Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-08-31
INSISTS
HIGHER RATES
ARE JUST
DECLARES OUTLOOK FOR
COMING YEAR GLOOMY
Santa Fe President interesting
Witness in Commerce Com
mission Hearing on Reason
abIeneSs of Freight Tariff.
tBy Morning journal Special Leased wirsI

/ tBy Morning journal Special Leased wirel
Chicago, Aug S0.-President f. e.
/ Ripley, OF the Santa Fe system, on
the witness stand today before Spe-
eial Examiner c. NJ Brown OF the
Interstate commerce commission in
support of the contention ot the rail-
I roads that lighter rates are Just and
/ right declared that wages paid by
I the railroads have Increased largely,
making operating expenses n greater
/ burden
He also declared that the outlook
for next year is not good ana that
general conditions are 50 considered
in the judgment OF merchants and
those familiar with the trend of
events Mr.. Ripley said he thought
1 il not improbable that next year the
earnings Of the road may shrink So
/ that they would not more than pay
the dividends
The pessimistic views of the presi-
! dent OF the road came in the direct
examination by Attorney Frank
Lyon counsel for the interstate COM
merce commission. and followed
I questions concerning what proportion
of each dollar earned by the road was
returned 70 the public IN the shape
Of wages for labor.
Are the general conditions Of bust
ness bad ?' asked Mr. Lyon
II would not say they are bad;
they are not as good ms they We're a
year ago, said Mr. Ripley.
What is the trouble, have you any
idea pc
"Well, / am not professor OF po-
ltical economy and do not care to
venture an opinion as to what the
trouble Is, but I think the coneensus
among the merchants and others III
this room is that the conditions are
not as good as they were a year ago,
and ! do not expect TO see as large
earnings as we saw last year
Reverting to the subject later In
the hearing under oross-examination
by Attorney clifford Thornc, repre-
senting livestock shippers in Iowa,
Mr. Ripley admitted that for ton
years the santa Fee had paid diyi-
dends
Il have nothing to prove that they
will be paid next year. or that we
shall default on our interest" said
the president Of the road, but this
last year, which was the largest gross
earnings we ever had. we kept mp
the property ana earned SIS per cent
on our capital stock, but | can see
expenses ahead of me for this com
ing year enough to warrant me in the
belief that we viii not any more than
earn our diviends, we might pos
sibly earn our per cent dividends.
In other words, | think 1t is not i'm
probable that our earnings may
shrink To q point where We will not
al. H.. 10
Ripley explained that by increased
expenses, he referred To improve
ments and Mr. Thorne commented.
$50 reduced to its ultimate analy-
sis, you think YOU arc entitled to in
creased rates in order 60 build these
facilities, is that correct?"
In order to keep up with the times
and do what the public expects of
as o" replied Mr. Ripley.
And make improvements above
what YOU had last year," asked the
cross examiner
Certainly, any railroad that fails
TO do that is bound for the slide"
Mr.. Thorne: You think that ought |
to be paid out of the operating ex-
penses2
Mr.. Ripley. Most certainly do.
Special Examiner Brown shut OF |
questions touching the bond issue for
the Kansas city depot by saying
The question of the Kansas city |
depot has nothing to do with this |
general proposition
In The course of the hearing the |
railroad introduced tabulation Of |
the interest on the stock after pay
ment OF the bond interest for the |
years 1896 to 1910
In cross examination Attorney John |
II. Atwood of Kansas City. represent |
ing "a group of shippers took up the |
discussion of some of the exhibits Of
fered hy the railroad ana called at
tention 10 an item OF 5000 appro-
priated for fuel reserve ia 1910. Mr.. |
Atwood compared the amount with |
much smaller figures for similar
charge Ina other years.
Mr. Atwood. Let me ask you N |
this triple disposition of funds, more
than three times that of the good
year 1909, to this fuel reserve, was
done because there was in the mind |
Of the management the idea that IL
would help TO make this lean show
ing. that Is TO be employed as aw
argument before the commission
now
Mr. Ripley / do not think IL had
any influence. lt certainly ala not
Win Nlf-s
President Ripley was questioned
the capitalization Of the
lines of the santa Pc sys-
lem which he said was included in
Inc estimate Of $3.50. 900 thnt
would hc required "a reproduce the
systcm's properties
From the figures at his command |
President Ripley declared that he WAS
unable 20 say where the Santa Fe
makes OF loses in the operation OF
most Of the subsidiary roads.
W r. Bailey general auditor Of
he system was the next witness and
be- "a once plunged into an array Of
intlres showing the Increase In 1
wages paid by the system now over
ghat was spent In former years.
Mr Bailey declared that BY apply
ne the wage scale of employees I'm
a0l 20 the employees of the road in Z
$40 the system would have saved {
more than ss,50o,0oo, while the ac-' .