Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-06-29
THE INCREASED COST
To the Railroads Is Cause for the Ad-
vance in Rates.

New Haven, CT, June 2S.-President
John NJ. Hall of the New York, New
Haven & Hartford Railroad Saturday
night, made public the reasons for the
increase for freight rates all along the
line that goes into effect on July l, in
the following statement to the COM
pany's shippers and freight agents:
THE increase amounts to two cents
per hundred pounds on the three higher
classes and one cent per hundred
pounds on the three lower classes.
Il would say that this is done to par
TALLY reimburse the railroad, at least
to a small extent, for the enormous in
creases in cost Of operation brought
about during the past two or three
| years.
1T is our intention in making this ad-
vance, to make it uniform, so far as
possible, so that it will not fall unduly
on any particular locality or any par
ticular line of trade, and this we be-
lieVe we have done.
Coal, for our locomotives, will cost
approximately 100000 more for the
year ending July 80 than for the previ-
Gus year, and while 1t is true that
famine prices for coal do not prevail
lat the present time, nevertheless the
present prices of coal will make the cost
to the railroad for the year ending June
30, 1904, about 100000 greater than for
the year ending June 80, 1902.
1T has been frequently stated in the
press and elsewhere that this company
has not got sufficient equipment to
serve it's patrons properly, and in re-
Spouse to this would say that between
5000 and 5000 new freight cars have been
purchased, about half of which have
beer delivered, at prices averaging G5
per cent. per car more than the cost
for the same car three years ago. One
hundred and fifty passenger coaches
and some parlOr sleeping cars have
been ordered, at an Increased cost, COM
pared with three years ago, of about
65 per cent. Locomotives-all of which
are built in Providence-are about 40
PER cent. higher.
1.-THE New Haven road IS of itself the
largest buyer of certain lines of goods
in New England. and all such pur-
chases are made, wherever possible,
from New England manufacturers i'll
preference to those located in other
states. A notable instance of this is
the car works at Sycamore, Mass, |
whose sole customer is this railroad,
and the town is kept alive by the en-
ployment given in the car works at
that point. There is scarcely a large |
manufacturer in New England that |
does not sell largely to this company,
and, without exception, the prices
which this company has paid to such |
manufacturers for their goods have adj |
vanced from So to 100 per cent. in the |
past three years.
1--WE are called upon to eXpend q |
large amount of money for the elimina-
ton of grade crossings, which expense |
does not add at all to our earning
power, and the saving in flagmen is
such a very small percentage of the in
terest on the cost of elimination that 1t |
cannot be figured.
Our annual report shows that last |
year We distributed in wages in New |
England on the rail lines alone $20,000,
ono. This money is expended by en-
ployes in New England for living en-
penses and thousands of merchants and |
farmers are benefited and it seems on |
ly fair that those benefited should |
stand their share of the increased cost |
in transportation.
would have been q public calamity, in
crcascs in wages to employees were made
in May, which increases add 81, 900, 900 per
annum to our pay roll.
'"rhe slight advance in freight rates
is in no way made for the purpose of hav-
ing the public assist in the purchase of
the new equipment referred to- all of
which has been provided for by the issu-
ancp Of additional stock.
1T is estimated that the increased rev.
enue obtained from this advance in freight
rates will not begin to offset the single
item of increase in wages, and the road
is still left in the position of paying man.
ufacturers very largely increased prices
for purchases made from them without
making n sufficient advance in it's freight
rates to take care of such advances in
the prices of manufactured articles. If
it is right for manufacturers to advance
the prices of their manufactured articles,
it certainly seems fair for the railroads
to advance the prices of the only article
they have for sale, namely, transporta-
ton.
"All of the trunk line railroads have
been compelled to take similar steps and
advanced their rates, and a hearing was
held before the interstate commerce
commission as to the justice of such ad-
vances, and they decided that, with the
exception of the advance of one single
article. the advances were justified, and
that article is not affected by the ad
vance on rates on the New Haven road