New-York tribune., 1910-09-01
MAY TURN THE TABLES
Railroads Likely to Subject
Shippers to Inquisition.
FORECAST AT RATE HEARING
F. o. Melcher, of the Rock ISL
and, Tells of Roads In
creased Expenses.

r,hicspo Aug. s-Coincident with the
closing Of the testimony for the Santa + o
system before the special examiners iol 'iio
Interstate Commerce Commission anu 'iio
statement from the roads statistlclan tiiaI
the increases In freight rates asked "ouiu
net the Santa Fe only $4,000 increase yearly
in earnings, there came to-day sueseS
ton that the railroads now on the oe-
fensive might change their tactacs ahu
seek to compel the shippers VINO opPoso
the advance in freight rates, 10 oeclaie
how much they profit on the different COM
modities under consideration ana INC Ie
turn they enjoy on their invested capltai.
reouest from F ]. Norton. counsel for
the Santa Fe for the names or the oiliei
ent associations of shippers represented IN
the hearing, that he might quesuoh certain
of the shippers, gave color to these reports
One prominent railroad man declared tiiat
+ba railroads might well ask the shippers
what their profits are on the comnloultieS
affected by the proposed increase IN 1reisht
rates SO that the commission may hno"
vhether they are or are not seriously dis
+urbed hv the increase which they are
fighting.
F. o. Melcher, second vice-president OF
the Rock Island Railroad Company told
to-day of increased expenses or the roao
IN LATE wears due. according to him, to ad-
xanoes in the wage scale and increased
cost of operation He was questioned by
W. s. Dickinson, counsel for the road ;,
Mr.. Melcher offered in evidence table
showing that Increased wages paid in the
oneratins department Of the road amounted
in 1906 and 1907 to s52S00O, in 1907 and 1908 TO
4,0oo in 1905 and 1909 to s1.314ooo, IN 1903
and 1910 to s1451,ooo, and in 1910 and 1911
the estimated increase would total s2,6l2,ooo
Mr.. Melcher said that in his opinion the
road does not get more efficient labor py
reason of the increased wages. Some OF
the Increases he said, were the result OF
threatened strikes which were settled ana
some were granted after arbitration
The argument advanced by the en-
ployes in 1906 for an increase he said
was that the roads were prosperous ana
the men wanted a chunk of the prosper
ity"
In the later pleas for advanced wages
the men argued that the cost Of living had
increased. and for that reason demanded
more money.
Mr.. Melcher declared that in his opinion
no change is likely to restore any part OF
the wage increase unless the road can get
more for hauling freight.
In the fiscal year just closed said Mr.
Melcher, the gross earnings increased
s53O0,00o and the operating expenses in
creased s5,500,0 900"
He also commented on the legislative
measures, which had Increased the cost Of
operating the railroad.
Il do not object to the safety appliance
law" said Mr.. Melcher; lit was a good
thing but it does not save money. We
have to have as many men on a train now
as before the automatic brake was in
stalled The hours of labor bill was a
proper bill, but has required more men
and an increased expenditure. Other re
quired regulations have been good, but
they all cost money and go TO swell the
increased cost of operation. Altogether,
should say that the increased volume of
traffic has not kept pace with the increased
cost Of operation"
James Peabody, statistician of the Santa
Fe system, belittled the effect of the pro-
posed freight rate advance when he took
the witness stand to-day.
IF the proposed advance were to be put
into effect and to remain in effect for one
year" said Mr.. Peabody, "the Santa Fe
would earn only $500 more than it is
earning right now"