The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-14
EVERYTHING UP BUT RATES.
an EGAN SAYS RAILROADS SHOULD
RE ALLOWED TO RAISE THEM.

u,s to Pay the Manufacturers
nigh Prices for Clothing and the
uaiIroads That Charge the Same
old Rates While Having to Pay
nearly for the Materials and Sup
ultes They Use-Facts and Figures
Given Regarding the CentraPs
Earnings and OperatiOns-The Adj
vances Railway Supplies and Ma
,eriaIs Have Made.
Everything is going up except railroad
.otes That is what Vice President John
A, Eean of the Central Railroad thinks.
ua certainly has good ground for the be-
rs when he considers the many COM
podities that have advanced in price dur
ing the past year. Worst of all, accord
inp TO Mr.. Egan's views, the things on
which the advance has been greatest are
those most needed by railways in build
inc and operation, the advance to the
roads in the cost being in nowise ac>
companied by an increase in the roads
earning powers to offset it.
MIR. Egan was seen yesterday. He had
inst read an editorial in Inc Morning News
entitled "Too Much Prosperity" in which
the poor man is set forth as being but
little prodted by the increase in prices
from which manufacturers of goods are
reaping the benefit.
Between the poor man of the editorial
and the railroads of this section there is
so strong an analogy that Mr.. Egan was
absorbed in the contemplation of it. Re
ferring 10 the article, he said: IF the
writer had placed the railways in the same
&C ba ms a py011l6 hax
drawn a picture of the future railway
eiuation about which we feel very appre-
heuSive."
'What is the present situation, Mr..
Fgan. among the railways in the South as
to their earnings and volume of business
compared with last year?'
In answer to the query Mr.. Egan talked
at length, giving facts and figures that
prov4 The rather undesirable situation in
which The lines find themselves. The
records of the company show that the Cen
tral win need to derive increased revenue
fit is to continue paying the high prices
manufacturers now receive. Following IS
what Mr.. Egan had to say:
"On lines that are largely dependent on
local business-as the Central-the move
nent of cotton is very much less than
al this period last year, consequently our
gross earnings are not as large he re-
piled The general business, which in
CIutltS IQIlDeI BGuEIdi S4CAdiiuiSti COt-
ton factory products, etc, Is greater than
last year but at this time In 1898 we had
number of camps of United States SOL
diers located on the line, which were the
means of largely increasing our business
10Th freight and passenger; but of course
this source of revenue was exceptional in
that IL was of a transitory character.
"On through trunk lines similarly stu,
ated as the Louisville and Nashville and
the Southern, their earnings have increas-
cd principally on account of their long
hauls and the activity in iron lumber, cot
ton factory and other industries. Again
the cotton factories have been the most
active buyers of cotton, and but small
amounts, so far of the fleecy staple have
sought the South Atlantic or Gulf ports
for export
1.-THE future outlook for railway bust
ness and earnings is good as 10 volume of
freight and gross earnings, but the adj
vance in prices of supplies and material
used in operating and maintaining rail
ways, as well as in construction of the
same, Will more Than offset the increased
revenues derived. For example, steel
rails that could be purchased a year ago
at the mills for SIS, or less, per ton can
not now be purchased for less than S3S and
$40 This would make the rail we are now
using cost $500 per mile more than last
year and this, in round numbers, would
equal siXty-siX per cent of the gross earn
ings per mile on the mileage of the Cen
tral system for the fiscal year ending
June 2i, 1899. Locomotives have advanced
from 5000 each TO $13.500; box cars from
so to Seo0. Iron. lumber, fuel and all
supplies have advanced from twenty to
ono hundred per cent.
Many railways contract for their year
ly supplies at the beginning of the cal
endr year Our purchase of supplies for
me calender year OF 1899 viii amount 10
$l.1G5 226
During the fiscal year ending June 3d.
1893, this company handled 2199,O4S tons
OF revenue freights, and obtained from
the same 1.044 cents per ton per mile. II
we nave the same tonnage during the ifs
cal year ending June, 1900, and increase
our expenses for material and supplies 60
per cent, TO prevent a decrease in our
net earnings we should increase our av-
erase rate per ton per mile two mills.
10 place the railways on the same scale
OF prosperity that all other industries are
enjoying In this country, an advance in
rates should be agreed to on all classes
ol transportation. That is the only way
III which the increased expenses can be
met statistics show that railway trans
portation in the United States is less than
N any other country, and the time is now
opporlune to assist the railways to bear
their burdens.
AS everything in the railway line, d.
reciy and indirectly, has advanced, ex-
yep me charges for transportation, there
would be nothing unfair or arbitrary in
@uYancing the rates to a basis that would
elaoie the railways to show net earnings
az ue end of each fiscal year. the same
Us o'ner industries are doing; and there
osn ne no question but that to each patron
y. tle railway companies the amount
"oul be very small, while in the ag-
sItsa'e it would largely benefit those who
t to uependent upon the railway corpora
uons for support.
OFFICIALS IN CONFERENCE.