Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-11-01
Three to Five Per Cent Reduction in
Revenue Resulted,
DAD EFFICIENT IN COMPARISON
System Not in as Good Condition to
Make Surplus,
CONDITIONS HAVE CHANGED NOW
Greater Demands on Earnings, Par-
ticuInrly I'm Matter of wREeS-
BiE sum Needed TO Main-
tain EfficieBOy.

CHICAGO. Oct a.-Rate decisions ~
Denver. Spokane and other Ns' Tn pointS
will cost the Chicago, Rurllne-oN \ oui"oy
SsOoOoo.
The old rebstina syster reduced the
freight revenue OF the Burlington from
to per cent.
The Burlington ls not in as good a oondi
ton to accumulate a surplus now as II
was ten years ago
The foregoing were among the statements
made at the rate hearing today by Claude
q, Burnham vice president OF the Burl.ng-
ton. who was the first witness. Attorney
T, ]. Norton, who represents the railways
as a whole at the hearing, stated that he
had only one more witness to introduce
on the subject OF western rate decisions
Mr.. Burnham said;
THE decisions have not been ordered
into effect as vet but unless they are
materially modified they will conservRuvely
cause the Burlington loss OF $4,000
nually."
Rebates and Revenues.
Attorney Dawes of the Burlington asked
what effect on revenue rebating east OF the
Missouri had before the law made the
practice illegal.
Rebates were given almost exclusively
on hlgh-class freight" replied the witness.
The result was rate that was much
lower than was fair 20 the railroads. But
at no time did rebates cause more than 9
3 to per cent decrease in the revenue Of
| the Burlington"
You have mentioned" said Attorney
! Lyon of the commission, that the pro-
| posed increases would give the Burlington
road about 5000 For what purpose do
/ you want that money -
"The Burlington needs s4OO.OO0 and more
/ so maintain the efficiency Of the property
as a transportation machine"
do you regard the Burlington as an eff
Client transportation machine at present.
pursued Mr.. Lyon
'As compared with other roads. yes
In Worse FinahciaI Condition.
When Mr. Lyon inquired II witness con.
sidered tho Burlington to be IN worse
financial condition that It was in 1900 tha
latter hesltsted and then answered slowly:
IL 10 not In az good a condition to nc
cumulate a surplus"
Mr. Lyon made a comparison OF the divi-
dends paid in 1900 and 1910, and OF earnings
and asked IL witness still main tanned that
the road was in a worse condition with re-
gard TO a surplus than II was ten years
ago.
Conditions have changed; they have
changed IN the last six months. There are
greater demands on our earnings, particu-
larly in the matter OF wages"
Attorney James representing the ship
psrs, asked a number OF questions concern
ing meetings Of the Weztern Trunk Line
ASSOCIATIONS He was interrupted by Attor-
ney Dawes Of the Burlington, who declared
that II Mr.. James were attempting TO lay
the basis for a suit in equity the witness
should not answer Mr. James disclaimed
any such intention and was allowed 20 ask
} II at the meeting any rate was objected &c
: by any road,
! Il don't know" was the answer
watch Profits of shippers.
Wasn't one Of the considerations In ad-
vancing rates the selling price OF the com
modlties affected?" Mr.. James asked
Yes"
Witness explained the selling price Of
) furniture as an instance figured in deter
! mining to increase the rate on furniture
! between Chicago and the Twin Cities
, did you call In the shippers with regard
TO this rate?" inquired Mr.. James.
{ NO Our experience has been that 81
a we did there would be no increase We
have 800 men who are constantly Employed
p In reporting the profits made by the
manufacturers and shippers on all lines Of
goods"
Asked how increased revenue would bs
used with respect to improving terminals
Mr.. Burnham said that, for instance. his
road would expend $4,000 IN building q
teaming track from the heart Of the citS
OF Quincy, H.. 70 the roads terminal a,
, that city
And II the increase is not Erantsdg"
Then / doubt that Il can he buflf