Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-03-02
Allegation that Decrease in Traffic
Makes it Burden.
PANIC Is BLAMED FOR THIS
With Normal Conditions in Money
Market Rush is Expected.
THREE HUNDRED CARS IDLE
One Road Says II Keeps Emptie,
Moving Because IL Has Not
sumcient Yards 90 store
Them.

| WASHINGTON, March 1.-American rail.
ways have made arrangements to comnN
| with the provisions Of the "nine-hour law.
| Inc operation Of the law will mean ths
employment by railroad companies OF sew
eral thousand additional operators and the
closing of a large number of small stations
on the principal systems, Disseminating OF
| railway service at many points. Il IA
| thought WIN induce at least ten,porarv in
convenience to the travelling and shining
public In order to reduce operating ex-
penses, which now seems necessary. the
operating officials OF the railways believe
that this is the only way that they pos-
sloiy can meet the situation with which
they are confronted.
During the hearing Of applications for an
extension or the nine-hour law by the In
terstate Commerce commission some aston
ishing statements were made nv tba onor
ating officials of important RAILWAYS A
good many lines, owing TO reduction I'm
thelr revenues and to their inability 10
command the cash necessary to meet th,ir
pay rolls, have been forced, during tho
last -FOUR months almost to the point of
ASKING Tor receivers. In the opinion of
railway officials, expressed at the hearlnr
under oath and in private conversation.
this condition does not seem to have han
due to the enforcement of regulative laws
or to the incapacity of railway manage
ment. Most Of the railway officials at
tribute the difficulty to the unfortunate
banking situation, which develored Last
September. The railways did not feel the
strlhgency in money until about the first
OF November. In fact, the month OF Oc-
tober was one of the best in the history
or the business of American railroadinp
Then, without the slightest warninpis as
II. U. Nudge, vice president and general
manager of the Rock Island system ox-
pressed It, I'VE were plunged from pros
perity to adversely. year ago our sys-
TEN could not handle the traffic offered us.
Ioday we have 1000 idle cars. Five months
ago we suffered from a congestion of
freight, now we suffer from a congestion of
empty cars"
What is true of the Rock Island "a true
also of scores OF other railroads. One rail
way official ventured the statement that
In the country today there were 100000 idle
freight cars, and one line which he in
stanced was declared to be hauling emntv
cars backward and forward because II had
not yard room or sidings to accommodates
them.
Not single official of a single railway
line who appeared before the commission
however, expressed the belief that the pres-
ent Industrial depression would be lasting
In the testimony of nearly every witness
before the commission there was a note NJ
confidence, because nearly every one of
them practically believed that the strin-
sency in the money market from which
The country has suffered is not due to fun
iamental causes. They point out that the
'rops last year were good; that prices were
eXcellcnt that Industrial enterprises
throughout the country were flourishinq
It was merely the inability to command
'eady cash ard the boarding OF money bv
individuals which produced
10 suddenly the remarkable depression from
which all have suffered. They practically
Uniformly express confidence that the re-
urn OF prosperity will be almost as sudden
IS was the coming Of adversely and I'm their
arguments as to the enforcement OF the
line-hour law. they pointed out to the COM
mission that such a return of prosperity
night seriously embarrass them I'm comply
ng with the law, because II would render
difficult to command the services of com
'etent operators in sufficient numbers to
meet IN eneeds Of prosperous conditions
with four or five exceptions, no important
ailroads In the country have Indicated
N intention to reduce the wages of their
mployes. As Chairman Knapp OF the
Interstate Commerce commission expressed
/; so far as I am informed there is no
oncerted action on the part of American
ailway companies TO reduce wages In.
tances Of an intention to change the scale
wages have been given, but they can be
aid to be in no sense general"