Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1914-10-21
WILLARD's SECOND APPEAL.


N ANfEL E WILLARD president Of the Baltimore
- and Ohio Railroad Company and also head Of
the committee of Eastern railroad presidents that
resens approximately 10000 miles Of line, has made
another earnest and it is hoped convincing plea to
the Interstate Commerce Commission for justice for
the railroads in the matter of -ates
In the main what Mr. Willard said in this renewed
appeal was what he said at the former hearing AS,
in both instances, he dealing with economic and
statistical facts, there could not be much variance
Mr. Willard called attention to the decision Of the
Commission in the former case, wherein was stated
that the net operating income Of the railroads in
official classification territory is smaller than
is demanded in the interest of both the general public
and the railroads. to the fact that the railroads
had already taken action to additional
through various advances and changes OF practice but
added Mr.. willard "the Of relief proposed by
the Commission will not in opinion adequately
meet the existing situation"
1.-THE of all the railroads involved
in this proceeding combined for the year end
ing 30 1914 roundly that the total operating
revenues during that year approximately $4S-
100000 less than during the previous year while the
operating expenses during the period were APP
proximately s22OoOOOO greater" Mr.. Willard said
"The net operating income these companies for
the same period amounted TO s26OOOO0OO, approx
mately S76OOOOOO less than earned during the
previous year equal to but 39S per cent the
property investment, lower return than shown
at any time in fifteen years.
"The income, applicable to interest, dividends and
surplus, during the fiscal year just closed $685.
100000, 400 per cent, upon the total capital ob-
cations. this return also being lower than any in f-
teen years.
"A war such as that raging great and inn
mediate disturbance industry, and finance
II contraction Of credit and great restriction
if not the actual stopping of international trade as well
as serious disturbance TO domestic commerce, and, as
we have seen. It has thrown the security markets Of
the world first into panic then into suspension Of
operations.
These have in fact been the immediate, direct and
clearly apparent consequences Of the war which be-
gan less than three months ago; but the ultimate and
lasting consequences almost as plainly to be
seen and will certainly follow, if they do not accom-
pany, the conditions mentioned
"These enormous destruction of wealth. with
great diversion Of labor and capital to nnproducve
employment, thus causing a check to the worlds
emulation Of capital, and a serious and pro-
llonged rise in the of interest The effects such
higher interest rates will continue long the pres
ent emergency has passed, because they will be re-
Elected in the basis upon which the securities will
be issued, from time to time required, for refund
ing and other purposes.
"In far the and its consequences tend. as
I have just shown change the conditions surround
ing the enlistment Of new capital, they tend to change
the fundamental relation between railroad and ship
per- the capital one OF the
elements OF the of transportation.
1T is known that the railroads OF the United
have S52OOOOOOO of outstanding obligations which
will mature and must be met within the next twelve
months alone. II shown in the original record in
this that the railroads in official classification
ritory only had spent approximately S20OO0OO00 pei
annum upon their properties for improvements ana ex
tensions during the last ten-year period and it will BIZ
necessary 10 continue such expenditures If the roads
are to maintain their standard Of service and provide
for the growing needs Of the future.
Further. as nearly be ascertained there arr
more than S3OOOOOOOOO par value Of American rail
road securities held abroad investments The de
mands for cash in Europe growing out of the presen
situation will doubtless result in large selling of suc
securities when the markets stock exchange
are again opened and the possible effect such sell
ing upon railroad credit related subjects is
/ ing much concern.
with all this in mind It win readily be seen tina
the available supply of and probable demand fol
new capital as we'll the interest thereon
OF great importance not only to the railroad
but also to those who depend upon them for trans
| portation."
II such a show that does not lead the Interstat
Commerce Commission to give relief to the Easter
railroads, Il will be because the OF the commits
soners are closed to legitimate argument and thei
minds so congested by anu-corporation prejudice tina
they refuse to perform their proper function.