Evening star., 1920-05-25
EQUIPMENT
ONE YEAR BEHIND,
SAYS Mr.. WILLARD
Head of B. and O. Declares
System Was Returned in
Poor Condition.


lists on the railroads of the country
and that the Baltimore and Ohio rail-
road was not returned to it's owners
by the government in a condition as
good as that when federal control
began were the two main points
brought out in the cross-examination
this morning Of Daniel Willard. pres
ident Of the Baltimore and Ohio. at
the hearing before the Interstate
Commerce Commission for increased
re, enue Of more than $1,000. 900. 900.
Mr.. willard resumed the stand this
morning and answered questions ask
ed by Glenn +. Plumb. representing
employees. and Clifford Thorne of
Chicago. representing shippers asso-
Citations.
In his questions Mr.. Thorne sought
to bring out that alleged poor condi-
tions on the railroads We're partly the
result of government ownership. and
not the fault of the railroads or the
shippers. and that it therefore should
be made up by the government and
not by the shippers.
Government Not Blamed.
Mr.. Willard refused, however. to
blame the government The war was
responsible. he stated. and brought
with il the many difficulties which
had to be met by the Railroad Ad-
ministration.
Questioned by Mr.. Plumb regarding
the efficiency which may now be ex-
pected that the roads are again in the
hands of their owners. Mr., Willard
stated that they might be expected to
increase their efficiency and reduce
expenses. Demands for greater serv-
ice, however. will prevnt saving in
expenses Immediately, he said.
Although business was m,ch better
1T,
year than it was last, MIR. Willard
stated that ever-changing conditions
prevent any forecast of what may de-
velop.
The tendency of the railroads is to
increase the volume of traffic, Mr..
Willard replied in answer to questions
| by Mr.. Thorne. but not during this
year. During the war, he stated, COM
bined efforts of the various govern
| mental agencies resulted in freight
cars being loaded to their capacity
These influences ceased after the war.
he said, and the average load in 1919
was less than in 1918. This is not
reflection on the railroads, Mr. Will
! lard stated, but is due to the cessa-
ton of certain influences.
Under private control efficiency in
| the roads operation will eventually
cause savings in expenses. Mr. Will
lard stated. Fast freight service must
| be resumed. however, and passenger
mileage extended. This will preclude
any savings at present. it was stated.
Increased Passenger Rates.
Replying to question by Mr.. Plumb
regarding the feasibility of increa sing
passenger rates to meet expenses, Mr..
Willard stated that on the Baltimore
and Ohio, as far as he could determine
to cover the amount needed passenger
rates would have to be increased cents
per mile. He said he did not know the
wishes of the public on this question.
Asked concerning the property invest
ment accounts of the carriers, Mr. Will
lard said it is his belief that the in
vestment in the Baltimore and Ohio is
fairly reflected in the book accounts He
declared that the property investment
accounts of the carriers fairly represent
the value of the properties.
| Concerning the Baltimore and Ohio, he
| said that, based upon his own personal
knowledge, it was his opinion that the
| road could not be reproduced at the book
| value. He said, however, he had no final
figures.
To BE Heard Today.
G. NJ SERVER, vice president of the
Baltimore and Ohio. and Samuel Rea of
the Pennsylvania lines will continue
the presentation Of arguments for the
eastern carriers at the hearing this aft
ernoon.
i"o stdteHheIts at lne nearing yes
terday, one by Daniel Willard, president
of the Baltimore and Ohio, and the other
by Howard Elliott of the general rate
committee of the Association of Railway
Executives. were received with particu-
lar interest by the commission.
In the course of his testimony Mr.
Willard stated that increased freight
rates owuld not tend to increase living
costs, but, on the other hand, would
have the opposite effect. Higher rates
no said. would help the railroads to i'm
prove and buy equipment, and through
the quick shipment of freight would
tend to lower the cost Of commodities by
doing away with delays in their ship
ments.
Mr. Elliott stated that the more than
.000. 600. 900 asked by the railroads in
additional revenues would not include
any increase in wages decided unon bv
the railroad labor board