The Birmingham age-herald., 1920-05-27
GOOD SERVICE WILL FOLLOW EQUIPMENT,
 SAYS HEAD OF l. |.
Expenditure of S6O0,000, 900 for New Rail Equipmet
 Is Advocated by Markham
By Associated Press

Washington, May 26.-With proper equipment. the railroads of the coun- try can be operated as successfully in the future under private manage ment as they were before federal con trol, Charles H. Markham, president of the Illinois Central railroad. de- clared today in opening the case of the southern railroads for higher freight rates before the interstate commerce commission
 Expenditure of at least $500, 900 900 for new equipment for the nations transportation system was advocated by MT, Markham. who asserted that nothing was of greater importance
 than the immediate placing of orders for cars and engines. Railroad his- tory, he said, shows continued prog ress in efficiency and accordingly the roads should operate as successfully in 1 the future as in the past if given the tools in the shape of equipment to work with.
 For the southern railroads, MT. Markham asked an increase in freight rates to enable the carriers to earn $136,O4@,09l annually which he claimed would represent a return of per cent on the aggregate value of these car Fiers. which he estimated at $2,267,4S4.- . I SAT.
 TO SUSPEND HEARING The hearing on the demands of the railroads of the country for increase rates to give an added income of a. billion dollars year will be sus- pended for week at the conclusion of the carriers testimony. Chairman Clark announced today that the com mission would recess for that length l of time to permit the shippers to study the evidence presented and prepare for cross-examination.
 | Testimony for the eastern group will be concluded tomorrow by Thomas w. l Hulme, vice chairman of the Presi- dents conference committee on valua- ton of the carriers. Accounting and
 traffic experts for the southern rail- I roads are to follow.
 l Southern territory. like every DOT tion of the country, MT. Markham said, | is in need of substantial additions to
 it's equipment. In general. the same
 condition prevails in the south as in | the east. he declared.
 SOUTH NEEDS ROADS T might mention. however" he con- l tinued '"that there are portions of l the south in which it would be desir-
 able that there should be an extension | of railroad facilities as soon as tha condition of the railroads and the
 financial condition of the country will | permit. There are considerable
 stretches of valuable timber and ag-
 ricultural territory in which the de- velopment is being retarded by the l fact that no railroad lines penetrate.'
 statistics for the southern territory, MT. Markham declared. show that there
 are 31 Class roads. 39 Class roads. i 49 class 3 roads and 2s switching and terminal corspanies. comprising mile-
 age of 3S.901 miles out of total mile- age in southern territory of about 43,- 1 900 miles.
 | Tt is obvious, therefore" Mir. Mark | ham added that the statistics com piled represent 90 per cent of the mile .
 age and I feel that the amount of mileage not represented is so small | that the result would not be materially
 affected if all the railroads were in- cluded.''
 MT Markham presented exhibits to show that. based on the constructive year ending October 31. 1919, the net i railway operating income of the 142 roads would have been in round fig
 ures 6.000 900 On this basis he | said the operating ratio would have ! been s2 per cent and the return on property investment would have been
 seven-tenths of 1 per cent.
 1 Since 1916 there has been only one general freight rate increase in south : ern territory. he declared. this being the advance of 25 per cent in freight revenue under a general order of the railroad administration In June, 1918
 Tt is well known that, while tha; Lgeneral eorder carried 25 per cent
 horizontal advance. that increase was
 not actually realized" Mir. Markham
 concluded.