Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-11-19
A TALK WITH Mr. co AN. ]


What He Says About the Existlne Condi-
tion Of tho Baltimore = Ohio Property.
In speaking OF Baltimore & Ohio railroad
affairs yesterday. Receiver John K. Cow
en- said:
The general tendency Of railroad rates
has been downward, and the absence of
the power of agreement among railroads,
has prevented any control over the situa-'
ton. 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. If the Chicago and Northwest
ern, the c.. B. & Q. or the Rock Island
were forced to do business at the rate per
ton per mile which the present rate de-
moralization 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 it
will earn five per cent. on five hundred
millions of dollars. One mill increase per
ton per mile on the business now handled
by the Baltimore & Ohio would not only
pay all of its fixed charges, but would
leave snug sum for a stock dividend.
Further, had rates remained the same
as they were the previous year, instead
of deficit there would be a surplus 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 trifle. Recognizing this ten
dency in rates, it can be overcome only
in the handling of an increased volume
of business. To put the Baltimore & Ohio
into such physical shape to do this has
been the policy of the receivers. The ex-
penditure of large sums of money was nee
essary 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 a year what
in ordinary conditions would spread over
a number of years.
improvements have been made in
grades and track between Baltimore and
Cumberland at cost of about $100,0s0 and
this sum will be saved annually in the cost
of handling business on this part of the
road. The Baltimore & Ohio has suffered
for the want of cars and is still losing
business on this account Instead of Sc
curing 5000 new cars, as were authorized,
had 10000 been obtained business which
is now being offered and cannot be handled
could be carried and the earnings would
be largely increased. There has been $780,,
coo worth of traffic which we have been
forced to turn down during the past two
months because we did not have the cars
to haul it. Regular tariff rates were Of
fered for this business, and had the road
5000 more cars it could bring to Baltimore
during the month of November for export
100000 bushels of grain al the regular
transportation charge. With the present
resources of the operating department of
the road the gross earnings could be in
creased $33, 900 and the business ham
died without a proportionate increase in
expenses.
After reaching &, certain level with the
tonnage handled it is on the business
above that limit that the chief profits of
railroads are made. Despite the slight
margin per ton per mile, after the level of
operating expenses is reached, the surplus
business may be carried at a profit of so
per cent. Opposition to the Baltimore &
Ohio getting additional equipment has
been costly to the property. What does
the one hundred and forty millions of dol
lars locked up in the road and. its operated
lines amount to without the vitaliZing eff
feet of rolling stock? Tracks, terminals
and other expensive accomplishments are
fit only for the junk pile if equipment is
lacking to develop their fullest usefulness.
Any interest in the property which stands
in the way of securing this needed equ p
ment is pursuing a course unsound in the
finance of railroads and hurtful to their
own interests