Evening capital news. (Boise, Idaho) 1901-1927, 1917-05-07
Figures Running Into the
Millions Presented to In
terstate Commerce Com
mission Showing Heavy
Expenditures.
HIGH COST OF COAL
ONE OF THE FEATURES
Advance in Wages Not the
Only Cause for Higher
Tariffs-Detailed Reports
from Five Of the Leading
Eastern Railroads.

Washington, May 7.-Eastern rail-
roads today pleaded with the inter.
state commerce commission for q II
per cent increase in rates.
To support their contention that such
raise is vital. they presented figures
running into millions and billions.
The cost of operating necessities. in.
Guiding labor. has scared so tremend
ously, they declared, that PRACTICAL,
all their surplus earnings would BIZ
absorbed this year.
CITE THEIR EXPENSES.
In their opening statement, the rail
roads cited their 1915 expenses for coal
wages and materials at $1015, 900, 900
their indicated 1917 expenses for the
same items at 1892 ,o00, 900, or an in
crease this year Of s217,0 ,00O Wages
alone in 1916 were SOL, 1000, 900, while
the indicated 1917 wages will be $770,-
100000, due to higher rates under the
Adamson law and to other increases.
The high cost of coal absorbs an
added $5S,o0o,OOO on the eastern lines
the roads representatives said. while
advanced material costs mean about
*9O,00o.ooo additional. provided proper
upkeep is maintained.
NEED ROLLING STOCK.
The $217,o00,000 increase was based
on items which cannot be stably de-
termined, while the roads argue that
they need much new rolling stock, all
of which is so to 100 per cent higher
than a year ago. Five of the big east
ern systems estimated that, even with
the desired rate increases. they would
still be behind the board" as a result
OF the far higher operating costs.
The lines argued that despite the re-
cord 1916 earnings, the return on in
vestment in the eastern lines was but
6.53 per cent, whereas the average in
come on property investment for the
past four years of record gross earn
ings was only per cent"
INCOME DROPPING.
For some years, the roads said, the
rate OF income has been steadily drop
ping, due to the fact that rates of SER
vice have been practically stationary
while costs of operation have continued
their upward trend. Moreover, the
quality of service has been efficiently
heightened, the roads commended.
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-Estim increase in
expenses, $4,000, 900, rate against an
Increase asked, $39,141, 900.
New York Central $42,7o0Ooo.
against $33,247,o0o.
Baltimore & Ohio-$16, 500, o00. a gainst
s12. 1885, 900.
New Haven-s1a.soo.oo 900, against s5,-
lO2, 900.
Erie-$10, 900, 900, against ss.s15 900
SMITH URGES INCREASE.
Urging the 10 per cent increase. AL
red Fl. Smith. president Of the New
fork Central lines, declared the rail-
'oads might break down unless reve-
tues were increased.
After pointing out that prices as a |
whole were higher, Smith said:
The railroad must pay rising prices
or what is used and it can with the
greatest difficulty raise it's own rates
o offset those. BY such a process,
equity in the property is slowly but
'urely extinguished and If it is con-
inued. the finest transportation ma
hine will eventually be broken down"
He asserted the roads would be put
o extra expense by having to build
racks at mobilization camps and erect