The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-11-22
Increase In Freight Rates May
BE Decided On.
Higher Wages and Prices for
Supplies Demand II.
LEGTSLATIdN fkdEED.
Expenditures Are to Be Mini
mixed to the Limit.
Gossip and Matters Of Interest
in Railroad Circles.

| Chicago, Nov. ga general increase
in freight rates, to OFFSET a general in
crease in wages and a steady Increase
in the price of railway supplies. is con-
templated by the chief officials Of most
of the railroads terminating in Chicago.
While no definite action has yet been
taken. it is likely that the question of
advancing freight rates will be brought
up at an early meeting of executive Of
ticials in charge Of traffic.
An increase in freight rates is i'm
perative' if the railroads are to main
tain their present service and continue
their policy of Improvement" said a
vice president of one of the big west
ern systems yesterday. The railroads
cannot continue to earn dividends, even
II this prosperous era continues, if they
are compelled to pay the higher wages
demanded by all classes OF employees
and pay the present high prices for
cars. locomotives, and all kinds Of sup
plies.
Even in these. the most prosperous
times ever known in this country, most
Of the railroads are earning little more
than their dividend requirements, while
some are not even able to earn divi
dends on their common stock. Unless
men Will invest in their securities the
railroads cannot make the extensions
necessary for the development of the
country, purchase new equipment and
improve their terminals. When the
public stops buying railway bonds we
will have another panic, and it will not
invest when there is danger that divi-
dends Will not be forthcoming.a'
The railroads are facing a. serious
situation" said the chief traffic official
of another western system "On one
side are the employees, demanding. high
er wages. On another are the legisla-
lures OF eastern states reducing passen-
ger fares to a maximum of q cents
per mile. and several western legisla-
lures are preparing to do so. Down at
washington is the interstate commerce
commission, anxious to make a display
of its new power over railroad rates
in the belief that the public expects it
to make important reductions. All
around US are shippers clamoring for
more cars, and the builders are de-
handing rs per cent more for them
than a few years ago.
1T will take very short time to
wipe out the surplus of the most pros
porous roads If hostile legislation is en-
acted by number of states and the in
terstate commerce commission orders
reduction in rates The only ways In
which railroads can economize are by
dischargfng employees, reducing the
number of trains and minimizing -sefesi
Every big company is operating pas
senger trains in sparsely settled Sec
tions, which do not pay the actual cost
of operation.
L
work a hardship on many who are now
dependent upon it to successfully de-
velop new country, but it would be one
of the first things cut off if the rail-
roads were forced to adopt a more eco
nomical policy. The same might be
said of the freight service on many
branch lines. Where there are now
three and four a day the number would
be reduced to One,- and where there. is
now one the service would be9redueed
to two or three trains a week. All along
the line the number of employees of all
classes would be reduced What this
would mean to the country at large
may be estimated from the fact that
over SO per cent of the gross earnings
of all the railroads is spent for wages |
of employees"
IF the railroads could maintain their
present basis of rates think they might
be able to get along without any in
an eastern system. THE trouble is that
there is a general cry for more wages and
lower transportation rates In the past
year we have had our passenger fares !
in Ohio cut SO per cent, and it IS prac-
tically certain that Indiana and Pennsyl- |
vanfa will enact similar laws this winter.
mum passenger rate from the Missouri /
river to the Atlantic seab0ard will be 2
millions of Ollars to the railroads There /
has been a steady decrease in the rates
on the principal commodities shipped. and /
today the rates on many OF them, grain. /
for example, are much lower than they |
should be. An increase of a fraction of
a mill per ton per mile would greatly in |
crease the earnings of the railroads with |
out making any perceptible increase to |
the consumer. 1t Is certain that hundreds /
II demands will be made by shippers on
the interstate commerce commission for |
reduction in rates. and it IS extremely |
likely that some of them will be ordered /
unless the railroads themselves are able |