Omaha daily bee., 1903-02-11
Les secure In this respect when the
next republican national convention
,rnRr1srp rREleHr RArEs.

INlhEANED EhFAb NJ m nc
A protest against the recent general in
creases in freight tariffs on grain and
grain products. dressed meats and other
commodities has been filed with the
Interstate Commerce commission in be
half of the producers and shippers Of
Iowa and the west generally. The pro
test sets forth that the railways have
partaken more largely of the general
prosperity than any other class of prop
erty in the United States; that their
earnings are largely increased over pre-
vious years, net profits and dividends
immense, surplus unprecedented; that
their stocks doubled in value in the last
Eve years as a result. 1t is further
urged that freight can be handled and
Is being handled by the railroads one
half cheaper than ten years ago on
account of improvements in methods
Of transportation. The protest adds:
1.-THE railroads have already. by a %
per cent increase in the 1900 classified
ton, more than recouped themselves for
Nhb NAdALANu lhNlNoHt III tABNAHND OL ~
count of advance In material, wages,
etc, and the increased tonnage of the
country, on account of the increase and
development of the shipping commodi-
ties of the country, promises still larger
earnings and dividends" The commits
sion is asked to require the corporations
to open their books to inspection by that
body.
That the statements in the protest are
true the recent statistics Of railroad
business and earnings c~onclusively show.
The traffic of the past year and partic-
ularly since the beginning of the move
ment of the last crop has been unpre-
cedented. For months the railroads,
especially the eastern lines, have had
their facilities greatly overtaxed and
necessarily their earnings have been
larger than ever before. The last num-
Der of the Financier gives figures of the
earnings Of the lines east and west of
Pittsburg and Erie for 1902, showing a
great increase over the preceding year
1t appears that In four years the gross
earnings of these lines have increased
over 8 100000. The balance applicable
to dividends was 1904, 900 in 1890 and
$21, 1000 at the close of 1901. Fol-
1902 the surplus over charges amounts
to all of $50, 100000, or over IL pei
cent on the stock without taking into
account expenditures for improvements
The earnings for 1901 were equal to II
per cent on the entire outstanding stock
The western railroads have been rela
lively prosperous and as the protest
states have more than recouped them
selves for the claimed increase in ex
penses.
In December last the Interstate Com
merce commission called on the rail
roads to give their reasons for ~advancins
freight rates and most Of them hay,
replied, but 1t is stated that the reptile.
are not satisfactory to the commission
Therefore 1t proposes to pursue the in
quiry and a hearing has been arrangeC
for the 26th of this month, when rep
resentatives Of the leading railroads will
go to Washington to answer such ques
lions as the commission may desire t,
put to them. Whether the inquiry will
have any practical result is problemat
ical. The fact is that the advance II
rates is the natural outgrowth of tn
merger system, by which immens
blocks Of largely watered stocks hav,
been thrown upon the market with tn
promise Of paying profitable returns il
the future.