Omaha daily bee., 1908-11-09
PROPOSED RAISE OF RATES.
No Warrant for thu Threatened Rail-
road Squeeze.
I~ndiapapofis News.

indianapolis News
IL is generally understood that there is
10 De some Increase of railroad rates
Slter the election. Not long ago we were
told mat the new rate sheets had been
made out in certain cases, and that all
that was necessary was to give the re-
quired notice of thirty days to the Inter-
state commission. This, so it
Is said, is to be done with the consent"
of the administration We have seen
something Of the earnings of certain rail.
roads, The Lake Shore is making 21 per
cent above expenses, Of which IA per
cent goes to dividends. The Union Pa
citlc' a Hartman road, is earning 10 per
cent. The old dividends are being main
tanned by the Hill lines, and there is to be
a large distribution to stock holders after
the election. Other roads have been al
most as fortunate. The Saturday Evening
Post says that in its last fiscal year, de-
spite the hard times, and the state fare
W the Northwestern paid s per cent
on its preferred and I per cent on its
common stock and laid by a surplus of
$,OVO,GO. The Atchison earned 8 per
cent on its preferred and sh per cent
on its common stock, though this latter.
as the Evening Post says, represents hit
tie tangible value'-and it earned nearly
100000 more.
Finally, We have a very remarkable
story of the earnings of two Hartman
roads for September, the Union Pacific
and the Southern Pacific, The Union Pa
cific, was, 1t is said, operated during Sep
tember for 4Sh per cent of its gross re-
ceipts, which is said to break all records.
Nothing like it, we are informed, was
ever seen before in the history of rail-
| rnAninU and nnfhfnn luga IL .ag1I 49, .
an Increase in freight rates" During the
month the road earned S7,4l4,5sI, an in
crease of s464, S69 over September, 1907. The
operating expenses were $3,217,2 72 - de-
crease of 1851, 1Ss. The gross earnings
given above are the largest ever reported
in the history Of the road for the same
month. The decrease in operating ex-
penses, which amounts to 81, 542, 252, is
astonishing. Net earnings increased "a per
cent. The Southern Pacific earned in the
same month $40, 600 gross, it's operating
expenses being IS. $4,000. Various explana-
ton of this great showing are made, but
it is the official record.
Here then are seven of our greatest
railways which are making large re-
turns on their investment, including water,
under the present rates. We can think of
no reason why they should be per
mitted" either to increase rates or to re-
duce wages, that Is, If the showing which
they make is a truthful one. The Satur-
day Evening Post puts the case very well
when 1t says:
THAT the railroads are In quite desperate
straits-just struggling along valiantly at
the ragged edge of insolvently-has been
said a great many times this year, in one
way and another. by many not wholly dis
interested people. The financial Difficult
ties OF some naturally weak or grossly
overcapitalized and sadly manipulated prop
critics have been cited to prove 1t. The
real test of the situation, however, is 70
be found in the experience of clean, we'll
built, well-managed lines. They may be
suffering some, as anybody suffers when
his income falls off. but the distress ID
hardly Of a nature to call for public sub
scription.'
The question seems to be whether a
railroad is really a railroad. or a disgrace
fully ov~ercapitalized speculative enterprise.
Even some OF the latter type appear to be
doing well. The showing OF the Hartman
roads certainly ousht to make any increase
OF rates impossible.