Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1889-05-09
Atchison 5 Exhibit.
1t Makes q Poor Show for the
Stockholders.
A HEAVY DECREASE IN BUSINESS

Laid to Various Causes, Among Them Too
Much Legislative Interference and "Un-
reasonable" Demands for Low Rates
Further Testimony Before the Senate
Committee-President Adams, of the
Union Pacific, Tells the Senators What
He Thinks.
Boston, May 9.-The annual report of the
directors of the Atchinson, Topeka and Santa
Fe Railroad company for the year ended
Dec 81, 1888, as compared with the year
1887, shows gross earnings at SIS, 6l2, 9l3; de-
crease S2,sIS, 453. Operating expenses, in
GLIDING taxes Sll ,027, l6l; increase, S61S, 707.
Net earnings, deducting taxes, 81, 5S5, 95l !;
decrease, s., 461 1850 OF the decrease in
gross earnings. amounting to Is per cent,
sSol,OOS Is on passenger, and 81, 054, 300 on
freight, business The company operates
1905 miles of railway and has net floating
debt on the entire system of So, 573, 1874.
Accounting for the Trouble.
The reduction of business is attributed
first, to unusually light crops for two years,
and consequent depression of business in the
territory traversed; second, the construc-
ton of new lines in Kansas by other COM
panies, tapping nearly every place of conse-
quence on the Atchison lines and dividing
business heretofore controlled by the Atchi-
son; reductions to meet rates made by these
competitors for common points involved I'M
der the Interstate commerce law, and pro-
portionate reductions to and from nearly all
other points on the road This, and the pro-
hibition of arrangements to divide business
have caused large losses.
Too Much Legislative Interference.
The report discusses the rate question at
great length, and takes the ground that the
prevailing legislation and the public senti-
ment in favor of lower rates and against
pooling are unjust toward vested interests,
and in the long run will be seen to he against
public policy.
The Interstate Commerce Act.
The report continues: "The recent amend
ment to the Interstate commerce act, by
which reduction of rates without notice is
forbidden, is a recognition of the principle
| that unrestrained competition is an evil, and
it is hoped that it will be followed by other
needed changes The long and short haul
clause of the act has had the effect to build
up certain towns and cities at the expense of
others, to dissrrange the commerce of the
country, to force business into unnatural
channels. and to enlarge the traffic of few
lines, while GRIPPING and destroying that of
many"
Other Difficulties to Meet.
"In addition to these discouraging condi-
tions rates have been established by law in
several of the western states which are ruin
ously low 1t is but natural that Nebraska
and Kansas should object to pay what trans
portation is worth when Iowa and Illinois
can get it for less. The result is a constant
pressure upon railroad companies to make
their rates conform to those established by
law in neighboring states"
Unreasonable Demands.
Another influence which injuriously affects
rates is the difficulty of maintaining the
price of transportation when the price of
everything else has deprecated Hard times
| increases the difficulty of maintaining rates
The report discusses the effect of hard times
| on the grain and coal rates and takes the
ground that the pressure for still lower rates
is unreasonable.