The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-03-05
WESTERN ROADS
MUSTBEPERMITTED
To EARN MORE
If They Are to Keep Pace With
Public Demands for In
creased Service, Say Manag-
ers of the Roads.

Chicago, March 5.-That tho Fail-
roads operating throughout the west
must be permitted to earn more II
they are To keep pace with the pub
lies demand for increased service
was the substance Of testimony given
before W. NJ. Daniels. interstate COM
mcrce commissioner, today In the
hearing OF the application OF forty
one western railroads for Increased |
freight rates.
$. NJ. FELTON,. president Of the chi
cago Great Western road. resumed his |
testimony under cross examination by /
Clifford Thorns, representing the |
shippers who oppose the proposed in
creases. The examination was on a
comparison OF statistics for various
years as 10 the cost per mile OF haul |
ing freight. and the revenue OF the
road on IA mileage basis. FELTON, held
that the mileage income OF his road
WAS decreasing. He denied that MS
road was 80 prosperous that Il did
not need Increased rates and assert
ed that the railroads should be assur- |
ed a reasonable profit
How about investment In other
! lines OF buslness-ought they 10 oo
assured definite proht?" asked
I Thorne.
The difference IL that other lines
of business are not restricted on the
price Of what they have TO sell as the
railroads are" said FELTON,.
A.. r. Helm, representing shippers
In Kansas asked; DO you think all
urlt arta nlNI
Just because one of them needs more
revcnue?"
zone road is typical" responded
Mr.. FELTON,. The reason we are
combining our efforts In that all OF
US are in the same need" So far ns
his road was concerned. the witness
: added. even II the proposed rates
were enforced the revenue stiil
would not be enough, as his road
would enjoy an increase of only
, S3e5. .000.
, Luther Walter, attorney for certain
) packers. asked FELTON, II the railroad
/ presidents ever met 10 agree ON ho~
much advance should be requested
= Asked by Commissioners Daniels the
. purpose Of the question, Walter said
= "My information is that the railroad
J, presidents disagreed on how much
r they would ask for, that some wanted
+ three per cent, some five per cent
: and some twenty per cent ana that
4 finally they agreed TO ask for the
maximum amount and passed the
buck 10 the commissioners
FELTON, replied he never heard Of
}, such a discussion aud that none took
g place.
Festus j. Wade, a ~. Louis bank
If err. appearing for the railroads, testi-
IS fed that the value OF railroad secur-
n tiles had greatly decreased as an in
\. vestment
h, 1T In due To the constant tirad'
b against the railroads and Il has re-
suited In discrediting the roads" sais
p wade The decrease In railroad
n values may be explained In variou
A. ways II you are Democrat yo'
,d will blame Il on the European war
n you are a Republican you ma.
blame II on adverse legislation, bu
the fact remains that the depreciate'
~ credit OF the railroads Is hurting no
- the railroads alone. but the Who'll
~ country. Many of the western road
", not now paying dividends nhrro'
lu not now paying dividends narrowl
vi escaped rcceiverships last year befor
the war. The war had nothing TO d
Ia, with H."
w. Mr.. Wade produced figures show
TX ing the depreciation In the values q
ut stocks aud bonds Of the railroa
of groups.
Mr.. Wade said no better lllustrr
tiun OF the impairment of rnilroa
credit could be shown than In N
"a fact that savings banks had been r'
mt quirod TO charge on Si25.0oo,000 an
mt NE ana nre insurance compani'
ice 100000, 600 IN the last year on az
count Of the depreciation Of railroa
,.. securities held by them.
80 while money Is drug on q
market, while there Is more ia
- money now than ever before In u
''" history Of the country and viii
holders Of money are clamoring
he loan IL on four per cent basis
certain cases, the railroads are belt
OF charged higher rates, said Wade.
ere "industriRls can borrow money
nee four per cent but the public has h
"A come distruHful of the future of rn
roads and they simply Will not b
railroad securities.
"Never was there No much Il
rY money as now The federal rcser
banks have not been able since tn
ID. inception Ia lend enough money
pay operating expenses. There
ana now in the vaults ~ the federal
ing serve hank in New York t25O.ooo.'
,k'H of idle money"
.ith Mr. Wade attributed the condit
men OF the country's finances to the ins
,cm ficient revenues OF the railroads
ann
at Disastrous tire al Weed. Cal.