Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1914-10-20
Willard makes
STRONG Plea FOR
THE RAILROADS

Continued From FRS, Page.
terially strengthen the credit Of car
riers in the United States
Cannot Close It's Shop.
"The railroad is a semi-public insti-
tuition" said President willard. 1T
cannot close its shop For instance,
30 per cent. of our passenger mile
age does not pay for the running.
Mr.. Rrandeis cross-examined both
Mr. Willard and Mr. Shriver at
length with regard to the connection
of the b. g. o. with the c., II. & d.,
but threshed over old straw and de-
veloped nothing new, except the en-
phatic declaration from President
willard that the b. & o. at the pres
ent time Is a going property. fairly
capitalized. well worth its outstand-
ing obligations. and much more. He
said, however, that it would need
about S15.OOO,OOO a year for some
years to come to make needed i'm
provements and that it could only OBJ
tain this by an increase in rates.
President Willard made the open
ing statement for the eastern rail-
ways.
"The needs OF the carriers are
pressing and immediate" he declared.
"The actual situation has become eA-
tremely critical.
The roads are seeking a fiat IN
crease OF 5 per cent. in freight rates
throughout the territory east OF the
Mississippi and north OF the ONO
and Potomac rivers.
Relief Not Adequate.
Mr. willard called attention to the
decision of the commission IN the
former case. "The measures OF re-
lief proposed by the commission Will
NOT. i'm our opinion, adequately meet
tho existing situation he added.
"The annual statements of all the
railroads involved in this proceeding
combined for the fiscal year ending
June 80, 1914, show rOdncly that the
total operating revenues during that
year were approximately S93'O0OoOO
less than during the previous year.
while the operating expenses during
the same period were approximately
$1S,OOOOOO greater.
The net operating income of these
companies for the same period
amounted TO S25S, 100000. or approx
mately S77,70O,OO0. less than was
earned during the previous year, and
equal to but 1898 per cent upon the
property investment, a lower return
than was shown at any time in Is
years.
Income Falls Way on.
! "The income, applicable to interest
dividends and surplus, during the
fiscal year Just closed was S264,9OO'
600 or 400 per cent, upon the tota
capital obligations, jhls return alss
being lower than any i'm 10 years.
"A war such as that now ragini
causes great and immediate disturb
ance to industry. commerce an'
finance It causes contraction o
credit and great restriction, if no
the actual stoppage of internationa
trade. as well as serious disturb
ance to domestic receipt, as we have
seen. Il has thrown the security mar
kets OF the world. first into panic
and then into suspension Of opera
tons
Insofar as the war and its conse-
Quences tend to change the conditions
surrounding the enlistment of new
capital, they tend to change the fun
damental relation between railroad
and shipper, for the cost Of capital is
one of the most important elements Of
the cost Of transportation.
y 1T is known that the railroads Of
the United States have over $500 000
600 of outstanding obligations which
will mature and which must be me-
within the next II months alone, i
was shown in the original record in
this case that the railroads in officia
classification territory only had spen
approximately S20O.000,000 per an
mum upon their properties for i'm
provements and extensions during thi
last 10 years. and il will be necessar!
TO continue such expenditures If tn
roads are tO maintain their STANDARD
OF service and provide for the growing
needs of the future.
Cause for Concern.
Further, as nearly as can be ascer
tanned, there are more than S3OO0,000
600 par value of American railroad Sc
curitics held abroad as investments. Tn
demands for cash in Europe, growin
out OF the present situation, will doubt
less result in large selling of such Sc
curities when the markets of stock ex
changes are again opened, and the pos
sible effect of such selling upon railroa
credit and related subjects is causin
much concern.
with all this in mind IL will readil
be seen that the available supply q
and probably demand for new capita
as well as the interest rates thereon al
matters of great Importance, not onl
to the railroads, but also 10 those VIII
depend upon them for transportation.