Omaha daily bee., 1903-02-13
RAILROAD RATES TOO HIGH
Hoy Frank T Campbell Protests Agains
Threatened Increased
SH0Uttsy< ,geRED AND NOT RAISED
Former IowaC ~ner Points Out
Imposition VIII Carriers
Are PrRcticine On the
shippers.
From a stan Correspondent.l

Hon. Frank T. Campbell, whose protest !
against the contemplated increase in rail- /
road rates fled with the Interstate Com !
merce commission a few days ago has /
created a mild sensation in railroad and !
shipping circles, is a resident of Des |
Moines. and his standing can hardly be !
questioned He was elected lieutenant gov
ernor Of Iowa by the republicans when the
fight was on to establish the right Of the
state TO regulate railroad rates in the '7Os,
and later when the old railroad commission
which was appointive had been legislated
out OF existence, he was one Of the first
commission elected by the republicans OF
the state. He was OF the commission that
put into force the frat maximum schedules
of freight and passenger rates in Iowa.
Since then he has been engaged as a man
ufacturer and shipper, but has kept himself
In close touch with the railroad rate Ques-
tion in the state and nation.
II have filed a protest with the Inter-
state Commerce commission" be said to-
day. mot that anticipate the commission
will do anything, but realized that some
one should take the lead and call the at
tention Of the people OF the country to
what l regard as a great injustice l have
asked the commission to make a demand
on the railroad managers for the reason for
their proposed great increase in rates. The
commission is in duty bound, il it repre-
Eents the people, to do this"
Commission is POwerIess.
What can the commission do to pre-
vent the increase Of rates If satisfied 1t is
unjust?"
Nothing at all. The commission is pow
erless and helpless. Congress has stead
fastly refused to give that commission the
power to carry out its own decisions or
enforce its own rulings. All that is re-
Quired of the railroads is that they file
their schedules with the commission ten
days before they go into effect when an in
crease in rates is proposed. But the COM
mission may at least require a definite
statement as to the cause assigned for the
Increase and thus publicity may be Sc
cured and the shippers and consumers who
pay this increased tariff. laid on the neces-
stiles 0f life will be well informed"
The situation in a nutshell is just this"
continued Mr. Campbell After the fnan-
cial depression OF few years ago the rail-
roads insisted upon an increase in rates
and in 1900 made an increase which has
| brought them millions Of dollars. That in
crease was excused by reason Of the higher
wages and cost of everything. Now, with
all the companies paying immense divi-
dends and the mergers adding to the divi-
\ dend-paying possibilities OF the lines. they
come with another demand of 25 to 80 per
cent Increase in rates. The people stood
| the former raise uncomplainingly They
| recognized that there was some reason for
it. But when they realize what Is being
done now they will have cause Tor right
eous indignation. Why don't they do some
| thing? That is because they do not know
! what is being done. 1t will come on them
j one at a time and the companies will deal
! with shippers individually. Their mouths
are stopped. They dare no, speak. And
they have no organization through which
they can or will act. The result is that
the new rates will be fastened upon the
country before the people are aware OF II
and nothing will be done.
Railroad Prosperity IL Great.
1.-THE railroads OF the country raised
their rates less than, three years ago by
advancing the classihcations 21.2 per cent
over the charges in effect prior to January
1. 1900 The Interstate Commerce commits
sion reported that the gross earnings OF
the railways for the year ending June 80
1901, showed an increase Of S92, 900, 900 over
1900. The average gross earnings per mile
were greater than for any previous year
for which reports had been received. The
dividends declared were almost SIS, 900, ,O0C
greater than the year before. This with
the dividends from leased lines would make
S32, ,00O, 900 more than in 1900. and beside:
there is left a surplus of s77.544.7s5 as the
first fruits Of the raise in classification IN
1900. aided by the general prosperity o.
the country And in the face Of these as
! tonishing financial results comes a demand
B far Of IN
and this with no other than the old apolog!
OF increase in cost Of material, labor anC
wages, adding a new burden OF cost o
fuel, two-thirds the cost Of which is TO
railway transportation.
Il believe firmly that not only should
there be no increase in rates. but tha
they should be put back TO where the,
, we're in 1900 before the last previous in
! crease. The railroads Of the country hav
partaken more largely OF the general pros
perity than others, their net profits AM
. surplus are immense and unprecedente
and there are fewer lines in the hands ,
receivers than few years ago; freight ca
be and is handled cheaper than ever befOr
on account,of improvements in methods o
transportation. the average cost OF carry
ing a ton a mile being reduced from l.. 7
cents in 1888 and 1.07 in 1890 to less tha
10 OF cent IN lSOO. ihey nave alTead
, by a % per cent increase in classifcatio
more than recouped themselves for th
!, claimed increase in expense on account c
the increase in cost OF material, wage,
etc. The increased tonnage OF the countr
promises still greater earnings, larger en-
gines, air brakes, speedier trains, auto
! matte coupleTs, and all these things mus
I be considered.
gl Examples OF the Advance.
s The proposed increase in rates in IN
= west, as announced by Chairman Tucker
the Central Traffic association a few day
e ago, is 20 cents a hundred on grain and
u cents on provisions from Chicago to Ne
q York. In addition, on over so per cent
e the commodity rates reduced below tariff
II since March there is to be an advance. an
d on stone. cement and brick the advance
from 10 to 25 per cent above former tariff
r The advance on groceries and iron article
{ from Chicago to Colorado and Utah poin
is stated by the press TO be over 100 p
e cent. There is also a large advance on III
stock and many other articles. The ~
import OF the new advance in rates wi
be fully appreciated later by actual e.
perienee. unless the Interstate CONNER,
q commission, congress and an outraged pu
T. I IL In n l-oa