Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-05-27
NEED S6OO,OOO,OOO
TO EQUIP RAILROADS
RACK ED BY WAR
Illinois Central President
Justifics Southern Com
panies' Application.
L.lUST EARN S136,O49,O91
YEARLY TO PAY 6 PER CENT
Based Oh Income of Year End
ing October 81, 1919, Investors
Reaped 7-l0 Of l Per Cent.
DkARTH OF CARS AND ENGINES
INith prc-Wur Equipment Restored
Roads VIII Guarantee Pre-
War Service.
Gust EARN $136,O49,O91
YEARLY TO PAY 6 PER CENT
DhAKTn OF CARS AND ENGINES
With prc-Wnr Equipment Restored
Roads VIII Guarantee Pre-
War Service.

WAsiitNGTON. May .6.-Wi,h
propc equipment the railroads OF the
country can be operated as success
fuly In the future under private
managcment az ,hcy were before
Federal control. Charles II. Markham
pres sident "i the Illinois Central
Railroad. declared today in opening
,hc case ~ the Southern railroads for
higher freight rates before the In
icrsta,c Commerce Commission.
Expenditure OF at least 100000
100 foT new equipment for the ma
!On'S transportation system WAS adj
yccatcd hy Mr.. Markham, who as
serted that nothing was or greater
importance than the Immediate plac-
ns of orders for cars and engines.
iaiiroad history. he said. shows con
nucd progress in efficiency and ac-
ogdingiy the roads should operate
* suCccss!uliy in the future as in
he past IL given the tools in the
lapo Of equipment to work with.
Appeal for Southern Honds.
For The Southern railroads Mr..
iarHham asked an increase In
rcight rates 10 enable tho carriers 10
arm si2i.0i?,0ol annually. which hc
ihimch would represent return OF
pcr cent on the aggregate value OF
hcsc carriers, which he estimated a,
2sr'.iSi.Si7.
The hearing on tho demands Of tho
ailrrsds of the country for Increased
atsN To give an added income OF Il
1000 600. 600 a .'car will he suspend
d FOR week Mt the conclusion of
no carriers testimony. Chairman
lark announced today that the com
rissIon would recess for tina, length
time TO permit the shippers 10
tudy tho evidence presented and
rcparc for ss-cxaminatton
Testimony for the Eastern E+oup
ill be concluded tomorrow by
homas w. liulnc. vice chairman OF
ic Presidents conference committee
II valuation OF the carriers. Ac-
ountinE and traffic experts for the
outhcrn territory are 10 follow.
Southern territory, like every por-
on Of the country, Mr.. Markham
aid. is In need of substantial addl-
ons to Its equipment. In general
,c same situation prevails in the
outh as in the West, he declared.
Needs OF the South.
II might mention. however" he
pntinucd, "tha, there arc portions of
lc South In which II would nc de-
rablc that there should be an cx-
'ntion of railroad facilities as soon
the condition of the railroads and
10 financial condition of the coun-
~ viii permit. There are consid-
'ah!e stretches OF valuable timber
nj agriculture territory in which the
,veiopmcnt is being retarded by the
g, that no railroad lines penetrate"
Statistics for Southern territory. Mr..
khan declared, show that there
e :hiriy-onc class ! roads. thirty
nc class . roads. forty-nine class 2
ads and twcnty-c!ght switching and
rminal companies. comprising n
lcage OF 3s.aol miles out of total
!cage In Southern territory OF about
900 miles
III Is obvious therefore," MIR Mark
I'm added, that the statistics com
led represent 90 per cent of the
lcagc, and feel that the amount
mileage not represented is so small
at the result would not be mate
ally affected IL all the railroads were
aluded."
Mr. Markham presented exhibits to
ow that based on the constructive
ar ending October 81, 1919, the net
ilway operating income of the I4o
ads would have been in round fig
es $4,000. 900. On this basis he
Id the operating ratio would have
en- % per cent and the return on
operiy investment would have been
-tenths OF ! per cent.
Since 1916 there has been only one
neral freight rate increase in
uthern territory. he declared. this
ing thc advance of % per cent in
.ight revenue under general order
the railroad administration In
ne. 1918 1T is wen-known that
iilc that general order carried a
per cent horizontal advance. that
'rease was not actually realized"
Markham concluded.