Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-07
CATTLE CAR EARNINGS
TESTIMONY OF. VICE PRESIDENT
REICHMAN.
Submits to House COMMITTEES Statement
Concerning the Receipts Of $50
His Company.

Although Representative Grosvenor Of
Ohio declared on the floor OF the House yes
terday that the Townsend Esch bill, which
will be voted on Thursday, makes it pos
sible for the interstate commerce commits
sion to regulate private car lines, the sub
committee of the House committee on inter-
state and foreign commerce, of which Rep
resentative Stevens of Minnesota is chair
man. is going busily ahead, collecting data
on the subject. 1t is probable that the pub
lie hearings before the committee will de-
yelop considerable information in regard to
the operation of these lines Yesterday rep
resentatives of the private cattle car inter-
ests were heard, and tomorrow there will be
testimony the subject of the private fruit
cars which are used to move the Georgia
peach crop and the fruit crops of other
southern states.
The representatives of the refrigerator car
systems, as well as those of 1.-THE private
stock car lines, will be heard before the SEN
ate committee on interstate commerce on
Friday
Earnings Of Cattle Cars.
Vice President f. j. Reichman of the
Streets Western Stable car line, who ap-
peared before the House subcommittee yes
terday and told of the operations of his
company. presented a sworn statement
showing the number of cars owned by his
company. the capital stock and bonded in
debtedness, the dividends paid ana the
earnings of the cars.
Mr.. Reichman stated that his company
dealt exclusively in cattle cars, and han
died go per cent. to 70 per cent.
of the live stock traffic from Chi
cago to the East. which was largely export
trade. His company rented cars exclusive
ly and did not operate them. He pre-
scented sworn statement as to the num-
Der of cars utilized in long haul traffic GOV"
ering the period from March, 19o2, TO the
present time. showing that in March, l9O4
which was the maximum, 2,5s6 cars earned
slightly over $4,000, or less than $ll
pared with the statement previously made
to the committee that these cars earned
s12 per day.
Seven Per Cent on Preferred Stock.
Setting aside the allowance for repairs
fixed by the government expert, and the
depreciation allowed by the master car
builders, Mr.. Reichman stated that in order
to earn per cent on the 500 which each
of these cars cost, there would have to be
a net earning of s122 each per annum,
which his company was unable to secure,
as the average earning capacity ranged
from IS to 81 per month. He presented the
exact figures to the committee, The sworn
statement gave the stock and bonded in
debtedness at S6,534,747. The preferred
stock paid Z per cent per annum For
long time no dividends had been paid on
the common stock, but for the past two
years it had paid per cent. This amount
was made on the rental of from eight thou
sand to nine thousand cars. The stock was
listed the stock exchange of Chicago
and held by the public generally, the COM
mon stock being quoted at from S2S to $31
per share, its par value being 800, and the
preferred ct par Mr.. Reichman said this
showing indicated that his company did not
make such excessive profits as had been
alleged. He said ii was chartered by the
state of Illinois to build cattle cars for sale
and hire. They were rented to the railroads
on mileage basis. and his company had
no, dealings whatever with the shippers.
No Exclusive Contracts.
In reply to questions by Representatives
Stevens and Adanisen he stated that when
requested the railroad 'hayed and bedded"
the cars before they left the yards. After
that his company had nothing to do with
the cars until they were returned to them.
as they did not furnish hay or water in
transit. - =
Mr.. Reichman stated that he had ap-
peared before the committee in response to
the invitation IN the Presidents message
that this subject be discussed. before Con-
greSS.
In reply to Representative Stevens he de-
MED that his company had any exclusive
contracts whatever with any roads or any
shippers. but would gladly furnish cars to
any one hiring them. 1t maintained yards
at Chicago st. Louis, Kansas City and
Fort Worth. Texas. from which cars were
supplied to the railroads at their request
and on mileage basis. While the com
it would rent cars to the shippers as well
as to the railroads