The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-05-06
TAiK Of HleH RATES.
RAILROADS CONTEND THAT IN
CREASE Is ABSOLUTELY
NECESSARY.
kxpensee Are Mounting UP Despite
Every Effort to Limit Them, and
she Balance h ON The Wrong Side
Better Times Are Hoped For.

washington. April IA serious
condition confronts the railways of
America. They are going backward
In receipts. without being able ma
esrially TO reduce their expenses. I'm
lsss railroad business should improve
In the next three or four months, one
OF two things almost certainly will
occur; Either there will be reduc-
tion Of the wageS Of railway employees
or an Increase in the freight rates of
the lines" NJ
This opinion was expressed by an
imDortant member of the interstate
commerce commission. He had gone
over carsfully with the leading f,nan-
feisrs of American railways the whole
problem ana his opinion WAS the only
conclus1on ~ which they possibly
could arrive.
II y hopsd--and BY many II is ex-
pscted--thas the business conditions
sof ths railroads will improve before
'hsxt autumn; but the situation now
- pretty serious. The president Of an
important system of. railroads said to-
day:
''Dcspits ali We can do our expenses
are keeping up. We have practically
stopped all new construction work.
and We have reduced our operating
expenses TO the lowest possible limit:
but notwithstanding these facts. our
net revenues are far less than they
were IN the corresponding months of
lass sear or the year before. We can
not fairly compare the revenues of
t4s year and last year with those of
nvs years aso. for instance. because
then our operating expenses were not
30 hsayy a. they now are. In the last
I'VE ysara wagsS have increased i'm
,msnssiy: supplies OF all kinds are
grssssr IN cost; AID our equipment IL
Rtncrmousiy more expensive. On our
unes. fcr instance-and they are sub
stsntsally typicai--we are making ut
t1e more than our operating expenses.
We have little for Interest on our
bonds and nothing for dividends 90
seockholdsrs. hope and believe that
,ahs situation win improve. but II the
lmDrovsment does not como soon we
shan b. face 70 face with most
ssriojs proelsp. It may resolve into
: eusstion either Of reducing wages
Or Of Increasing freight rates. Per-
sDnaI!y, do not want to take either
eourss: but this may bs q great move
20 ave from general collapse tho
srsatsst single industry in the world
OF Industry. the aggregate value OF
which " approximately $4,000 .ooo.-
oee. bssldss which the United States
Cooperation II dwarfed into Insignia
~canoe.s
sThs problems suggested in this
statsmsnA are under most serious con-
ssdsrstion BY railway omcials through
out the country. Thus far. the ON
cials OF Organised labor have de-
ciined 70 consider any proposition
|, Sosking TO scaling down Of wages,
even temporarily. and the likelihood
- that ~ such proposition were
put into effect .gnerally. Il would
result In tremendous labor dis
turbance.
A. railway men regard thu matter.
4 therefose. the only means by which
they can make both ends meet is to
Increase their freight rates. Passen-
Ser rates probably will not be AFFECT
ed. II general increase of freight
charges should be determined upon.
the Interstate commerce commission
probably would institute an investiga-
don into the subject. having the au-
thority to do 30 under the law. Even
tuaiiy. therefore. II would be decided
whether such an increase was war
ranted. In any event. the interests of
the people would be amply pro-
tected.