The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-09-23
SHIPPER SHOULD kOI Be
the ONLY BURDEN BEARER
Problem Must 30 Worked Out
BY Method Other Than By
Raising TaIlit, SAYS Lane
.~rrE1y- -
(By Associated press.,

Chicago. Sept, 23--Rallroads must
adjust their economical difficulties by
some other means than By asking
shippers to contribute the funds there.
lore IN the opinion of Interstate Com
meroe Commissioners Franklin X.
l.al'y. as expressed during the toar.
ing here Friday. Railroad officers ana
attorneys sought to learn Ii le lom
missioner implied there must W. re-
adjustment OF the methei 81 hnanc-
lng big carrier systeMg, but Mr.. l.ant
/ ignored the efferts, and continued to
ask the witness to whom he had di.
feeted his startling remarks pointed
questions on the amount and dispJsi.
! ton Of earnings OF the railroad in
question, the Chicago. Milwaukee &
st. Paul
me wi.ness. whose testimony eyok.
ca Cds display of the commissioners
!, rdgment of the merits OF the rail
roads present plea for higher rates.
was William NJ, Ellis, commerce coun-
sci for the St Paul.
Ellis had testified that ls com
\ pany was suffering from too much
business, tlat the increase had meant
ali increase In the unit Of income
thereby threatening the yearly sur
/ pins Of earnings above payment OF
dividends and cost of operation and
vi maintenance.
4 Commissioner Lane TIN said:
AS the country develops there viii
be more and more freight delivered 10
vntt aud nc nnndftfnng nm. nnu. tna
rites constantly must- be incrsas j,
according 10 railroad Ollie ais 4 lrgu,
III as menace TO the country IL inc
rates constantly are to be increased.
We must work out this problem IN
lines other tlan by the prep )sel m III.
ot of raising the tariffs If not. there
- no time when we can say the msNi.
mum has been reached
This unexpected development In tho
rate hearing came as q result Of The
inquiry into the st. paul's profits.
Mr.. Ellis. II the gross ilc0Aie next
year went TO $79,000,00O, from THIS
years figures OF s6i.00O,CG0 the per-
centage OF profit would be less. DO
YOU mean TO Say the cost Of doing Tie
additional slg.O00.C00 in business
would be equal TO that sum" was ask.
cd.
Il mean the percentage OF prof.;
would not be so great said Mir. Ellis.
Attorney Lust representing the H.
llnois manufacturers, asked
Mr.. Ellis. you say your gross ~
come lass year from other sources Wd..
S9O00.000. What are these sourcns2''
Chiefly the Puget Soun divisions"
he answered.
The ST. Paul owns all the stock.
aid In 1910 received $1,000 goo IN The
bonds" interrupted Commissioner
lane again
DO you mean to say that Puget
Sound branch paid all its operating
expenses for the ten years and In ad-
dition $6,O00.e0O interest OH its csTital.
ization?"
We'll, that was interes. for year
and a half F"weyer, it also ear-ed
surplus of nearly s3,0006'
How was the Puget Sound diys'on
paid for?" asked Mr.. Lane.
by bond issue of sl00.000,c1N
sold to stockholders"
And In addition to telI surplus a 7
per cent dividend was paid on that
issue lasi YEAR,
YES
Presumably, MIR. Ellis had admitted
his company in the last ten years had
sa.d several millions OF dollars worth
OF stock to stockholders at par. whel
it was quote1 in open market at FROM
S2l0 down 10 $50. ard teh stock mad
Sc paid per cent dividend.