The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-05-07
H. C. L. HITS R. R.
CONTINUED from Page One.l
fact, cover the higher expense.
Shippers on "E'iring Line"


Shippers who oppose the increases
were represented by counsel who in
tended later to show that railroad
earnings have been proportionately
high Notwithstanding what is alleged
to be over-c apitaliZed and that at
best only Il few roads may need in
creased revenues The interstate
commerce commission has very large
ly put the responsibility for showing
the need of advanced rates squarely
on the railroads.
Would Fall Short of Expenses.
Eastern railroads at the opening of
the hearing stated that the advance
sought would fall $4,000 900 short of
the S217, 100000 increase in 1917 oper-
ating expenses over 1916.
Cost of coal, wages and materials
have gone up rapidly in the last year
or two, declared the eastern roads.
Higher rates are necessary to main
tain their credit and to make efficient
service possible. they said.
The proposed 15 per cent advance
would yield all railroads a sum esti-
mated at between $300,000,00O and
$500. 900 based on last years rec
ord earnings.
To support their contention that
such a raise is vital, they presented
figures running into millions and bill
lions.
The cost of operating necessities, in
Guiding labor, has scared so tremend-
ously, they declared, that practically
all their surplus earnings would be
absorbed this year.
Payroll 40 Million.
In their opening statement, the rail-
roads cited their 1915 expenses for
coal, wages and materials at $1,0i5,-
600, 000 their indicated 1917 expenses
for the same items at 81, 232, 900, 900,
or an increase this year of $217,000,-
600. Wages alone in 1915 were SOL
000.000s while the indicated 1917
wages will be $770,000,000, due to
higher rates under the Adamson law
and to other increases.
The high cost of coal absorbs an
aided S5S,00O,0O0 on the eastern lines.
the roads representatives said, while
advanced material costs mean about
$50, 100000 additional, provided proper
III pkeep is maintained.
The $217,000,0 900 increase was based
on items which cannot be Stably de-
teTn.ned while the roads argued th@t
they need much new rolling stock. all
o. which is SO to 100 per cent higher
than a year ago.
Five of the big eastern system es l.
mated that. even with the desired
rate increases, they would still be DE
hind the board" as a result of the far
higher operating costs.
Sec Only Per Cent Profit.
The lines argued that despite the
record 1916 net earnings, the return
on the investment in the eastern lines
was but 6.53 per cent, whereas the
average income on property invest
ment for the past four years of record
gross earnings was only per cent
For some years, the roads said, the
rate of income has been steadily drop
ping, due to the fact that rates of
service have been practically station
airy while costs of operation have con-
tinued their upward trend. More%
over, the quality of service has been
efficiently heightened, the roads con-
tended.
Claim Request Is Modest.
Detailed reports were submitted by
the five largest eastern systems today
tending to show differences in the es-
timated increases in expenses for 1917
and the increased revenues from the
requested rate advances as follows:
Pennsylvania - Estimated increase
in expenses ISL, 100000; rate against
an increase asked. $39,141,OoO.
New York Central-$42, 100000
against 3S.247,oOO.
Baltimore & Ohic-S16, 500, 900,
against $12.7s6.O00.
New Haven-s12. 30O.O 900, against
$5.1O2,0OO.
Erie-$1o.ooo.oOO against $685.