Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-02
Mr., MURRAY ON RATES
President of B. and o. Dis
CuSSes Railroad Situation.
OPERATING EXPENSES DEAR
Increased Cost Seems to Justify In
creased Rates, He Says.
PROSPERITY ADDS TO TRAFFIC
Rates Are Very Small Compared With
the Value of the Articles Car
ried, He Asserts.
OPERATING EXPENSES DEAR
PROSPERITY ADDS TO TRAFFIC

NEW YORK, April 2-Mr Oscar c. Muir
ray, president of the Baltimore and Ohio
Railroad Company, in discussing the pres
ent railroad situation in connection with
an advance in rates of transportation. said:
When we consider that rates In general
are very low at present and expenses all
along the line have largely increased. 1t
would seem that the railroads OF the conn
try are perfectly justified in advancing
freight rates certain commodities The
wave of prosperity sweeping over the coun-
try has developed an abnormal volume OF
traffic, and it has been almost impossible
for the railroads to increase their carrying
capacity fast enough to handle II with rea-
sonable promptness and satisfaction alike
to the shippers and railroad people. This
has required increased equipment. track
age and terminal facilities and at much
greater cost than would have been re-
CURED several years ago.
Rates have always been flexible, de-
crea sing in times of depression and ad-
vancing in times of prosperity. The man
who places his money in railroad stock
has the confidence in his judgment that IT
is fair investment and he is just as much
entitled to reasonable percentage OF prott
or interest the lawyer who defends you
in court is deserving of fee for his pro-
fessonal work.
so that there shall be q surplus appli-
| cable to dividend payment when striking
a balance at the end of the year the earn
Ing power of railroad must of necessity
be regulated by the cost of equpping. main
tanning and operating it and the volume of
business handled. The earnings come al
| most entirely from the traffic hauled over
its lines and the extent Of gross receipts
Is dependent upon the rate charged for
| carrying various commodities. The stock
| holders dividend however, would have
,,,A,, tnE
ccntage of operating expenses remained I'M
touched. Much of the present prosperity
of the country is due to its uneXceled sys-
tenn of railroads and rates of ransporta-
ton lower than in any other country IN the
world In fact. rates are inhnitesmally
small when compared with the value OF the
articles transported or the cost of supplies
to the public.
Operating Expenses Increased.
The cost of running a railroad has
largely increased. especially during the
last year. while rates remained pracu-
cally the same. The great increase in
motive power during recent years has
gone far to decrease the cost of hauling
because they pull more cars and much
larger tonnage, but the eXigencies OF
trade have demanded more power mere
has been an advance in the price or prac-
tically everything used in building main
tanning and running a railroad If the
Baltimore and Ohio railroad uses the
same quantity of lumber and cross-ucs
during this year as II did last there will
be increase in cost OF about S"'''"'o'
fracticaily ,he sam a, ,,i -, :,
apnis >. W nomnietad locomotive
I'm euuipment 1t is estimated that dur
ing the years 1908 and l.oo, as comPtten
with the preceding mar uecaue lH''
1904, the increased cost TO the edl.Hio,e
| and Ohio for various Kinds Oh IN ~
cars ranged from 20 to SO per cent me
increase In the cost Oh ST. Soiii O.,
and box cars, USED Tor htuiihg coii, SIsti'i
and merchandise mas peeh heaNs; nlen
| ton them because they comprise nus
| or the Ireignt-car supply VI W -
ana the adultloh IN coSS ihu ., ,an,a,.
oned with seriously ne s.eei Io III,
cars delivered TO me bai.,n a re anu o nt
railroad IN Iooo COS. .inou. ." % -
more than tnoSe Pun cii.ioeu ~ ;. = 80, 80
i'fore, ana Doth Dun, ~, VIII nda Tue s.'L i "a ~,
ing capacitg % iuo,'o Io -
year an o"ooo puIu ,Lp % eo 900
cost % per EN- no - 1000 Will
pouhus ca paci.s ns s AZ IA ,ar,r.r 90,
celpe.ittlnii ar,u nd praafer car
OF neaalel cU,is III III i,nrn Teigbt of
yS -. 80 1,,rlood rotIny is stiIi n,uch
snip,et IL io ha,,Iin~ canocit,y Of tho car
80. ~. n;.ht go, 90 II is In suc,,
c.sas tho railToad Company is compelled
.t'ses ny l.ua oost - so,,inmant ana
W pay liz anairaS tho sama ratio Of
anrnings from If
80 e..
Raise of Pay for Employees.
at living exnenses have also advanced and
. - ,ht. .,a raooenize good sarvice the
10 meet 'iii' anu ie7
railroad employees generally nave deserved
and received an advance in salaries and
wages The Baltimore and Ohio railroad
ora.s;,a nov tho Same as I'm filling yacan-