New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-29
Tell Interstate Commerce
Commission Roads Are
Prosperous.
CARRIERS COUNSEL
PLEADSPOOR EARNINGS
Wages and Operating Expenses
Have Increased, He
Declares.

Washington, April cs-Brefs In opposi-
ton to an increase OF freight rates asked
for by the Eastern railroads were hled
to-day with the Interstate Commerce
Commission on behalf OF the Pittsburgh
Coal Company. the New Pittsburgh Coal
Company and the State Railroad commits
sions in tn. Eastern classification terri
tory. when arguments in the case were
resumed.
Clifford Thorne. in brief for the rail-
road commissions. urged that the net op-
Grating income for the carriers involved
was greater during the last four years
than for any similar period in their his
tory; that the net earnings during the last
five-year period were greater than DURING
the preceding five years and that those
for 1913 were greater than the average Tor
either OF these fve-year periods. he
urged also that the future would deNeiop
inventions and improvements which woulo
further augment the carriers revenue
Answering statements attributed TO the
carriers that their bonds are not attrac-
tive TO capital, Mr.. Thorne asserted that
they average higher than any other class
of market securities except government
bonds. He added that II the commission
denies the proposed increase the prosper
ity OF the carriers sis bound to keep on
increasing. lust as Il has In the past
Roads Earning Moro Money.
The brief of the coal companies asserts
that exhibits OF the carriers show that
gross and net returns for 1918, particularly
for the coal-carryins roads, are more sat
isfactory than they have been in the past
The situation, il is declared, calls Tor an
adjustment Of rates as between trafnc
and localities unless what the traffic VIII
bear" and the value OF the service 10
the shippers" as determined by the inter-
ested carriers. are TO continue Tor the
future. The brief asserts that mine prou-
nets. including coal, now bear more thsn
their share OF the transportation ouroeh
arf dds that the profits earned By the
ro9 ON coal range from 100 TO Jn per
cent
That fundamental economic and hnan-
cial conditions justify an advance IN
freight rates was argued by George
Browneu, vce-president and general
counsel OF the Erie Railroad
IF operating expenses" he said ana
the new burdens imposed by la" upon
railroads had not been enormously IN
creased they would nov be IN highly
prosperous condition. out it is net income
and not the gross that counts.
Until recent years the railroad indus
try was. like other industries, responsive
TO the law OF increasing returns under
which an increase in the volume OF uafilc
would produce a decrease in the unit or
cost. and operating revenues would IN
crease more ~s.pidly than operating eN-
penses
IAN this is changed. The railroad mas
lost in large measure its ability TO control
its expenditures. II is subject 10 govern
mental regulations and control 10 mucn
greater extent than most other indus
tries. II has been subjected TO require
ments Of legislatures and regulatory
bodies. both federal and state, which have
increased greatly its operating and ITS
ca pital EXPENSES"