The Detroit times., 1917-03-14
RAILROADS
BEGIN HIGH
FARE FIGHT
Submit Figures To
Prove Two-Cent-Mile
Rate Is Unfair
RY W. .. CALNON.

Sta6 Correspondent DETROIT Times)
LANSING. Mich. March 1.-THE
battle OF the railroads for the knock
ing out OF the Michigan two-cent
passenger rate and the substitution
OF a two and one-half-eent rate in
the lower peninsula and n three-cent
rate In the upper peninsula. began
this morning at q public hearing be
fore the joint railroad committees OF
the house and senate.
The railroad men were headed BY
J. X p HuKhart. OF Grand Rapids,
Of the Grand Rapids a Indiana rail
road. while their principal speaker
for this mornings hearing was W. G.
wishart. of New York. chairman CT
the accounting committee OF the Ma
tional Railroads association.
Senator r. v. Smith, chairman OF
the joint committee. believes that
the hearings will last all this week.
after which the committees win take
Up the bills behind closed doors.
considering minor rail bills as well
as the rate bill IL Is predicted that
the bills will all be reported out.
Secretary Charles r. Webb. Of the
Michigan Railway association. wac
az today's hearing with a large pack.
age OF letters In support OF the
roads claim that they are entitled
20 more income from passenger
fares. Some OF the letters are said
70 be from Detroit shippers. who "a.
yor the increase on rates charged
to passengers. Webb said that big
employers OF labor thru the state
are coming out In favor OF the rat,
increase az a means OF helping the
roads survive the present rule OF
high prices.
W. c. Wishart. OF New York,
chairman OF the railroad accounting
committee. in discussing the neces-
sity for increased passenger fares,
said:
Two methods were considered
for presenting the facts in this case
~ AliE MAtnAAAA ArkArANhAAF-
First. an expensive and highly
technical cost study to prove ths un-
remunerauye or connscatory ehsrac.
ter OF the two-cent fare Law:
Second. the financial history OF
the Michigan roads. presented in
simple form, establishing the fair
ness OF the proposed repeal OF the
existing law. without requiring thu
actual examination and extensive an
alysis that would be necessary "a
The case ~ cost study
AS this IL law.making body with
POWER 10 exercise its Judgment. and
not a court limited 10 the interpretE-
zion Of the law. the second plan was
considered the better"
Mr. Wishart said 70 carry out the
work. a committee OF railway ac-
/ countants was appointed % bring TO
gethsr the necessary data and its
recommendation are embodied IN
I tabulations. covering period Of
I railroad operation for n years Al
ter the tables were carefully prepar-
I Cd. he said. under the supervision OF
tho com mittee. the individual state
1 ments we're sent 60 the auditors OF
The several railroads for check. 40
that they are as nearly correct a.
II was possible 20 make them.
Twenty-Five typical Mlchig
foads. with more than 80 per cent
Of their mileage in this state. we're
used BY Wishart In making compar.
isons and deductions "a 10 earnings
and operating expenses. The aver.
age mileage. he sa!d. Ia Michigan
was 81 per cent
The revenues OF the % typical
roads" he said. have Increased
about 81 per cent during the period
1905 10 1918. Passenger revenue in
creased 30 per cent Express rev
enue increased more than 100 per
cent. while mail revenues grew only
10 per cent. This relatively light in
crease in mail revenue reflects the
successive cuts In pay that the car.
Tiers have suffered at the hands OF
the postofnee department. rather
that a lack Of growth in the guam.
tity Of man handled"
Operating expenses. wishart said.
had increased from 1905 70 1915.
over 81 per cent.
Wishart showed that the revenue
per train mile increased - per cent.
while passenger revenues increased
only 30 per cent Expenses per train
mile, he claimed, increased - per
cent.
The per cent OF net operating in.
come on property investment. he
said. vss: grouped in three-year Pc
RODS. 1905, 1905 and 1907. s.is: 1875
1909 and 1910. $50, 1911. 1912 and
1913. ala, and In 1914 end 1918.
only i93
a significant fact 10 be noted !"
Wishart said, rs thAt IN no year
since 1910 have these roads, a. a
group. earned enough from opera.
tons 10 pay their nxed CHARGES"
Relative 10 thsse roads paying
dividends. wishart said the Avsraxe
proportion OF stock paying dividends
in ~ years, ending IN 1915. was only
1902 per cent. The Psre Marquette
road. he said. had been eliminated
IN making up the table on dividends.
| The remaining - roads. he con.