The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-11-19
cowEN On THE 3. & o.

In speaking of Baltimore & Ohio rail-
road affairs Receiver John X. Cowen
said:
1.-THE general tendency of railroad rates
has been downward, and the absence OF
the power of agreement among railroads
has prevented any control over this stu
alton. A slight shrinkage In the rate per
ton per mile, although not appearing In
the unit Of consumption OF the article
handled. is capable OF playing havoc
with a railroad. II the Chicago & North
western, the c.. B. G. Q. or the Rock Is
land were forced 70 do business at the
rate ton per mile which the present rate
decentralization compels the Baltimore &
Ohio to take, these strong lines would be
reduced to insolvency. On the other
hand, give the Baltimore & Ohio the rate
per ton per mile which these lines receive
and II will earn 5 per cent IN S0OO,OOO,OOO.
one mill increase per ton per mile on the
business now handled by the Baltimore
G. Ohio would not only pay all OF Its fix
ed charges, but wnlld leave a snug cum
for a stock dividend.
Further, had rates remained the same
rs they were in the previous year, In
stead Of a deficit there would be a sur
plus from operations. Yet the decrease
was only .069 part OF a cent per ton per
mile. Surely the consumer who bought
the products thus handled by the pound
reaped no benefit from such a trlfle.
Recognizing this tendency in rates, II
can be overcome only In the handling Of
an increased volume OF business. To put
the Baltimore G. Ohio railroad In such
physical shape to do this has been the
policy OF the receivers. The expendi-
ture Of large sums Of money was neces-
sary to secure this. and with the $1,000
tons OF steel rails to be laid during this
fiscal year the cost for maintenance OF
way will again be large. But these are
permanent improvements, and the emer-
gency calls for the doing In n year what
in ordinary conditions would spread over
a number NJ years.
improvements have been made In
grades and track between Baltimore e
Cumberland az n cost OF about $1,000 0
and this sum Will be saved annually IN
the cost of handling business on this part
of the road. The Baltimore g. Ohio has
suffered for the want Of cars and In still
losing business on this account. Instead
OF securing 5000 new cars, ns were au-
thoriZed, had 10000 been obtained buBl-
ness which Is now being offered and can
not be handled could be carried and tho
earnings would he largely increased.
There has been 100000 worth OF traffic
which we have been forced TO turn down
during the past two munths because we
did not have the Cnrs to haul II. Regular
tariff rates were offered for this business,
and had the road 5000 more cara II could
bring 10 Baltimore during tho month OF
November for export G,00O, 300 DuBnelB Of
grain NJ tho regular transportation
charge, With the present resources OF
the operating department OF the road the
gross earnings could he incrcnecd to $685.
00O,O0O and the business handled without
Il propnrtionntc Increase In expenses.
after reaching q certain level with the
tonnage handled II Is on the business
above that limit that the chief proft1 Of
railroads are made, Despite tho slight
margin por ton per milo, after the level
Of operating expenses 10 reached the
BurpluB business may be carried at n
profit Of 10 per cent. Opposition TO tho
Baltimore & Onto getting additional
equipment haa been coatly TO the prop.
crty. what does tho one hundred and
forty millions Of dollars locked up IN Tho
road and itu operated lines amount 10
without tho vltallzlng effect OF rolling
stock7 Tracks. terminals ana the other
expensive Accomplishments are NJ only
for the Junk pile II equipment Ia lacking
TO develop their fullest uscfulnesa Any
lntorcet In the property which stands In
tho way OF occurring this needed equip
mcnt In pursuing a course unaOund In the
hnanGo of railroads and huftfui 80 their
own lnicreBts."