New Britain herald., 1915-03-30
SHIPPERS OPPOSITION
 TO RATE INCREASES
Continued from First Pagc.)

in 1914 in maintaining their prop critics s2,S00 per mile of line, which was greater than in any other year in their history.
 Tt will be proved that the rail- roads in western territory as 8 whole have actually expended in maintain
 ing their properties during the last
 five years an average of s50,OOO,000 a
 year more than for any preceding five
 year period since the first railroad
 was built in this territory. Every
 railroad witness who took the stand
 admitted on cross examination that they were maintaining their proper ties at a higher standard during re- cent years than ever before.
 Change in Accounting System.
 "It will be shown to you that the | decline in the percentage of operat- | ing income on property investment | upon which the carriers arc relying | so strongly, results from a change ih
 the system of accounting, and not from any operating condition. l.
 During the year 1914, as all peoplt know, there was a worldwide busF 1 ness depression. In the United States the grain crops of the preceding fal | fell over JUU,UDU,U0O DUEhelS, |
 "In the exhibits that will be offeres 1 it will be shown that in 1913 the nf revenues of the railroads In westep 1 territory as a whole, above all opel ' ating expenses, amounted to S420,00q 2 GOO, being the largest with only of y Aception-191G--sincc the first trad Y as laid west of the Mississippi. t
 Average Net Revenues. E
 "The average net revenues of thcb railroads. during the past five ycaf ii averaged s40O, eco, eco per year. Tfr II was greater than during any five ycE II r,eriod prior to 1913 in their whP o history. It will be oroved that f b h return of net corporate u come on capital stock outsnndtnE h tl 1913 was more than double whatIt was sixteen years ago, and five uris x, greater than it was twenty-five yeas oi 9 go. ltr
 "On the first day of these heariBs ri we announced that we expected ko .; prove these railroads have ben =, building many additions and betF- ments. which they were charGingt 10 operating expenses. In other wofs, after paying return on their invat- ment, we have been building thir properties for them, and then are le- uuired to pay a return not only bn Ia their investment but also on our n- c on what we build for thtn. This is fundamentally unsound md n unjust le
 Charged to Operating ENpcnscsi IT
 "President Felpn. of the Gtat li Western, frankly admitted, on dihct " svidcncc, that practically one-half lhe si .ost of additions and betterm pts iD ,ould be charged to operating ex- sl )cnscS and that very large sums we're l il % charged during the past four yetrs President Bush of the Missouri Ptci- t' ic admitted that large portions of st he cost of rebuilding his road duiing W ecent years had been paid out of as operating revenue, and charged ko le expenses MT. WettlinE, a witidss or all of the railroads, made a similar to admission. but was unable 10 sate co low much of that had been fso n' harged The magnitude of the tum tf involved may be grasped. when t' tf loted that MT Wettling' sexhibit shows oI hat over s70O. 900 have bcen ex- al pended in additions and bcttermeSts oi " these western railroads during fhe fC ,ast seven years. It is safe to' say in hat the cost of additions and bethr- nents amounting to several hundfed w million dollars has been charged | to a perating expenses by these wcstfrn w ailroads during recent years. kSo R ong as this practice is permittcdfto bt