The Oskaloosa herald., 1903-07-23
SOME PLAIN TRUTHS.
Mr.. Sewers of the Iowa Central
Talks to Council.

ing thing was brought out in connec-
ton with the matter of railroad valu-
ations, and one about which the public
has known little, but which appears to
be of vital interest to some of the
railroad owners and managers. This
was brought out by George w. Seey-
ers, of Oskaloosa, general counsel for
the Iowa Central and the Minneapolis
& st. Louis railroads, in his argument
before the executive council. Mr..
Sewers told some very plain and
startling truths about the railroad bus.
mess, but he stated that inasmuch as
these facts had become known to SO
many he did not regard it as letting
out secrets of the business. However
what he said would be news to many
people Of the state. He prefaced his
remarks by calling attention to the
fact that year ago the common stock
was selling, of the Iowa Central, UP
above 60, but now it is down to q
cents on the dollar. He called atten'
tion also to the fact that the reports OF
the Central showed that the percent.
aage Of operating expenses to gross
earnings had been reduced. He pro-
ceeded to explain both things.
The item Of competition entered
largely into the situation. The Iowa
Central is an Independent line. 1t is
making struggle to maintain iteself
independent, and this against the
pressure from all sides for consolida-
zion. That struggle to remain indie
pendent is becoming daily more diff
cult. But more than anything else
the recent national legislation, all wen
meant, perhaps, which had rendered
it impossible to go out and get busI-
ness as in former times, had greatly
added to the difficulty in the way of
the independent roads. When press
ed to be more specific by the governor,
he frankly admitted that what he
meant was that the law forbidding re-
bates, and other special inducements
to shippers, had still further aggravat-
ed the natural discrepancy between
the great roads and the smaller, indie
pendent systems, so that a railroad,
situated as the Iowa Central is, with
no terminals in any great city, and not
reaching any markets, finds it impossi-
BILE to maintain it's business against
the sharp competition Of the great
roads with their terminals and connec-
lions and combines. The Independent
lines find it impossible to meet the
competition Of the merged systems,
and this is largely because the amend
ments of the interstate commerce law
have shut them out. AS for the Iowa
Central, he had advised the full com
pliance with the law, and it was being
followed faithfully, but with results
not pleasing. The past two months
the gross earnings have shown a de-
probation of $4,000 mile. Whether
the Iowa Central and other similarly
situated roads can maintain them
selves against the burdens added by
the interstate commerce amendment,
which was placed on the books by
western congressman, remains yet to
be known. 1t is certain, however, that
the amendments have had the effect of
placing burdens upon the Independent
systems. AS to whether the effect
was good for the shippers he left that
for them to decide.
Another matter tuched upon by Mr..
Sewers, in his argument, had some
weight with those who were consider
ing the question of railroad values at
the present time. The percentage of
cost of operation to gross earnings had
been reduced some, but this was de-
spite that all wages had gone up and
all the incidental expenses relating to
labor were greater. Now, how have
the economies been effected that
make possible the increase in net
earnings? By robbing the traffic de-
partment, the maintenance, the gen.
eral equipment. This has been going
on for several years on practically
all the railroads. They have been
making pFOuIS ny uSCllnlnS W hOCP
their track and equipment as they
should This can go on for certain
time, but must cease and then there
must be greater expenses for mainte-
nance. This point has about been
reached. Every item of expense re-
lated to wages has been increased.
The companies are at the mercy, as it
were, of the laboring men. The wage
earners are able to command the in
crease, and this must come at the ex-
pense of other departments of the bus
mess, if the earnings are to be kept
up. Never before in the history of the
state have such wages been paid to
men, and this is an element the rail-
road managers must consider at all
times. .a
The testimony of all the men who
represented railroads who appeared
before the council was to the effect
that wages have generally increased
in all lines and that the general ex-
penses of operation have increased,