Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-07-21
JAMES j. HILL AND j. r. HARA-
HAN, JUST RETURNED FROM
EUROPE, SAYS TARIFFS MUST
BE RAISED OR WAGES LOWERED
NO PROFIT NOW IN
CARRYING FREIGHT
BOTH CLAIM THAT HIGHER
CHARGES MUST COME OR THE
CARRIERS WILL BE DRIVEN
TO FINANCIAL DISASTER.

TO FINANCIAL DISASTER.
New York, July Is. One of three
solutions must come-an increase OF
freight rates, a general cut in wages,
or an enormous increase in business
or disaster confronts the railroads
OF this country, according to ]. T. Har-
ahan, president of the Illinois Central
and James ]. Hill, chairman of the
Great Northern board, in interviews
given In this city.
The two big men in the railway
world have Just arrived from trips
abroad, Mr.. Harahan from Europe and
Mr.. Hill from Canada, and both agree
That the railroads are facing the grav-
est kind of a crisis. They see no pros
pect of the necessary increase in olsi-
ness, so It is a rate increase or a wage
cut, or financial loss that might mean,
IL continued, receiverships and a gen
eral crash.
Higher freight rates must come.
they agree, Mr.. Hill insisting that a
reduction in pay of workers should
not be considered with the cost of
living where it is at present. Both
men hold that the charges for trans
porting freight are low in comparison
with rates abroad and do not yield a
fair profit on the service.
Harahan Raps at Fish.
Mr.. Harahan, who arrived from Eu-
rope yesterday on the Maurelania,
when asked if he Endorsed the opir-
ion of Stuyvesant Fish that the rail
roads would soon show increased
gross earnings, but that their net
earnings would not be satisfactory,
said:
81 indorse nothing he says. l do not
care what Fish says or does. | am
through with him."
Regarding railroad matters he adj
ded:
There must be one of three things
happen or the railroads of this coun-
try will go to the dogs. Either there
must be an immediate reduction of
wages, an increase of freight rates, or
business must pick up remarkably.
The last I do not look for, therefore
there must be something done to avert
a calamity from which this country
and the whole world could not recover
for years.
THE railroads are In a bad way and
it useless to deny it or try to beat
about the bush. We have got to have
more money either from increase of
freight rates or reduction of salaries.
Which is to come, l don't know, but
one or the other must.
Europe constantly reflects the con.
ditions in America, and l observe
that there was a picking up of bust.
ness there, which means that conf,
dence has been restored. The finan.
ciers there are impressed with the
nominations and the general opinion
is hat Taft will be elected president,
On this basis they are already begin.
ming to invest in American securities
Hill Sees Retrenchment.
Mr.. Hill, who came to town yester
day from a fishing trip in Canada
said:
New railroad construction in this
country has been practically obliter
ated. The railroads are not going tc
resume the building of new lines and
the purchase of equipment until they
know where they stand. Their aver
age expenditures for these purposes
in normal times, ran from $500, 600, 00(
to $6O0,000,000 a year. All that Is
stopped. What that mean to the in
dustries of the country is easily seen
Business activity during the last
thirty years has been greatest in those
periods Of largest expenditures by the
railroads for equipment and extension
When hat work stops the loss is Sc
verely felt by the iron and steel pro
ducers, the timber dealers, the equip
ment concerns, which is in turn re
1ected in paralysis in numerous othel
industries.
Where are the railroads going tt
get the money for carrying on this
work unless they are assured of al
adequate return on the capital invest
ed? Until the public is assured tina
the returns will be forthcoming invest
ors will continue timid about placin,
their money at the disposal of tn,
railroads.
IAN advance in rates is the logica
solution of this problem. The ques
tion of reducing wages should not b
considered. With the high cost o
living, the railroad employees are gel
ting no more han they are entitle,
to.
Cut in Wages Opposed.
Comparisons have been made wit
the rate of wages paid here and thos
paid to European railroad employees
But the two standards are not to b
compared. A higher grade of officienc
Is required in our railroad employee!
and, although they get higher wage,
they deserve it on account of til
higher class and greater efficiency {
workmanship. They should get fai
recompense. Cut wages 10 per Ger
and the man who got SIS last wee