The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-06-29

Letter from w. c. Brown, president
of the New York Central railway, to
the chairman of the board of man
ayers of the Business Mems league
of ST. Louis, on the subject of freight
rates:
Il have been associated more or
less intimately with the business men
of st. Louis for nearly thirty years,
and | doubt if there is single one
of them, whether a member of your
association or not, who will object to
a reasonable increase in the earnings
of the railroads, which can be made
only by an increase in rates, if he
will conscientiously, and without pref
udice, investigate and analyze the
conditions that confront the trans
portation interests of the country at
this time
Beginning early in the year, cam
paign for increased rates of pay was
begun by organized labor, in railroad
service. The companies embraced in
the New York Central lines opposed
this increase, inch by inch, not for
the purpose of defeating it entirely
for we believed, in view of the large
increase in price of everything that
enters into the cost of living, rea-
sonable increase was justified. Our
position was for the purpose OF keep
ing the increase down to the lowest
possible figure
In every case. we have resisted up
to the point of precipitating a disas-
trous struggle with labor, which
would have cost the business inter
ests of St Louis and the country in
finitely more than it would have cost
the railroads; and then we yielded
only to the extent of demanding arbi-
tration. AS result of the arbitration
which has been made the payrolls of
the New York Central lines have
been increased something like $780,
600 per anpum.
/ sat at lunch the other day with
the presidents of five eastern rail-
roads, and, in comparing notes, We
found that the increase in the payrolls
of the roads represented amounts to
something like 39,500,000 per annum.
The Cleveland, Cincinnati, Chica-
go & st. Louis railroad having for its
termini the prosperous and growing
cities of Cleveland, Cincinnati Chi
cago and ST. Louis, reaching Lousi-
| vile and Cairo on the Ohio river, and
extending as far west as Peoria, ira
4 ~ nf n1nCt
prosperous section of the United
| States This road is capitalized at $685.
394.23 per mile, which, | think you
will admit, is very reasonable; but,
Notwithstanding this fact, it has only
been able to pay 2 per cent on its COM
mon stock in the last two years. or an
average of per cent per annum.
The increase in wages on that road
amounts to from 100000 to $1,000
900 per annum, and unless reason
able increase in rates can be secured
you can determine for yourself the eff.
| feet this will have on the ability OF
/ the road to pay any return whatever
on the money invested.
He LAKE ETlC anu WcSbSIH Idll-
road, running from Sandusky through
the best portions of Ohio, Indiana and
4 Illinois to Peoria, has never paid a
\ dividend on its common stock, and fol
some time, has not been able to earn
a dividend on its preferred. In the
year 1908 money had to be borrowed
to pay interest on it's funded debt, al
though this road is also one that is
moderately capitalized.
Early in the year 1907, increases il
pay of railroad employees and legisla
ton limiting hours of labor of tele
graphers and trainmen, added approx
mately 100000 per annum to tht
payrolls of the railroads of the coun
try. The present increase involves ap
proximately the same amount, makins
an increase in the pay rolls Of the rail
: roads. within three years, of some
: thing like sA50,000 per annum.
: The increase referred to, early II
) 1907, increased the payrolls of tn
: New York Central lines approximate
!, sS,000,000 per annum, making in tn
/ neighborhood of s16,00000O per ar
{ mum added to the payrolls in less thai
three years.
There has been no material increas
in railroad rates during the last te
r years. As a matter of fact, rates hav
e been changed during that time on al
/ proximately LOO commodities O
Y about nine hundred commodities
/ rates have been slightly increased; o
t about eight hundred they have bee
(, decreased; but the aggregate result {
r all hanges-increase and decrease
( shows a net decrease. These figure
], do not include the present propose
+ increase in rates.
b During the same period, the cos
= of crossties has increased 116 pc
It cent: crankpins for locomotives, 1(
It per cent; cast iron pipe, SO per cent
e bridge timber, SO per cent; car sidinl
it 50 per cent: box cars, 72 per cent
S grey iron castings. &c per cent; c,
e nails, 63 per cent; piston rods, SO pr
g cent; bar iron, "a per cent, car axle
n So per cent; angle bars, AZ per CEN
g malleable iron castings, 80 per CEN