Associa-
tion territory, authorized by the report of
the commission, and are giving earnest
attention to tho other recommendations
and suggestions of the commission with
respect to other rates and practices
1T Ia believed, however, that the addl-
tional revenue which may be secured by
the adoption OF means other than gem
eral advance in freight rates cannot be
obtained In the near future. and when
secured will be inadequate to meet the
needs of the carriers for increased rev.
enue in the present situation.
Wherefore your petitioners ask that
the commission modify the order afore-
said as to permit the carriers TO make
effective the rates specified in the tariffs
which were, by said order, directed to he
Cancelled, except so far as they have been
or may be superseded by advances fled
In accordance with the report of the Com
and that your petitioners may
have such other and such further relief
in the premises as to the commission may
seem proper"