Delaware gazette and state journal., 1902-11-27
BIG PROFITS FOR RAILROADS.
The Estimated Eject of the Advance in
Freight Rates on Aggregate Revenue.
Baltimore American Special

4
The Estimated Eject of the Advance in
Freight Rates Aggregate Revenue.
Baltimore American Special
New York, Nov. 1.-At the rate ad
vances in freight are being made the |
railroads of the country will clear in |
the aggregate about $40, 600, 900 an |
nually over and above the increase in |
wages. The latter will amount in round |
figures to $50, 010, COO, and the advance
in freight rates will bring in about |
S12o, COO 600 additional revenue.
In some quarters it is believed that
one of the original purposes of the
great wage-increase movement was the
advance in freight rates that is now
being worked out by the associations
of traffic managers in different seItions
of the country. If the freight rates
had been arbitrarily advanced much
hostile criticism would have been pro-
voked, it is said, and the Legislatures
of various STATES, particularly those in
the West and South, would have been
called upon to take action on the
matter.
An official of the Pennsylvania road,
which was the first to increase wages,
frankly admitted today that his COM
pany intended to make freight rate
advance which would bring a gain in
revenues of $40, 600. 600. He fixed the
sum that is involved in the 10 per cent
increase in wages at 81, 500, 0G0 yearly.
In many quarters this figure is re-
garded as an exaggeration. The ad-
ditional sum which the company will
actually pay yearly in increased wages
| has been computed by authorities to
be a trifle less than 81, coo. 600.
| The advance in freight rates will
make bread, meat and other articles of
food dearer. In fact, for all of the
| necessities which enter into the cost of
living the consumer will have to pay a
higher price.
ADVANCE WILL. BE MODERATE.
Public Ledger, Philadelphia, Nov. 22d.
There will be an advance in some
| freight rates with the new year, not
much Of a one, however" said Suther-
land y. Provost, third vice president
of the Pennsylvania railroad, to a re-
porter for the Public Ledger last night
II saw in the papers this morning
i that rates in steel and iron will be in
creased 20 per cent. This is rot so.
Nothing has as yet been decided upon,
but you can rest assured that any ad-
vance made will be moderate. There is
no idea of making horizontal advance
in all rates. Many rates will not be
disturbed at all -
The position of the Pennsylvania rail
road as to an advance in freight rates
was thus stated by the man who has
charge of all freight traffic matters oi
the Pennsylvania system. Mr.. Provost
on Wednesday returned from Pittsburg,
where ne had spent two days examin-
ing the freight congestion situation al
that city. President Cassat, Second
Vice President Pugh and other Penn
syIvania officials were members of the
inspection party. 1t was announced
yesterday from Pittsburg that freigh
on iron and steel products would be ad
vanced 20 per cent on January lst b.
action of the Central Freight anC
Trunk Line Association. This statemen
, Mr.. Provost denies. The Pennsylvani,
, Railroad Co. is the dominating facto
, | in the Eastern Trunk Line Association
Just as the Pennsylvania Co. is tn
, dominating factor in the Central Trunl
, Line Association.
1t is understood that the Pennsyl
, | vania takes the position that the irol
i and steel industries are largely re
/ sponsible for the freight congestion
i which exists at Pittsburg, that thei
i business is enormously profitable AM
! that they shall bear the burden of tn
/ proposed freight increase. 1t is said
too that when the Pennsylvania official
: conferred with the iron and steel me-
in Pittsburg on Tuesday they told th
a Pittsburgers that any freight adyanc
should be put on iron and steel pro
a ducts and not on food products. A hig
! official of the Pennsylvania, who assist
a in traffic management, said last even
$ ing to a reporter for the Publ
: Ledger:
"The freight on iron and stee
. products will be Advanced 8 or 10 pc
3 cent by the Pennsylvania January 1st
There would also be an advance o
I heavy and cumbersome commodities
such as stone, sand, brick, &c. Dresse
ia beef and provisions will be advanced
cents hundred pounds on Januar
i 1st. That will be simply restoring th
"a rate ruling in January last year. TIL
rate is always reduced in the sprin
"a and increased January 1st Five CEN
a hundred means just 40 cents on a
n 500 pound carcass of beef, and will
no excuse for Chicago and Wester
a packers advancing beef prices. Anoth'
Ia increase is coming, and that is :
If grain and grain products. They wi
be advanced 215 cents a hundre
!, pounds on December Sth, little mo
~ than a cent bushel. This increa
ar was, decided upon weeks ago by ii
.. Trunk Line Association, and the a,
at vance had nothing to do with ii
ID freight congestion at Pittsburg or al
ns other point"