The Barre daily times. (Barre, Vt.) 1897-1959, 1914-10-20
RAILROADS
FACE CRISIS
Says Head of Baltimore &
Ohio in Outlining
Their Case
IN ASKING INCREASE
OF FIVE PER CENT.
EFFICIENCY Largely Caused
by the European
War Situation

hearings on the new application OF east.
ern railroads for increased freight rates
which they contend are necessary be-
cause OF the worldwide financial ext
We're begun here yesterday before the in
terstate commerce commission The
commission is hearing argument only
upon issues which have arisen since its
decision in July, which denied absolute
ly increases east of Pittsburgh and Buff
falo and granted increases west from
those points to the Mississippi FLYER.
All the commissioners, except Chair.
Imam Harlan, who is i'll, we're present
Commissioner Clements presided The
railroad lines were represented by their
principal executives. Individual ship
pors and shippers organizations who OPP
pose further increases were represented
by counsel, among them Clifford Thorne,
who led the opposition to the last APP
plication.
Yesterdays hearing was given over
to statement for the railroads The
| shippers and their representatives will
be heard later Daniel f. Willard, pres
ident Of the Baltimore Ohio railroad,
| be heard later.
President Daniel T. Willard OF the
Baltimore n Ohio railroad chairman OF
| the committee OF railroad presidents,
made the opening statement for the rail
ways The needs of the carriers are
pressing and immediate he declared
The actual situation has become ex
tremely critical
rhe roads are seeking flat increase
of five per cent in freight rates through
out the territory east of the Mississippi
and north OF the Ohio and Potomac riv
ers Mr. Willard called attention TO the
decision Of the commission in the former
case, wherein was stated that "the net
operating income OF the railroads in Of /
fetal classification territory is smaller /
than is demanded in the interest Of |
both the general public and the rail- |
roads" and to the fact that the rail !
roads had already taken action to secure
additional revenues through various nd /
vances and changes Of practice "1he 7
measures of relief proposed by the com 4
mission will not, in our opinion AIDE
quately meet the existing situation, he
added.
The annual statements OF all the
"a ilroads involved in this proceeding
for the fiscal year ended june
30. 1914. show roundly that the total
revenues during that year
were approximately s53000000 less than
during the previous year, while the OPP
Grating expenses during the same period
were approximately Sls,000.000 greater.
The net operating income OF these com
panies for the same period amounted to
s25S00O0O0, or approximately STT700,-
l0h less than was earned during the pre-
yious year and equal to hut 3.9s per
sent upon the property investment,
lower return than was shown at any
time in fifteen years The income, ap-
llicable 20 interest dividends and sur
plus. during the fiscal wear Just closed.
vas S26i 100000. OF 4.o2 per cent. upon
he total capital obligations, this return
llso being lower than any in fifteen
-ears.
"A war such a. that now raging
auses great and immediate disturbance
O industry commerce and finance II
auses contraction oi credit and great
estriction. ii not actual ,toppage, OF in
irrational trad, as wen a. serious dis
urbance 70 domestic commerce, and as
rc have seen. il has thrown the security
markets Of the world first into panic and
hen into suspension Of operations In
ofar rs tho war and IL consequences
end 70 change the conditions surround
ne the enlistment Of new capital they :
end 70 change the fundamental relation :
stpeen railroad and shipper for the A
OF of capital b. one 81 the most im
ortant element. ~ the cost Of traus
1T il known that the railroads of the
'nitod States have over s52ppoomn ~
outstanding obligations Which viii ma
lre and must D. met within the neat
Felpc months alone u was shown In
Be- original record IN this case that tire
ilroads in of6dal classification terri
lrv only had spent approximately 500
ioHnn per anuum upou their properties
lr improvements and extensions during
IS iasi ten wear period and i uil -
aaessarv o. roHtiuge such expenditure
thf roads are a. maintain thru stand
I'D 81 ser,lrs ard provide f1r ths grow
II need. % tie future