Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-05-25
Representatives of Shippers
Attempt to Get Executives
to Admit That Emergency
Doesn't Affect All.
ONE RAILROAD DECLARED
DIVIDEND, SAYS OFFICIAL
Vice President Of Q. & C.
Says Directors Regarded II
as a Duty to Stockholders
in Reply to Question.

tbr hcHNiNo joUNNhl bPHCtNL LEASEO W1RHl
Washington, May 24.--Railroad ex-
ecutives from widely separated sec
tons of the country appeared today
at the Interstate Commerce commits
sion hearings on the carriers petit
ton for Is per cent advance in
freight rates and submitted to vigor-
GUS cross-examiEation at the hands
of counsel for the shippers.
The shippers representatives prob
ed into the finances OF the railroads,
trying to get the executives to say that
the emergency the railroads claim
exists does not effect every line.
#. c. Powell, vice president of the
Queen & Crescent in response to
questioning, said that last week his
company declared "a regular dividend
of per cent Oh The common stool.
and an iStf-. l1Esdsai OF 80 psr cert.
''You claim an emergency exists"
said the questioner. IF that is so why
have you seen fit TO further deplete
the funds of your road by declaring
an extra dividend and is the burden
which has caused you to come before
this commission not sufficient to have
caused you to abandon that extra div
tdend?"
Mr. Powell said the dividend was
regarded by the directors as duty to
the stockholders.
Costs Increased.
Henry Walters. chairman of the
board of the Atlantic Coast Line, was
asked at his opening examination how.
much stock of the Louisville g. Nash
vile his line controlled He replied
that it was more than SO per cent. IT
was a fact, he said, that the increase
In net revenue Of the Atlantic Coast
Line was greater during the first
three months Of this year than in the
corresponding period Of 1916, but ad-
ditional expenses which the road
must stand did not show in the re-
ports. Mr.. Walters added that while
there was no doubt that the net reve-
nues of the line would be larger this
year than last, they would not be suf.
ficient to meet the increased costs.
us that a prediction based upon
proba babilties?' he was asked.
mo" was the reply. 1T is based
upon contracts"
The witness said the accumulated |
surplus of the Atlantic Coast Line was
about $35.000,0 900, OF which 100000
300 was in cash, and OF that sum $14,-
100000 had been appropriated. He
agreed with the examiner that the
partial purpose OF surplus was to
ide railroads over lean years and
meet emergencies.
FayOrs Pooling Cars.
''In view of the fact that you con-
rol, through stock ownership, at
east 81 per cent of the stock of the
louisville & Nashville, would it not
,e practicable, in order to meet the
,yisting situation, and in view of tho
act that the Louisville & Nashville
'arned 10 per cent last year, to have
hat line pay you more dividends?"
dr. Walters was asked.
1--WE have never undertaken to con-
rol the Louisville G. Nashville" he
eplied.
Mr.. Walters said he considered the
atlantic Coast Line was better situat-
d than some of its neighbors.
Howard Elliott of the New Haven
nd member of the railroad war
oard. told Clifford w. Thorne, rep
esenting shippers who cross-examin-
d him, that he favored some scheme
( pooling cars and terminals should
! be necessary In the interests Of ma
ional defense. He also believed II
esirable that a government agencyl
e created to tell the railroads just
that was desired of them.
He was questioned regarding a set
economy suggestions issued by the
,ar board, These proposed such
economies as speeding up repairs on
and cars. increasing the
unning time of locomotives. reducing
oiler repairs and more careful steam
lg.
Will End Today.
Mr.. Elliott said he thought most of {
le changes suggested were practic- G
BILE; that they were intended to re-
alt in increased efficiency OF the |
and that up to- a certain |
pint they did not contemplate any il
EDITIONS to capital. He said the war q