New-York tribune., 1908-07-16
NOT ALL FOR INCREASE
DISAGREEMENT ON RATES.
Some Roads Opposed to the AdUonce
and Some Shippers for 1t.

It now develops that the Trunk Line railroads are
not all agreed to the advisability of 10 per cent
increase in freight rates beginning October l.
Among those which, it is said. think it would be
mistake this time to increase earnings at the
expense of shippers are the Reading the Lacka-
wanna and the Lehigh Valley. On the other hand,
the New York Central has shown its confidence in
the wisdom of the proposed increase by hling with
the Interstate Commerce Commission new rates on
sugar and coffee between New York and Chicago,
to go into effect as early August l. On coffee
the new rate will be 30 cents hundred pounds. as
compared with q cents, the old rate and on sugar
Is cents. compared with the old rate OF 20 cents
The Erie, the Baltimore & Ohio, the Pennsylvania
and the Delaware & Hudson, it is said are also IN
favor of general increase
To make such an increase effective, of course 1t
will have to be concurred in by all the Trunk Line
roads. There will be a meeting early next month
in this city of presidents OF all the Eastern roads
to take up again the question of the proposed in
crease. Whether the difference of opinion now ex-
listing will be adjusted before that time Is ques-
ton of much interest in railroad and hnancial
circles The dissenting railroads it is understood,
do not favor the alternative suggested Of reducing
wages, but willing to take their chances for
greater revenue on the great Improvement In ousi-
ness conditions expected with the election of Mr..
Taft.
But if the railroads do not all agree as to the
advisability OF increase, neither do shippers as
its inadvisabilty An official Of one Of the large
1
The metal and allied industries will. in my opin-
ion object to the contemplated increase in the
freight rates. The arguments advanced by Vice
President Brown of the New York Central as TO
the benefits accruing to all industries through re-
establishment of the credit of the railroad COM
panies are so well understood that they require no
substantiation.
The tax upon the public at large through an in
crease in the freight rates is justly distributed in
SO far it falls upon the ultimate consumer IN
proportion to his wants which vary in accordance
with his worldly possessions. In fact. 1t seems to
us that all interests alike ought to cooperate In
helping the railroad companies to carry out their
plans
Before the Centrals rate on sugar was de-
cded upon there was a conference between that
road and number of Southern railroads, and the
shippers in the South also consulted. the rail-
road men say. The latter agreed TO the advance
on Southern roads It is understood provided there
was no discrimination. The larger of the twelve
railroads which the new rate will go into erect
on August / it is announced are, besides the Cen
trail the Illinois Central. the Mobile & Ohio, the
New Orleans & Northeastern, the Louisville &
Nashville and the New Orleans & Great Northern.
Mr. Mitchell general freight traffic manager OF
the Central says the refners of New ORLEANS are
entirely willing pay the new rate, having oeeH
assured there will be no discrimination Inc ad-
vances from New Orleans are proporuonate 10 that
between New York and Chicago
Victor Morawetz. chairman of the Atchison sys-
tenn said yesterday in regard 10 the pIoposeu ~
per cent increase in rates:
"A majority Of the railroad companies have no
more underlying mortgage bonds left to sell and are
so situated that they cannot create any more Be
sides their funded debts are as large as tney
b,,I5 he and sound management dictates that
further capital requirements be met by the issue OF
stocks Stocks. however, cannot be sold at less
than par and in order to sell stock at par COM
many must earn and pay fair rate OF DIVIDENDS
having regard to the condition OF the money
market