Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-03-05
WESTERN RAILROADS ASK
FOR INCREASE IN RATES
Contend That Margin Between In
come and Expenses Is SO Small
as to Affect Credit.
sCHAFF OUTLINES ARGUMENT
If Application Is Granted by l. G. c.,
Sum OF S1OO,OOO,OOO Will BE Add
ed to Revenue OF Forty-One Lines
Each Year.

| CHICAGO, March Accommodating that
! expenses was becoming so small as Sc
riously TO affect their credit, forty-one
! Western railroads began, before Com
! missioner w. NJ. Daniels here day,
! their argument in their application to-
} the Interstate Commerce, Commission
! for an increase I'm freight rates which,
/ 1t was said. would add 100000, 900 to
their annual revenue The argument
was OF n general character. designed to
show a necessity for higher rates on
certain commodities. Later. the rates
on commodities, such as grain. live
stock. packing housc products. coal and
fruits and vegetables. are to be con-
sidcrcd in detail.
The chief contcn Ions Of the roads.
as outlined by G. II. Schan, president OF
/ the Missouri, Kansas and Texas Road:
/ III. NJ. FELTON,. president OF the Chicago
/ Great Western, and &. G. Wright coun.
| sci for the icago-Northwestcrn Road.
! were:
| That all tho railroads should he per-
, mitt"d TO charge enough to enable them
I to pay ut least per cent dividends,
! with u margin over that for surplus
that n present many of the roads are
not able TO pay more than r per cent.
and some cannot pay anything.
! That public demand for elaborate
I passenger stations and freight tor
minals Ind placed burdens on the rail
roads without increasing their revenues.
I That increased equipment. higher
! wages and restrictive legislation had
! greatly increased the expenses of the
roads involved
( After opposing tho demands OF tho
( roads. Clifford Thornc, leading counsel
/ for the shippers, asked Mr.. Schan II It
were not merely on account or the Eu-
ropean war that the railroads were
/ asking increases
MIR. Schan said il was not because of
| tho war. but because OF general bust
ness conditions since 1908. In previous
| years, he said, tho roads were able TO
| borrow money on -, to : per cent
| basis. but many OF them now had to
pay per cent and more
TTORSE ENTERS PROTEST.
AGAINST RATE INCREASE
Entering a protest against the rate
increases asked for. Mr.. Thorne, I'm
| preliminary statement 10 the commits
! sion. said tho Increases would be ap-
! proXimatcly 10 per cent and would in
crease the roads revenue ST500n,0o0 10
| 800. o00. 900 annually.
Mr.. Thorne also outlined tho basis of
the shippers opposition. lie asserted
| that sufficient time had not been al
lowed for investigation. 40 case be-
tween private citizens ever tried before
this commission. or before any other
commission or court or tribunal Of any
character in recorded history, has in
volved such stupenduous sum Of
money rs that which is at stake in
this proceeding" said Mr. Thorne
'rhOuch nur In cation has moi bpsp 4
| completed. that which wc have to Offer
VIII show conclusively as to represent
tative railroad companies In this terri I,
tory:
THAT the credit OF these Western
railway companies is better than that
OF representative companies In any
other line OF business I'm the United
States.
That tho depression Of the past
year was not due 10 freight or pas
senger rates. was not peculiar 10 the
railroad industry, hut applied to bust
ness generally throughout the world:
that, disrega riding extremely prosperous
and extremely lean years, which come
TO all business, these Western railway
companies during recent ordinary
normal years have earned moro. both
gross and net. per mile OF line and
per train than ever before In their
history.
That these companies have been
able to maintain their properties dur
ing recent years at a higher standard
than ever before in their history, and
they have also set aside large sums of /
money out OF earnings for bettcrments
and improvements and outside invest
mcnta. which should have been made |
from capital"