The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1915-04-01
ASSERTS RAILROADS
ARE ATTEMPTING To
CLEAN Up MILLIONS
Clifford Thorne Speaks
against Western Rate
Raise.
EARNINGS LARGE
Declared Roads Spend Great
Sums For improvements
Charged as Expense.
EARNINGS LARGE

eioii, l III Delldll Oh tllc protesting SNIP
pers in the western railroad freight
rate hearing outlined before Inter
state Commerce Commissioner w. NJ.
Daniels today the opposition of the
shippers to the freight ate increases
proposed by Al western railroad sys-
tens.
The railroads are seeking TO have
present rates increased an certain
commodities, which, they assert, at
present do not yield them Il fair
profit. The toal increases, if grant
ed, according to tie railroads, would
increase their revenue $40, 1000, 900
Il year.
The railroads have been presenting
their side of the case since March 4.
Mr.. Thorne's statement at the hear
ing today was the beginning of the
shippers case. He said:
AS indicating conditions in the
territory involved, only the testi-
mony OF the Presidents of the Chi
cago Great Western Railroad, the
Missouri Pacific Railway and the
Missouri, Kansas & Texas Railway
was introduced. Nothing further
need be said. This commission and
the public knows whether they repre-
sented typical lines or weaklings.
This procedure is in marked contract
to that pursued by the eastern rail-
roads. where the chief executives OF
the representative lines testified.
I'VE will show you that three
fourths of the traffic in this terri
tory is being handled by companies
that are earning, above all operating
expenses and above all taxes and all
interest on bonds and debt, from six
to sixteen per cent on all their capt.
tai stock notwithstanding in the
hands OF the public.
Some Zeal Opposition.
"Heretofore the railroads have
been far better equipped than the
shippers i'll cases involving rates;
but i'll the present case the commits
sinos OF sixteen western states, in
compliance with state laws, have Sc
cured the services of an eminent corps
of expert accountants and statisti-
clans, and are looking after the in
terests of the public.
Joined with the commissions arc
the representatives OF upwards OF
100000 manufacturers, merchants
grain dealers, live stock dealers, and
other producers, and consumers
scattered throughout the territory.
Never before has there been such
an extensive organization on behal1
OF the public in n case.
The famous Gould printing pres
scarhlal. where they made Erie stool
overnight, an incident that will prob
ably be famous for all time, only il
volved some 100000
THE present movement for in
creased freight and passenger rate.
involved several times that sum o
money, not just al one time, but ev
cry year, now and in the future gen
erations to pay.
THE impression has been givel
that railroads have not hcea able t.
maintain their properties during thu
recent years, that they have Deer
compelled TO retrench so severed,
that the public has been injured, a
we'll as the railroad properties.
will be c~onclusively proved TO yol
that these western carriers expended
in 1914 in maintaining their proper
ties $500 per mile of line, which
was greater than i'll any year in theil
history.
ut will be proved thai the rail
roads in western territory as a Who'll,
have actually expended in maintain
ing their properties during the las
five years an average of $~50,O00,00'
a year more than for any precedin.
five year period since the first rail
road was built in this territory. Ev
cry railroad witness who o tn
stand admitted on cross eXaminatio
that they were maintaining thei
properties at a high standard durin
recent years than ever before.
ut will be shown to you that TIL
decline in the percentage of opel
ating income on property investmen'
upon which the carrier are relyin
so strongly, results from a change i
the system of accounting. and nc
from any operating condition.
,Durlng the year 1914, as all pee
pie know, there was a world wild
business depression. In the Unite
States, the grain crops OF the pre-
ceding fail fell over 90O,0OO,Oo
bushels.
Big 1913 Earnings.
"In the exhibits that will be offel
ed. it will be shown that in 191
the net revenues OF the railroads
western territory as d whole, aboN
all operating expenses, amounted
1920. 00O, 900, being the largest Wit
only one Observation-Disclosures til
x first track was laid west OF the Mi
sissippi.
"The averaging net {
these railroads. during the past t'
wears. was $500, oG0, 900 per yea
This yas greater than during any fl,
year period prior to 1913 IN the
whole history. 1t will be proved tn;
the percentage return OF net corpo
ate income on capital stock outstan'
ing in 1913 was more than double
what it was sixteen years ago. ar
five times greater than it was twent
five years ago.
"On the first day of these hea
ings we announced that we expects
10 prove these railroads have be'
building many additions n bette
ments, which they we're charging
operating expenses.
1.-THE magnitude of the sum invol
Oh NOV ha praSned when it is M