The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1914-10-23
ASK FREIGHT
RATE INCREASE
Eastern Roads Before Com
s..rt
merce Commission. ,
WANT RATES RAISED $50.
owing 20 Shrlnkase Of More Than
$4,000, 900 In Net Revenues
Due 70 Depression
Further Hearings.

Whshington-Urging that business
depression and the war in Europe had
caused "A shrinkage OF more than
s76, 600, 600 in their annual net reven'
ues. representatives of thirty-eight
Eastern railroads, operating over 3d.
600 miles of transportation lines, ap-
peared before the Interstate Com
merce Commission asking that they
be granted at least a five percent in
crease in freight rates.
Daniel L. willard, president OF the
Baltimore and Ohio railroad. and also
head Of the conference OF presidents
OF the lines involved, was the princi.
pal witness. He was supported by a
mass OF statistics presented by Vice
President Shriver OF the same line, act
ing for all the roads.
In opposition TO the plea OF the car
riers, Clifford Thorne appeared for the
public service corporations of several
Middle Western and lntermountain
States. and also for shippers organiza-
tions In the region affected. Mr..
Thorne declared his purpose and the
desire of the shippers that was the
publlcs side OF the question should
be fully brought out. He did not ex-
pect TO call many witnesses.
Louis Brandeis, counsel for the com.
mission, vigorously assailed Mr.. Will
lard's position in cross-examination.
particularly calling attention TO the
fact that the Baltimore and Ohio rail-
road had adhered this year TO its pol
icy Of declaring percent dividends.
despite an annual deficit OF more than
81, 900 900 In its net revenues. The
affairs OF this system were the only
ones given detailed attention today.
as officers OF the other lines were not
present. Mr.. Brandeis implied in his
questions, however, that a similar
policy had been followed by all the
lines.
81 am not prepared TO say. however,
the witness added, what j may
recommend in future In view OF pres
ent conditions"
Mr.. Brandeis took exception TO the
statement OF the Baltimore and Ohio
surplus. He insisted that 22,000,0Ot
of the $32,000,000 was represented In
the lines investment in securities OF
the Cincinnati, Hamilton and Dayton
railrcad, now In the hands OF a re
ceiyer. Mr.. Willard admitted this
but declared the purchase OF that road
was not at issus in the present hear
ing.
whatever our necessities" he said
"they are not due TO the Cincinnati
Hamilton and Dayton.
"Yet you have s35,OO0,O00 in notes
TO pay next year." said Mr.. Brandeis
"and you have advanced s22 100000
TO the Cincinnati, Hamilton and Day
ton"
Reverting to the possibility that
interest rates would be greatly ad
vanced when these notes fell due
Mr.. Brandeis asked:
'If 1t be true that you may have
TO pay 7 or per cent. isn't that a
risk that should be taken by the
stockholders through a reduction oi
dividends rather than be met by ar
advance In rates? You defend here
today a reduction Of practically ev
cry expense except dividends"
Nothing we do in the way OF de
creasing expenses OF maintenance
and equipment is permitted 10 en-
croach on safety OF operation" Mr.
Willard replied
"The commission also forecast i'm
provement in business conditions,
said Mr.. Willard, whereas there ac
tually has been retrogression."
Expenditures on maintenance OF
way and equipment, Mr.. Willard
said. bad been greatly reduced be
cause OF the financial outlook Tic
added that thousands OF cars in bad
order were being held by his line
without repairs because they could
not now afford e.
do you know OF any companies-
railroads or other corporations-that
have been able 20 market their Sc,
curities at better rate than the
Baltimore and Ohio7" inquired Mr..
Thorne.
Personally, do not" replied Mr..
Willard. I'VE sold our securities al
a fairly reasonable rate"
Can you mention any increase in
labor cost since 1922" pursued Mr.
Thorne.
yes" said Mr.. Willard. I'VE have
advanced our laborers engaged on
maintenance work in the aggregate
between 100000 and 100000 a
year"
In response 20 questions. Mr.. VII
lard said he did not share the com
missions view that coal rates ought
not TO be increased
I'VE need additional revenue.
said he, and the best and fairest
way would be 20 advance all rates
Including those on coal"
Questioning Vice-PreBldent shriv
er, Mr.. Brandeis drew out a state
ment that the ratio of operating ex
n