The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-01-06
RAILROAD NEWS.
Outlook of the Railway Indus
try During Coming Year.
An Increase in Net Earnings Is
Not Expected.
MIR. RIPLEY's OPINION.
Would Select Employees Inter-
ested In EMPLOYERS Affairs.
Hopes Necessity for Reducing
Pay will Not Come.

Presidents of number of important
railways in the United States state in
communication to the New ork Even
ing Post their view as to the position
and outlook of the railway industry
during the coming year. The response
to the questions put are frank, and in
general were readily submitted The
president of one important railway re-
marked that If he knew the answers,
he would rot be compelled to work for
his living any longer, but did not know
them. Another writes: Il know of
nothing more disappointing than
prophecy" and prefers not to commit
himself
The questions suggested by the Even
ing Post were as follows:
ID What do you consider the most
hopeful factor in the outlook, from the
railway point of view?
o. Net earnings; do you look for
further inc1 ease. for stationary con-
dition, or for a decrease?
90 Do you expect further lowering
of cost of labor and of materials?
a. What is the prospect of rate
maintenance in 1904?
(5) Win the movement of hfgh-elass
traffic TO the interior continue as large
next year as this?
(6) VIII improvements and better
ments be carried on next year, on the
scale of recent years?
o. VIII reduction in the unit of cost
of operation continue, or has the mini
mum been already reached?
80 What tangible results are in your
opinion the most noticeable from the re-
cent large expenditure for improve
ments?
OF the eight responses published, five
say that no increase is to be expected in
net earnings. One expects q decrease,
x74I7il fxtrN increase in nat
earnings under stated conditions None
of the writer's expects that the cost of
labor will be reduced, but in three re
plies it is said that q reduction in the
price of material may be looked for It
is also the opinion of each railroad
president who expressed himself on the
subject that rates are being maintain
ed better at present than at any time
in the history of the industry, and that
the prospects for a continuance of such
conditions are good Doubt is expressed
in three answers whether the movement
of high class traffic will be as large next
year. One president believe that fur
ther reductions can be made in the unit
Of cost of opera ton; two hold that fur
Their reduction depends upon wages;
three say that 1t is too early to deter
mine what the results of improvements
and betterments have been.
President E. P. Ripley of the Santa
F'e, whose opinion is of most interest to
the west. SAYS:
II - QL1tH-U4t " Say WHAT mas DG6n
the most important feature in railroad
affairs during the past year. There
have been several conditions which
have exercised a marked influence in
railroad matters. 1t is probable that.
on the whole rates have been main
tanned better than ever before in the
history of American railroads. and it is
very fortunate that this is the case
since. under any other conditions, it is
doubtful If any amount of economy
would have enabled the railroads to
stand the increased expense of labor
and material. Another important hap
DeninE has been the collapse in fnan-
cial affairs. which has rendered it diff
cult to continue plans for Improvement,
however meritorious.
Generally speaking, I think the re-
suits of railroad operation have fully
JUSTIFIED all expenditures that have
been made in the way of improvement
and betterment. Whether all new ac-
QUESTIONS have been justified and will
in the future prove profitable, I am not
prepared to say. In such matters one
cannot judge of the conditions sur
rounding others than himself If the
railroads of the United States had been
less liberal in expenditures for improve
ment of track and equipment during
the past four or five years. they would
not only have been absolutely swamp
ed in the attempt to do TIE business
which has been thrust upon them but
they would have been unable to do bus
44lSSS db d IttSOtldblS pIOHI IN the lace
of the labor conditions that have pre-
vailed.
Il am inclined to believe that earn
ings. taken as a whole, have reached
maximum for the present or nearly so;
but 1t is to be renem bered that very
few people in this country realize how
fast the country is growing, and how
soon business builds I'D around a new
piece OF railroad in a growing country.
Properties " hich when built were erlti-
cise6 as most doubtful ventures have
frequently, il the course of few years.
become very prOfitable-in fact this has
been the rule rather than the exception.
Thera is q constant ascension of nom
ulation, of production, and of consume
ton throughout the west. and while it