The twice-a-week Twin Falls times. (Twin Falls, Idaho) 1916-1918, 1917-11-08
American Roads
Want More Money
Railroads Say That The War Costs
Eat Up Everything Controller Will
uams FavOrs Raise.

WASHINGTON, Nov. American
railroads cannot meet the war needs
of the nation under existing rates. This
was the firm declaration today of the
eastern trunk lines and New England
railroads when the interstate com
merce commission reopened the in
creased freight rate case. Advances
in cost of coal, materials and labor
with freight rates still on a pre-war
level-make it impossible for the rail
roads to meet the demands of trans
portation, it was argued.
Gross earnings for the first nine
months of the present year have in
creased $123, 7S9, 900 but expenses have
risen 16S,434000, leaving a deficit of
S57 .291 900, George Stuart Patterson,
counsel for the eastern carriers, stat
ed in opening the argument for the
railroads. He pointed out that the
three largest eastern systems-Penn-
sylvania, New York Central and Bal
timore & Ohio are $685. 92, 900 behind
last year. despite the fact that they
have done $7O.607 900 more business.
For the year ending June 80, 1917, the
net operating income of all eastern
roads fell $4,996,00O short in spite of
an increase in traffic of 1854, 1886 900
over the previous year. Net return on
property Investment for the year fell
from 6:52 per cent to 5.71 per cent.
placed upon the shoulders of the rail
roads tonnage reports of the railroads
war board WI ERE presented These
show that eight billion more ton miles
were produced in the first four months
of the war than in the same period last
year. This gain of Is per cent in ser
vice was made with an increase of
but IL per cent in equipment and
was accomplished entirely by heavier
train loading. The average train load
was increased from 7O5 to 1872 tons.
an increase of IL per cent. Two
freight trains are now accomplishing
the work done by three trains in 1910,
it was declared.
Estimates of the new level of costs,
presented by the eastern carriers in
May were too low, it was stated. They
show that May estimates place the
level of cost at $235, 100000 a year, but
present figures indicate a cost OF
| $270, 100000 while increased revenues
| for 1917 are estimated at 97,00O,OOO
In showing what the increased cost
of coal has done, it was declared that
! the Pennsylvania system burned last
year in it's locomotives 1S,335,0OO tons
at an average cost of $1.23 a ton. The
government fixed prices now are $2.45
and Pennsylvania has for the past six
months supplied its needs at $2.4O
| This means an increase of SS1 10000
a year for this company in coal alone
Labor is a serious problem, the car
riers contend. They allege that the
Adamson law costs the eastern roads
$36,0OO,0OO a year, while advances in
classes of labor other than that af-
fected by the AdamsOn law have in
creased the pay rolls $660O0,000
Great stress was also laid upon the
increased costs in maintenance.
Controller of the currency Williams
unexpectedly injected himself into the
railroad freight rate situation this
afternoon when he issued a statement
favoring the proposed increases in
rates.
The controllers statement is in
! terpreted as putting the administra
tons stamp of approval on the move
to give the railroads of the nation in
| creased revenues.