The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-04-27
Eastern Roads Seeking Higher
Gross Revenues.
Traffic Officials Agree the Glass
Rates Must Advance.
CURTAILMENT NO AID.
Is Not Sufficient to Give I
Margin of Profit.
Other Items of Interest In
Railway Circles.

Traffic officials Of all the large east
ern lines are in favor of advancing
freight class rates. No formal action
has yet been taken. but it is gen.
orally agreed Cd that an advance in
class rates is necessary and de-
sirable; CD that while severe curtaiI-
ment is taking place in operating ex-
penses it is not sufficient to offset the
severe restriction in business and CD
that if the railroads are to obtain
money to make necessary extensions
and also make necessary improve
ments in their equipment they must
show sufficient profit over fixed
charges to induce investors to pur-
chase their securities.
The various railroads will now
study the matter and it is considered
probable that as individual roads they
may simultaneously put a new set Of
class rates in operation without any
definite agreement and thus avoid any
charge of violation of the antitrust
law. 1t is understood that the ad-
vances most generally advocated are:
First class, 10 cents a 100 pounds,
or from IS to S5 cents: second, s
cents; third. 7 cents: fourth, 5 cents;
fifth, cents, and SIXTH cents
A meeting of the executive officers
of the principal eastern lines was held
last week in New York, and the pres
ent business situation, as it more
generally discussed. There was a
strong feeling that while the rigid
economies which have been intro
duced should be continued, and the
expense of operation should be cur
tailed SO far as is consistent with
safety and proper maintenance, still
the roads must increase their
revenues if there is to be a sufficient
margin Of profit to make possible the
obtaining Of money needed for extern
sions and improvement of the service.
The traffic officers of the different
roads have been for some time en-
gagged in making study of freight
rates and are in favor Of an increase
varying with the different classes of
commodities 1t was generally be-
lieved by those attending the meet
ing that present conditions require
that an increase be made and the
meeting adjourned for each road to
give further consideration to the
subject
1t is understood that similar meet
ings have been held in all the west
and the south. Chicago advices show
that an advance in freight rates is be-
ing discussed by traffic men and
executive officers of the railroads, but
no concert of actions has yet re-
suited. Comm odtty rates cannot be
easily marked up, and the only rates
are class rates, which in many in
stances have not shared in the adj
vanced cost of handling such freight
on the part of the railroads in recent
years.
1t is not the intention, it is under
stood, to make any change in the
mmodity rates, the present move
ment being confined entirely to class
rates. Even in respect to these a
horizontal increase is not con-
templated. Those who discuss the
subject usually assume that the rail-
roads are planning to increase their
total freight receipts in that same
proportion. Railroad managers are
not thinking of anything of the kind,
they say; one of the reasons why
quite impossible. A proposal to in
crease all rates 10 per cent or even
5 per cent would be very promptly
vetoed by nine out of ten railroad
presidents and would, therefore.
never reach the stage Of troubling the
shippers. Railroad managers have in
mind plan whereby class rates shall
be taken up one by one and adjusted to
somewhat higher basis which, in the
opinion of the traffic officials doing
the work, shall constitute a reasonable
charge for the service performed.
Glass freight includes all the more
valuable tonnage that a railroad car
ries, in the market price of which
freight charges play only a minor
part. Generally speaking, class rates
have been about stationary for good
| many years, during which the cost
of labor and materials has radically
| increased, so that the freight carried
| under class rates is much less profit
able in proportion to the volume OF
| the traffic than it formerly was.
It is considered probable that ship
pers will protest against any import
IT, tn- Nd Toll
manufacturers, on the ground thai
| freight rates enter so largely in their
| business that under current depressed
| conditions business is being conducted
| on so close a margin-in instances
| plants being operated at a dead loss
| for the benefit of labor-that II
| freight rates are advanced plants
must shut down.