New-York tribune., 1909-10-20
SHIPPERS FIGHT RATES
Resolutions against Freight Id
Uance .1dopted an Cincinnati.

rates would disturb existing business conditions
and that such an advance is not justified ana
viii be vigorously contested by the leading ship
pers' organizations of the country, was the tenor
Of resolutions adopted to-day at a meeting OF rep
resentatives OF shippers and other comfnerciai
organizations from many parts OF the country
The day was devoted to discussion or the
freight situation and it WAS determined TO begin
a strong opposition TO the contemplated advance
in rates committee was created to educate the
public freight rates and 10 have full powers
in dealing with that subject.
The resolutions adopted follow in part:
whereas. MI c. c. Mccain. chairman Of the
Trunk Line Association, composed of the Baltl-
more OHIO Railroad: the Buffalo; RoehesteI es TaSS
Jersey. the Delaware & Hudson Company the
Erie Railroad, the Grand Trunk Railway, the Le-
high Valley Railroad, the New York Central q
Western Railway, the Pennsylvania Railroad. the
Reading G M Railway ss dTs the RaSosd
has compiled pamphlet entitled '"Ihe Diminished
whereas. said railroads. have 'a assumed the re-
sponsiblity for said pamphlet by circulating same
whereas, the avowed purpose Of circulating said
pamphlet is to educate the public; and :.
Whereas, the true purpose of said pamphlet IS
to prepare the public for contemplated advance in
Whereas, said pamphlet is bassed. partial and
misleading and gives only section of the truth
things. the following facts and figures:
in the United States for 1907 Exceeded that for 1897
by I,5S4 an increase of S45 per cent:
L
England) for 1907 exceeded by $40 that for 1884, an
line u e terTtGrl for 1907 exceeded that for 1897 by
The net income mile Of road of the roads, in
Group III &C. F. A. territory for 1901 exceeded
The surplus from operations of roads in Group
III for 1897 was $25S mile greater than the net
income OF the roads in said group for 1891;
The net 1 ineome Of all the rair9ads in the UNITED M
257 sos excess, 1907 over 1897. sSSS 2oS, ,sS2' an
increase of 453 per cent.
in the United States for 1907 exceeded the net in
The amount Of stock paying dividends increased
fGSm 54sS7S in 1897 6o t9 s4s4S75S2OS IN
The rate OF dividend on stock increased from
543 per cent in 1897 TO 6.2S per cent in 1907. an
The revenue a train mile, all trains of the rail
roads In the United States, for 1897 was Sl.SSz
The average cost Of running train one mile. all
trains for the same year was 929 CENTS profit
The revenue train mile all trains. of the rail-
roads IN the United States for 1907 was $21II;
The average cost of running train one mile, all
trains for the same year was s147; profit, 70.7
For 1897 the profit train air IN mile; all trains: ex,
ceeded the profit for 1897 by 254 cents mlle an
Now, therefore. be it resolved by shippers from
all sections of the United States in conference as
First-That as said pamphlet does not set forth
ing, said document is not proper one for educat-
ing the public and does not fairly set forth the full
information to which the public is entitled.
second-That the facts do not justify any. gen
eral advance in freight rates, but the contrary,
@Third-That an executive committee of this con-
ference be and the same is hereby created. with
all the powers of this conference and with full
power to act during any recess thereof
FOurth-That said executive committee be and
it is hereby instructed to prepare a full and COM
plete answer to said pamphlet other similar
pamphlets, and to circulate the for the edu-
cation of the public as TO the true freight rate)
situation and for the further purpose OF correcting
any erroneous impression that may have resulted
from said pamphlet or other pamphlets of a simi-
lar nature
FTfth-That as any proposed general advance in
freight rates will disturb existing business condi-
"a 0DD0Se6
sisted by all legitimate means.
The letter of the Shippers and Receivers Asso-
citation, of Cincinnati, addressed to President Nc
Crea of the Pennsylvania Railroad and by him
referred to C. c. Mccain for reply. has ELECTED
answer. in which Mr.. Mccain says:
cannot but feel that your comparative data
which especially directs attention to increases, is
not an entirely fair premise. do not assume that
you regard the return TO railway Investors in 1897
sufficient when 1910 per cent of outstanding
stock paid dividends and 1883 per cent of the
would claim under the foregoing showing that
they were wholly adequate in 1901. Consistent with
the argument contained in the pamphlet, may
add that in my personal Judgment, the carriers
entitled to a more equitable adjustment Of
freight charges than exists at present. The de-
creased purchasing power of their earnings. the
creasing public demand for facilities and addi-
tional regulatory burdens suggest the various de-
mandS for expenditures which must precede re-
turns to investors. II the latter shall reach an
industries and be maintained for the entire capi-
tai invested. and provision also made for future
men increased facilities etc, it must be evident
that the present earnings. which return 6.25 per
cent as dividend on 20 per cent OF the capital
stock and no dividend on 30 per cent. are made