The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1910-07-01
RELATION OF RAILROAD RATES
TO GENERAL BUSINESS.
To the Bushes Man.

No matter how Objectionable an al
vance in freight rates may be to us
personally, we must recognize that an
Improvement in general business is De
pendent on a betterment of operating
and financial conditions of the rail
roads. That the operating results are
most unsatisfactory is readily seen by
the latest Inter State Commerce com
mission reports, which show that for
the nine months ended April /, 1910
eleven railroad systems, all west and
north of a line drawn from st. Louis
to Chicago, compared with the same
roads for the same period in the prev
ious year, had their gross earnings in
creased about $5O,O0O,OOO, while their
net earnings showed a decrease of 3d.,
100000, and for the month of March,
On the same comparison, they show an
increase Of 100000 in gross and
decrease Of $965OOO in net earnings.
Attention is called to the fact that
The wage increases, Except a small
amount) were not in force during this
period, and from now on these will
greatly increase the operating cost.
These same railroads had their taxes
increased over the previous year 3d.
100000, or IA per cent, and have to
pay higher rates of interest on their
loans These roads covering the most
prosperous part Of the country may
be considered representative of gener-
al railroad conditions.
During the past three years of poor
business, railroad expenditures for
maintenance were necessarily at the
lowest point, ana in consequence their
motive power equipmet and tracks now
demand a greater proportion of oper-
ating expense. No provision has been
made or is being made for the growing
demands of the country, and as trans
portaton is the backbone of business
its weakness or ineffcency cripples
every other condition; because all pro
duets are valuable in the ratio with
their accessibility to the consuming
market.
1t is most important to the ship
per, that railroads at all times are full
lv equipped to take care of an increase
of his business, The first eight months
Of 1907 demonstrated that the rail
roads could not handle thes business
then Offered with any degree of salts
faction. The financial conditions since
have not permitted them to maintain
their then position. If the then volume
of business were to come back supple
mented by the three years growth Of
the country in the interval, transport
taton would be paralyzed; and what
would that cost the shipper compared
with the reasonable advance in freight
rates now? Such an advance would
provide the means for avoiding this
impending disaster. The iron horse
needs to be kept in condition for the
same reason as the living horse used
for transportation. The teamster knows
that if his horse is not well shod
well groomed and we'll fed, and his
harness and wagon kept in repair, that
all he will save on such economy will
be many times wasted in the ineff-
cheney of his transportation, and also
add great expense to the shipper. 1t is
exactly the same with railroads.: the
shipper has the right to demand that
the transportation be ample and eff
fcient; the success Of his business and
the development of the country are
dependent on it.
The Investor.
To do this the railroad must show
adequate returns to maintain proper
borrowing credit, and present prom
Using source of investment to pro-
cure the necessary funds to improve
and develop the property as needed
1t is neither the railroad president nor
the shipper that controls the situation;
!, it is the investor alone who holds the
/ key; without his uninvested dollar the
railroad cannot extend or improve no
matter how great the needs Of the ship
per or the country may be.
With all the increasing cost of OPP
Grafton, supplemented by ever inereas-
! ing legislative restrictions concerning
a IL -