The sun., 1910-06-02
HITS RAILROADS VERY HARD
APPREHENSION OTER REN Its
OF GOVERNMENTS err SlDE.
Railroad Nen PSlni 10 Decrease 1T Nrs
Earnings That Iias GsRr NlonE NTH
lRerease IN GFo-S Hope the Caurts
Nm Nate That Other Prlrrs Are %.

! "" Nete ihaA Wlhff Frtrrh NFe y
The Government prqCeedinE 10 preven
twenty-five Western rHlds from rlisini
freight rates has been followed by vigor
ous protests
| Theodore Voorhees,, vice president o
tho Philadelphia and Reading Railway
! who sailed Tor Europe Yesterday On ih,
Adriatic expressed his opinion ~ Tot
lows
4 believe the inIunction Will have
a serious effect upon general business
conditions don't believe. however
that the Eastern roads will get into thaD
, predicament when the subject II their
increasing rates comes mp next fail
There has been feeling of uneasiness
IN the business world for some time past
due tn the legislation 40 Washington.
The big manufacturers in eastern Penn
sylvania have been complaining Recently
of a falling oH or orders and this seems
20 be general throughout the country
" X Newman, former president OF
the New lorN Central who was also a
passenger on the Adriatic yesterday. said
-l believe the sentiment oi the country
is gainst the increase in rates. ID NAV
possibly mesn great injury 20 business.
still you cannot tell what may happen
in the next twenty-lour hours. Business
conditions ~ a rule are good, but this
injunction suit may mean serious set
back
Jame- J. Hill president of the Great
Northern. was not anxious 10 cxprrs
an opinIhn. but he was finally prevailed
upon - sy few words These vera %
the edsct that he knew of nothing in
the sherman antitrust law which could
be 50 interpreted as 10 prohibit the roads
from iiling their increases IN concert.
Newman frb. chairman II the execu-
tive board of the Ann Arbpr Railroad.
sid
The railroad companies do not wish
to do anything unlawful and are them
selves Interested in knowing whether
their proceedings have been lawful
The interstate commerce ar' requires
them TO unite IN establishing through
rstes and joint tariffs Tor interstate
business and imposes severe penalties
Tor violations of this provision The
sherman law prohibits them from uniting
m restraint ~ trade, ~ 'hs railroads are
betwee' 'wo fire.
r 4 Delano. president Of the Wabash.
spoke up without reserve
The Missouri River rate decision. h.
said. -is much mOre serious than tho
Wickersham rats Injunction. because
there is no appeal and no remedy. whereas
We are sure we can pers lade anv fair
minded court that rates should he ad.
vancsd The Missouri decision 10 fa-
reaching and j. very serious matter
10 commercial centres and railroads
Il destroys our entire system Of rate
making, and there are seven points on the
Mississippi and Missouri rivers where
rates hreak and he tariffs ara hasad
on certain arhitraries n the arbitrariss
are declared Illegal our tariffs go 90 pieces.
and commercial relationship becomes
chaotic No business can succeed " here
purchasers hx the price
z. p Ripley. president u the Atchison.
says that shippers have been deceived ~
compiIrrs of igures used in 6ghiing the
rate increases
Where the returns for the calendar
year 1917 showed earnings from operation
Of 81 So per mite, he said yesterday.
-thoss for 1919 showed only slI.Os1. or
Sles les per mile Our gross earnings
arr increasing but our net earnings are
decreasing
n L Nudge. president Of the Chicago.
Rock Island and Pacific. backed up tins
assertion with the statement that all tho
Chicago roads showed net decreases for
the nine months just ended Ne sddsd
thA, in hrs opinion the Government should
20 SLOW IN preventing rate advances .
Ons II the bankers who handle the
financial ahairs ~ the Hartman lines
said
Undoubtedly Tho negotiations now
pending for tho sale of American securi-
ties abroad will be seriously afected by
this uns sypected development In fact.
no ons can iorrsao how far reaching NAV
no the ultimate consequence.
The Government has for many years
heen aware that railroads employed the
general principle that hetwsen two gwen
points rates should bs the same over al
line This custom evolved a. the one
escape from internecins war Suddenly
the matter ~ taken 70 court and. unlike
loo Government. the courts are not hound
n respsct custom. however good or
essential y may he Apparently the
Government has a good case The rail
rnAds were gully " folly In not delaying
tho rate advance question another month
when congress would have adjourned
One ~ Edwin Hawlev's associst~s
pTOphesied a reversal " sentiment as soon
"a tho real facts ~ the situation become
known.
~ will not be long he said. "bef0re
the people who have 40 vigorously resisted
increases will regret v, and regret II IN.
cerslv ] refeT chiefly ~ the shippers
The increases IN operating costs. which j
every month turn gains in grUss earnings
into losses IN net. hear witness % the need
~ the railroads tO sustain their credit
Obviously " the railroads 3re eguallv I
pOwerless n Increase the volume Of their I
business or 20 reduce tn" cost ~ handling I
H. which IL Just the situation. the only |
relief lies IN raising tho price for service.
-If this n denied and tkyH railroads are I
forced ~ staEger along under an intOler- .
able burden, what n the result The rail ,
roads. which. remember are the biggest !
wholesale buyers IN the country, will
shut down uDon purchases of cars and !
-.aIa faa- IL