Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-11-20
BALK AT RAIL CHARGE
Roa~s Decide to Contest commeres
Commissions Right to Fix Property
Depreciation Tax-HiII Lines Favor
Rule.

Depreciation Tax-HiIl Lines Favor
Rule.
Chicago, Nov. 20.--The larger rail-
way systems have decided to contest
the right Of the interstate commerce
commission to require the railroads to
charge off for depreciation of property
certain per cent of their net earn
ings. This developed yesterday at, a
meeting Of the special committee of the
American Railway association on rela-
tons with the interstate commerce
commission.
No report was made by the COM
mittee to the final session of the as
sociation, which was held at the Aud
itorium, for the reason that unan-
imous action could not be obtained.
There are certain roads, among them
the Hill lines, which are in accord
with the rule of the commission, but
the majority believes that it is i'm
practicable, if not dangerous to the
continued financial prosperity of the
roads. The subject has been one Of
correspondence and conference between
the special committee of the associa-
ton, at the head Of which is F. A.
Delano, president Of the Wabash road,
and the commission for more than a
year.
The commission in It's first order did
A. ,,,l,; ho
railroads should charge off for de-
probation of equipment, road bed and
track, buildings and other property,
but left that temporarily for the rail-
roads to determine. Some of the roads,
among them the Rock Island, began
charging off a considerable per cent,
only to find that they were creating a
theoretical surplus or fund to no pur-
pose, whereupon the per cent was re-
duced to less than 1 per cent.
The result is that the commission
probably will specify the per cent
which must be charged for deprecia-
ton. When such order shall have been
made by the commission the majority
of the railroads will refuse to obey it.
The committee on safety appliances
reported that total Of 97.5 per cent
Of the freight cars in the United
States are equipped with air brakes
and also 99.9 per cent of all the loco
motives.
The association reelected Daniel
Willard, second vice president of the
Burlington, vice president of the or
ganization, and elected the following
roads members of the committee on
car service; Chicago and Western In
diana, Lake Shore and Wabash. The
Chesapeake and Ohio, Lehigh Valley
and Pennsylvania lines west, were
elected members of the safety appli
ance committee. The association de-
cided to hold it's next meeting in New
York city in May.
While on the stand before the inter-
state commerce commission yesterday
in the southeastern rate case, Vice
President T. C. Powell of the South
ern Railway, admitted that if the rates
were reduced from Chicago to Chat
tanooga there would not of necessity
have to be corresponding reductions
in the rates from New York to the
same place. That is, it is stated, Chi
cago's whole case.
President A. ]. Earling of the ST.
Paul road, said yesterday that he is
making an investigation into the cost
Of operating the Pacific coast extern
sion over the Rocky and Bitter Root
mountain ranges, total distance Of
about sixty miles, by electricity.