The Sentinel=record., 1915-03-05
OFFICIALS WERE PRESENT
Increase Should Be Such as to Enable Roads Pay Dividend With Margin Over For Surplus, State the Road Officials.

Chicago March 4.-t Outeudlng that the margin between their income and expenses was becoming so small as seriously to affect their credit forty one western railroads began before Commissioner w. VI. Daniels here to- day arguments in their application to the Interstate Commerce Commission fer an increase in freight rates, which it was said would add $10,0000O0 to their annual revenues.
 Today's arguments were of a gen. eral character designed to show a necessity for higher rates on certain commodities ater the rates on com modities, such as grain live stock, packing house products, coal and fruits and veeetable dle 10 be con sidered in detail
 The chief contentious of the roads as outlined by C. F. SchaU. president Of the NJ .ssoui Kansas and Texas railroad: s M Felton. president of the Chicago and Great Western and z. C. Wright counsel for the Chicago and Northwestern road, were
 That all the railroads should be per mitted 10 charge enough to pay at least : per cent dividends with a margin over t.at for surplus and that at presene many roads are not able to pay more than , per cent and some cannot pay anything.
 That their small profits impair [ ..fT pay h'eh rates for new capital.
 That public demand for elaborate pa enser stations and freight ter minals to enhance the beauty Of cities has placed burdens ol the railroads without ,ncrea a.ing their revenues.
 That increased equipment higher wages and restrictive legislation has greatly increased the eXpenses of the roads involved
 Demands of the roads would amount not to $l0,o00. .0o0 but to S75 o00.90o or $l00ooo,0oo a year. asserted Clifford Taome leading coun el for the ship pers. who asked Mir. Schafr if it were not merely ou arcomt Of tle Euro peau war that the railroads were ask. ing increases. Mir Schaff said Inc could not recall any increased eNpen ses on account of the war
 What has happened since the war commenced that has reduced your rev. enues2" asked Mir, Thorne
 There has been a depression in business" replied Mr. Schan.
 The witness then said it was not be- cause of the war that the rate, were asked for, but because of general business conditions since 1908 In the a-t seven years the average net in come of the forty-one roads, he said, was 4I9 per cent, or assuming that the roads were entitled to earn [ per cent, there was in the period men toned $1 500, ,000 0O0 in capital on which no income was earned The total capital in that period was $4y 57o,00o,000, said Mir Schatf
 Mir Schaff also asserted that while in previous years the roads were able to borrow money oI l2 to 5 per cent basis many of them now had to pay per cent and more.
 Mr Felton asserted that the need of the western roads for more rev. enue and "a more liberal treatment by the public' was imperative.
 "A good illustration of the expense of concentrating our passenger bust ness" he said, lis seen in the cost of the new terminal at Kansas City. The final cost will be s50,oO0,00O
 This station, like the one project | at St. Paul, was a matter of local pride It all means increased burden for the railroads without more in- come
 Mir Felton will be cross examined tomorrow
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