The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-30
RATE ADVANCE CASES
ARE NOW BEING HEARD
Commerce Commission Takes
Up Hearing At Chicago
STATISTICS PRESENTED
Large Lines VIII Not Urge Poverty ms
Necessitating Rate Advances.
Shippers Are Fully Organ
lied For Fight
STATISTICS PRESENTED

Chicago, August 29.-Attorney John H.
Atwood, of Kansas City, acting as coun-
sci for the shippers. cross-examined E
p Ripley. president of the Atchison. To
peka and Santa Fe Railroad, at the in
terstate commerce commissions hearing
on the proposed freight. rate advances
today
Attorney Atwood submitted voluminous
statistics showing that the earnings OF
the Santa Fe Railroad from freight and
passenger traffic had increased from
s7S,000.00o in 1906 to 800, O0o,o 900 in 1907.
President Ripley admitted the correct
neses of the figures.
Surprise was evidenced when Mr.. Rip
ley, in response to questions by Attor-
lieve the proposed wage increase of
100000 for the Santa Fe should be con-
sidered at all by the commission in its
effort to determine equitable rates.
T. j. Norton, attorney for the Santa
Fe, made reply to Attorney Atwood,
apparently with a view of altering Mr..
Ripleys statement.
NO" interrupted Mr.. Ripley that's
what 1 said and I mean that Attor-
ney Atwood endeavored to get Mr. Rip
ley to say that the railroads wished to
increase freight rates that they might
share in the general prosperity of the
country, but in this he was unsuccess-
full. Mr.. Ripley said he believed i'm
proyements from which the railroad
received no income should be made with
money from the railroads earnings rath-
er than from its capital income
In other words. it is paid for by the
shippers in rates." suggested Mr. At
wood
Mr.. Ripley nodded assent.
According to President Miller, of the
Chicago, Burlington and Quincy. the
large lines will not urge poverty as ne
cessitating rate advances Mr.. Miller said
that business necessity and expediency,
rather than verge of bankruptcy" argu-
ments would be made.
The shippers have been organized to
fight the proposed schedule for some
time The campaign is being directed by
joint subcommittee of traffic experts
cago.
The shippers claim that the railroads
have padded records of their operating
expenses In order to make 1t appear that
an advance in freight tariffs is demanded
by common justice to investors in their
securities
President Ripley, of the Santa Fe sys-
tenn, the first witness, testified that the
road was not earning a proper percen-
tage on the investment.
Why" he exclaimed, I'VE were forced
to sell at issue bonds at an aggregate
discount of 5000"
Should rates be increased so that i'm
provements may be made direct from
earnings?" asked Attorney Norton, who
represents the Santa Fe,
yes, in part" was the answer.
Witness said there were Improvements
which must be made but from which no
increase in revenue can be expected,
among them being track elevation and
construction of new passenger stations
ITO what extent would the proposed
advances be reflected in the cost of liv-
ing?"
THE amount involved is comparatively
small. The advances affect only tive
classes of freight So far as the ulti-
mate consumer Is concerned, I think il
would be negligible. There is not, l be-
ieve, family in the country which
would detect any difference in the
prices"