New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-06
Controller of Currency San
Present Scale Is Not
Sufficient
Believes Conditions +
Warrant Concessior
National Banks HoIdin,
Securities Which Show
Steady Decrease

WASHINGTON, Nov. John SIS.
ton Williams, Controller Of Curre,.,
in a formal statement to-day, declars,
that present railroad rates are in,us.
cient TO maintain the credits OF ~
roads, and predicted that the Inteuu.
Commerce Commission would grant Il.
revision now being asked by the road,
Basing his statement on the "a
that national banks hold great Qua.
titles of railway securities which k,,.
been steadily depreciating, the Cor.
troller said:
When the railroads shall hay. lsl
frankly before the commission the fae.,
and figures which will show 40 co,.
clusively the extent TO which the rat.
now in force are insufficient to msinta,
the credit of the roads and 70 enab.
them TO perform efficiently their publ.
functions under the present unusual
and extraordinary conditions. we h,y.
no right to doubt that the decision
which the commission will reach viii
be one which its superior knowledge
and painstaking study Of the whol.
situation will in every way justfv,
and that the relief needed will b
promptly accorded.
IF a way cannot be found row "a
reduce promptly the prices Of mat..
rails and the cost of labor to normal
basis. and this, for the present, h
hopeless, it seems clear, on the fact,
before US, that n revision and modih.
cation of the fabric of rates to NEE,
the new conditions have become i'm.
perative.
IF the relief which is manifestly
required at this time is granted. \
believe that confidence in our railroad
securities will be revived and A bas,
established for new financing and 70,
proceeding with new development and
construction work, which Is now 20
greatly needed. The benefcient insu.
ence and effect OF such action wou1
be felt instantly throughout the entir
country"
Representatives Of transcontinents
railroads yesterday began the task Of
showing the Interstate Commerce Com.
mission why their freight rates iron
coast to coast should be increased
along with proportionate readjust
ments of rates TO intermediate points
The taking Of testimony began at
hearing before Examiner Thurtell, o.
the law department of the commission,
in Room 1907, City Investing Building.
Every railroad expects 10 produce large
quantities of documentary proof Of the
claims Of its officials. IL is probable
that the bearing will be a long one.
The chief conteltion Of the roads 10
that the increase in operating e1-
penses, consisting chiefly in additional
wages under the Adamson law, in
creased cost Of fuel, increased costs Of
all construction materials and high
Federal war taxes. has made 4 I'M
possible for them to operate prohtably
at the present rates.
WASHINGTON, Nov. 5.-Essteu
railroads laid before the Intersts;s
Commerce Commission to-day their
case for substantial increases in freight
rates TO meet increased expenses under
war conditions.
The presidents of seven roads and
counsel for many more, summoned ~
the commission 10 make statements in
case. Joined in submitting that, in spite
Of increased gross earnings, railroad
net revenues have decreased 70 such an
extent that even granting Of the full Is
per cent increase would not provide fo-
necessary Improvements and fair re-.
turn on invested capital.
Clifford Thorne, representing I'll
companies, grain dealers and livestoc {
- Il -. -. -
while his clients opposed any increase
they were entirely Wiling 20 abide By
the result of the investigation. Ross
D. Rynder, Of Chicago, spokesman for
the packers, said the packers would rot
object TO percentage increase on al
traffic. Other shippers took virtualy
the same position, although representa-
tives of the Indiana Limestone Associs-
ton wanted their rights 10 protest Te''
served
Chairman Hall announced that he
commission expected TO have all evil
dence in by the end of next week.
Thursday, November 10. was set for
cross-exsmination OF such OF the rail-
road witnesses as shippers may desire
TO recall, and on Saturday. November
II, argument will be heard.
In the mean time Examiner Disoue
will hold hearings here on different
phases of the case. as follows;
November 7, general commodities. 90
gether with Rutland and Lehigh
Hudson rates on livestock in trunk Inc
territory; November Q, petroleum ana
its products and grain and It's PROD.
ucts; November Is, lumber and cemen'
shippers interested in the 10 per cent
case; November Is, shippers testimony
Ask Passenger Increase
An important development was ths
filing by railroads entering Boston OK
applications for authority 20 increa,e
passenger rates, involving some MILL
ions Of dollars additional revenue
Other New England roads not entering
Boston. il was announced, VIII NE sun
liar applications.
when in May the Eastern carriers
asked for Is per cent rate lneteSsSS
they estimated that wartime prices ',
labor and materials would ineIesnsNS
their operating charges by S2So 'oVo'9Vv'
Later compilations, presented to,c 1oo
indicated an increase OF - 'V'VVV'V'N
based on the 1916 volume OF business;
President Res of the PennsyiVAh,s
rredicated his plea for an advance "
the following existent difficulties u
the roads: ~
Continuous increases in the cost o.
labor. fuel, supplies, taxes and OF ''1
timing new capital;
Inability 20 secure and retain en-
cient labor;
"Curtailment OF maintenance eN.
penses. which curtailment IS tus ~
part 10 inability to secure neeessSV
labor and materials;
Decrease in net operating ineons'
Notwithstanding large increase IN OF
Grating revenues, in property inves''
ment, in carload and in trainload,