Omaha daily bee., 1908-07-22

pose Of adjusting the differences be-
tween incomes and disbursement is
found in the difference of opinions on
the subject. Many az the ablest men
in the transportation business have ad-
mitted the do~uble-edged character of
the proposed remedy and the result
of the conference in a decision to leave
the question OF individual roads, to
be adjusted according TO local condi-
tons. is undoubtedly the wisest policy
that could have been adopted. New
tariffs have been promulgated on
sugar and coffee between New York
and Chicago and The roads east of the
Mississippi have decided to advance
tariffs on certain commodities.
Shippers and manufacturers are
naturally antagonistic to this proposed
increase and meetings have been called
in various business centers to protest
against the proposed changes. They
take the position that an increase in
freight rates would retard the return
Of normal business conditions and add
an important ittlu III Nv NOhb VI 6OOhS
and products. The railroads contend
that the proposed Incl ease would cut
only a trihing figure in the cost of any
given article. The shippers retort that
however trifing the increased cost
may be, the consumers can not be
made to pay 1t and that the increased
cost will accordingly fall upon the
manufacturer or the merchant.
The railroad side CT the argument
is also worth considering. Statistics
show that the railroad companies are
the greatest spenders in the world.
Since 1901 they nav been expanding
something like 5000, 900 900 a year in
extensions and bstterments, taking
this sum from their net earnings.
The reports for the present year show
that the roads are running behind In
their gross and act earnings at the
rate of $500, 900 900 II year, or a total
of 500, 900, 900 year in loss Of their
spending power. The aggregate ex-
penses of the couaJry railroads, for
the year ending June 30, 1907, for
operating expenses were $~1,74S,515-
S14. Every reduction of this flow OF
money must affect rot only the rail-
road employees directly, but indirectly
reach practically all classes OF indus-
tries and activities. The railroads con-
tend that an increase in their freight
rates would at one start the restora-
ton of normal conditions in other In
dustries by enabling the roads to
make a showing upon which they
could raise money FOR needed improve
ments and in this way quickly put the
wheels of industry in motion at thelr
old speed. The resulting benefits, they
urge. would accrue to all industries
and to all classes Ct population and
those bearing the burGen would them
selves be the largest beneficiaries, be-
cause the benefits would come back to
them many fold. r
The rather gloomy outlook of the
railways is not wholly supported by
the report of the Interstate Commerce
commission for the year ending IN
June of 1907, nor by figures on the
business of the present year as COM
niled by New York financial papers.
The fiscal year ending with June
1907. was an exceedingly prosperous
one for the transportation industries
a healthy increase Icing shown In both
freight and passenger net earnings
The Wall Street Journal m a
loss in net earnings OF IA per cent Tor
the year closing with June, 1908 and
while the amount IS large, 1t must be
remembered that it is compared with
the most prosperous year in American
r~ailroading, and taat even a loss OF
IA per cent in net earnings leaves a
handsome margin Of profit.
The interested rublic may feel sat
,sfed that the questions involved are
receiving the earnest and careful con-
alteration of railroad men n snip
pers alike. Railroad men appreciate
the fact that the precise effect OF any
increase in freight schedules can be
determined only by experiment ana
experience. They understand IHa' "
rate will not tempt the shipper
and that certain ~cOnsignments now
Welding only a moderate profit may
cease altogether under the pressure OF
rates. They understand that
Il will be a rueful bargain for the
railroad companies if they increase
rates only to find that it has chilled
energy and deferred the revival OF in
dustry instead of Fastening It, gu!
Of the discussion has come the good
clearly evident, of having the railroad
recognize the fact that their
prosperity and that of the shipping
public are dependent upon each other
TUF SOUTB AND THE SENATORS.