The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-07
RAILROAD NEWS.
Nebraska Roads Claim to Be
Losing Money.
Complain of Losses Through
Two Cent Fare.
FIGURES CONFLICT.
Railway Commission Makes In
vestigatiOn Of Its Own.
Other Items of Interest in
Railway Circles.

Railroad lines in Nebraska are paw
ing the way, apparently, to have un-
done some of the legislation of the last
session. Every road in the state has
made complaint that on account of
enactments of a year ago passenger
rates are non-remunerative and freight
business, particularly on some of the
branch lines affords no profit. Ac-
cording to figures submitted to the
state railway commission, the Burling-
ton Northwestern and Union Pacific
systems have suffered loss of operat-
ing revenues, both gross and net earn
ings. during the last nine months The
figures are taken from reports OF the
systems on file with the interstate
commerce commission, the comparisons
being made with the earnings for the
year ending June 30, 1907. The Burling-
ton shows a loss per month of sS6,o2b.
The reports, while showing a loss Tor
all the roads, are in some instances for
lines of the system outside OF Nebras-
ka, and the state railway commission
claims the reports are subject to two
constructions.
The state commission, in the mean
time. is compiling figures of its own on
purely Nebraska business, and the be-
lief is expressed that a far different
showing will be made. The reports for
the nine months ending April include
the panic period, and are not consider
ed a fair test of the volume of traffic
to be considered, which the state COM
mission must take into consideration.
One of these is the manner in which
the roads charge up expenses against
Nebraska lines, as compared to simila-
charges against portions of their lines
in other states. The same Is true or
the manner in which earnings are cred
tied to lines in the various states.
Charging that the Nebraska 2-cen.
fare law amounts to conflScation OF
property. the Missouri Pacific railroad
has made formal application to be per-
mitted to raise it's rates to cents, and
also to set aside the Aldrich commod-
ity freight rate law, which reduces
freight charges in the state an average
of 10 per cent. Bale P. Waggener, at
torney for the road, has asked the
state railway commission for hearing
and an early date has been tentatively
promised The Missouri Pacific makes
the application in its own name, put
is supposed to have the backing OF oth-
er roads in the state. The commission
has no power to change the 2-cent fare
law, but it is given discretion in rals-
ing the rates in the commodity law at
ter a hearing. The road, therefore, can
get no relief on passenger rates.
An inquiry into the receipts and ex-
npnditureS OF the missouri ID
expected to develop interesting facts.
1t has been charged that the company
used it's revenues to put into railroad
building elsewhere. 1t is further as
serted that its expenses include large
amounts which the railway commits
sion required to be used for improve
ment of the lines IN Nebraska that
had been allowed to run down until
they were declared by the commission
TO be dangerous to public travel. The
right to earn dividends on debts and
on alleged watered stock is to be
feature of the inquiry.
The petition filed with the commits
sion says the rates prescribed are not
remunerative as shown by actual ex-
perience. but are confiscatory and en-
tail daily losses. The company says
that during 1907 and previously ii prac-
ticed the greatest economy, and has
endeavored to keep its lines in state
of efficiency, but finds that the unreal
sonable acts of the legislature. togeth-
or with the financial condition exist
ing, has so handicapped it that 1t has
been unable to procure money with
which to carry on profitable business
in the state.
1t is said to have been tacitly agreed
upon by a majority of the managing
officers that wages of railroad employees
shall remain unchanged for at least
another three months. So long as the
this attitude. IL is not believed that
the weaker roads will initiate an OPP
posite policy.
1t is expected that in September
either business will have recovered
sufficiently to enable the roads to con-
tinue paying the present rates of
wages, or the necessity of reducing
them will be so painfully apparent that
resistance on the part of labor organic
atoms will be weakened. Speaking
from a familiar point of view. well
informed railroad man said this week:
'All of us have wanted to cut wages,
but none of us has dared to undertake
the task alone, and concerted action so
far has been impossible. The feeling
having been spread politically that
railroad ought not to cut wages and
continue to pay dividends, the difficult
ties of dealing scientifically with the
problem has enormously increased
Some of us, 1t is true. are not paying
dividends. but we cannot afford to cut
wages and have strike on our hands
which would be the case if we did
ii alone"
The agreement to continue wages on