The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-10-22
RAILWAYS SUBMIT
RATE RAISE PLEA
Eastern Roads Show Their
Earnings For 1914 Have
Decreased. While Ex-
penSeS Increased.

Washington. Oct. 20.-Public hear
ings on the new applicat ton OF eastern
railroads for increased freight rates,
which. they contend, are necessary be-
cause of the worldwide financial ex-
igency, due. in part. to the war. were
begun here today by the Interstate
Commerce commission. The commits
sion is hearing argument only on is
sues which have arisen since its deci-
sion In July. which denied, absolutely,
increases east of Pittsburgh n Buff
falo, and granted increases west from
those points to the Mississippi river.
Commissioner Clements presided. The
railroad ines were represented by their
principal executives. Individual ship
pers and shippers organizations, that
oppose further increases, were repre-
sented by council. Among them vas
Clifford Thorne, who led the OPPOSE
ton to the last application. .
Today's hearing was given over to
a statement for the railroads. The
shippers and their representatives will
be heard later. Daniel II. Willard,
president of the Baltimore & Ohio rail-
road. making the opening statement
for the roads.
Mr.. willard concluded his statement
by saying hat "a grave emergency ex-
lists" and that, should 1t appear at any
time that the emergency had passed,
the commission had power to order any
reduction. He was of the opinion that
IL such reductions were shown to be
warranted the railroads would not OPP
pose.
George Stewart Patterson, general
counsel for the Pennsylvania, asked
that Vice President Shriver, of the
Baltimore & Ohio, be appointed to sub
nit data for the eastern railroads as
a whole to support Mr.. Wizards state
ment. Mr.. "Shriver presented statistics
of the financial condition OF the rail-
o ending June so, which were not
available for the commissions consid :
GRAFTON In the previous case. This syn.
opsis of his statement was presented
by Mr.. Shriver:
Operating revenues in 1914 were less
by $4S, 000, 900 than in 1918. although OPP
Grating expenses Notwithstanding the
smaller amount of business handled
were $22. 900, 900 more than in the pre-
vious year. While the business han
died in 1914 was excepting 1913, the
largest in 10 years, the net operating
income was the smallest shown in II
years. Taxes increased 50. 800, 900 in 1911
AN increase of 1853 per cent.
For the Pennsylvania, New York
Central ana the Baltimore & Ohio. net
- III ~ - Wis VIII - ASgS
thar in 1913. and the lowest in 10 years.
The divisions paid by these three sys-
terms were the smallest In five years
and at the lowest average rate for 20
years.
I'm 1914 FOR the three systems the
sum available for interest, dividends
and surplus amounted TO but A per
cent on total capital obliga lions, a rate
much the lowest of any shown in the
preceding 16 years. Previous to 1914
the ratio did not fall below 5.67 per
cent" ......
Louis d. Brandeis. counsel for the
commission asked Mr.. Shriver on cross
Haven and Boston & Maine railroads
ha6 not accounted for $4,000. 900 of the
SIS, 0G0. 900 shown in the statement OF
Mr.. Shriver as inroads in capital to
meet dividend payments. Mr.. Shriver
admitted such was the case. Mr.. Bran
deis also brought out the fact that the
last 6 per cent dividend paid by the
Baltimore e. Ohio. was paid despite ali
actual deficit OF $34,0 00 900.
Clifford Thorne, representing the
railroad commission Of Iowa, Kansas
Nebraska, North Dakota, Oklahoma.
Arkansas, Arizona, Idaho. Nevada. New
Mexico and Utah. as well as the Corn
Belt Meat Producers association the
American Farmers Grain Dealers as
idAiSAf NAA1 " q 1NoIS AlUAlhiaNNhA
ers' association; the national council of
the Farmers Cooperate association
and the American National Live Stock
association. all of which have inter
vened in protest against the granting OF
the advance in rates, began an exam
ination of witness to how there has
been no material increase in the cost of
railway supplies within the last two
years. and partly within the last two
months. He began with wages and
after considerable argument the wit
ness agreed to furnish figures on wages
m supplies which would afford g
basis of comparison.