Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1914-10-20
ROADS MAKE PLEA
FOR RATE RAISE

CONTINUED from Page oneo
credit OF the line. a recent note issue OF
t35o0o.O0o by the Baltimore A. Ohio was
marketed al par, bearing ~ per cent in
terest and commission OF II Of per
cent was paid. making the total cost 10
the company per cent. This issue must
be met IN June next year. Mr.. Willard
said, and the present outlook was that
money could not be obtained then at less
than OF per cent, Already, he said.
other concerns had been forced to ray
other rates than 6 per cent.
Mr.. Brandeis took exception TO the
statement OF the baltimore & Ohio sur
plua He insisted that s22.Oooooo OF the
p2o0o.0O0 was represented In the lines
investment in securities OF the cincin-
matt. Hamilton q Dayton railroad now in
the hands OF . receiver
willard Aamlts This.
Mr. Willard admitted this. but de-
clared the purchase OF that road was not
at Issue IN the present hearing
whatever our necessities ne said.
they are not due 70 the Cincinnati.
Hamilton q Dayton"
yet you have ssSooe.ooo IN notes to
pay next year. said Mr.. Brandeis. "and
you have advanced s22.O10.o0o 10 the Gin
cinnati. Hamilton a Dayton"
| RevsFting TO the possibility that inter
est. rates would be. greatly advanced
when these notes fell que. Mr.. Brandels
asked;
III 4 be true that you may have 10
pay or s per cent. isn't that a risk that
should be taken by the stockholders
through a reduction OF dividends rather
than be met By an advenee IN rates
You defend here today 4 reduction Of
practically every railroad expense ex-
ccpt divisions.
safety First Consideration.
NOTHING we do in the way Of decreas-
Ing expenses OF maintenance and equip
rnsnt Il permitted TO encroach on safety
OF operation" Mr.. Willard replied.
| Mr. Brandies declared the statement
OF the railroads had disclosed 10 far
nothing originated since the commits
sIon's recent ruling, rejecting the eastern
lines previous plea for a Der cent ad-
vance In rates. In reopening the case,
the commission specifically limited IL tc
matters arising since that time Mr.
Brandels said that decision had forecast
falling off IN revenue Of s7S,ooooo for
the period embraced. and the companys
statement OF s7s.oOocoe ahrinkage only
served 10 confirm that estimate.
| Yrhe commission also forecast improve
ment IN business conditions" said Mr.
Willard, whereas there actually hai
been retrogresslon." -
expenditures Reduced.
Tho expenditures on maintenance o
| way and equipment, Mr. willard said
had been greatly reduced because Of tn
\ fiald outlook. He added that thousandl
OF cars In bad order were being held b,
his line without repairs because the,
could not now afford IT, although the de
nand Tor the cars had decreased. '~rh'
general manager has received instrue
tons not TO expend more than per cen
{: the gross earnings for maintenance.
he added.
In response to further Questions BY MI
lnfandels. Mr.. willard said the railroad
had followed the suggestions Of the com
Infusion IN making some Increases IN pas
senger rates. both on mileage books an
straight fares
what INCREASES WouIa Amount TO
} TO che baltimore a Ohio he though
liz likely the increase would aegregat
lin time siSo.Ooo annually ON the mtleag
books, but 4 was impossible 20 say ho'
much might be realised from advance
on other fares.
The roads had also followed the aus
session OF the commission as 20 N
elimination Of certain free services. b.
la probably would take many month
fairly 70 work them out.
5 'iDo you know Of any eompanles-rai
roads or other eoFposasions-that hay