The Birmingham age-herald., 1910-08-31
President Ripley of Santa FG Contends for Higher
 Rates 0n Freight
OUTLOOK FOR COMING
 YEAR NOT FAVORABLE
w. F. Bailey, General Auditor of the Road. Presents Figures Showing Great Increase In Wages of the
 Present Over Pnst Years

Ripley of the Santa Fe system of rail- ways, on the witness stand today be- fore Special Examiner c. M. Brown of the interstate commerce commission, in support of the contention of the rail roads that higher rates are just, said that wages paid by the roads have in- creased largely, making operating ex- penses a greater burden. He also said the outlook for next year is not good and that general conditions are so con- sidered in the judgment of merchants and those familiar with the trend of events. Further on in his testimony MT. Ripley said that he thought it not improbable that next year the earnings of the roads may shrink so that they would not more than pay the dividends.
 President Ripley occupied the stand until 2:30 o'clock in the afternoon and was followed by W. E. Bailey, general auditor of the system, and James Pea body. Santa Fe statistician, who were questioned regarding items of expense and earnings contained in different ex- hibits presented by the road.
 The pessimistic view of the president of the road came in the direct exomin- ation by Attorney Frank Lyon, coun- sel for the interstate commerce com- mission, and followed questions con- corning what proportion of each dollar earned by the road was returned to the public In the shape of wages for labor and operating expenses.
 Looks For Decrease
 "We are likely to see a decrease in | n months," MT. Ripley said.
 What de you attribute that to-" MT. Lyon asked.
 q attribute 1t to general conditions, of course was the reply
 What are the general conditions of business?"
 T would not say they are bad, they are not as good as they were year ago." said MT. Ripley.
 What is the trouble, have you any idea?"
 Well, l am not professor of po- litical economy and l do not eare to venture an opinion as to what the trouble is. but I think the consensus among the merchants and others in this room is that the conditions are l uOl dS SOou dS tlty Weic ytdI dSO and I do not expect to see as large earnings as we saw last year"
 Attorney Lyon for the interstate commerce commission then directed the attention of the witness to the statis- tics of business done by the Santa Fs road in July of this year and MT. Rip ley admitted that the figures of busi- ness transacted in that month by the road would not substantiate such d pessimistic view.
 | tabuation of expenditures of the road for some years was introduced by Attorney T. J. Norton, general counsel or the Santa Fe, and Attorney Atwood commenting on some of the totals, called attention to one of $70o,0o0 set apart for fuel reserve expenditures for the year | l9iC and said
 l Questioned About Fuel | MT. Ripley, does not the setting apart of s7oo,000 for fuel reserve for the year 1910, when in 1908 sl5S.po0 was spent and in 1909 sl9lO0o was spent for the same purpose, indicate a desire to make lean showing for 1910 which might affect the success of establishing the desired in- | creased rates?"
 MT. Ripley answered: | No"
 | On redirect examination Attorney Nor ton reverted to the testimony of yester- day when it was declared that the bonds of the company were sold at discount of s. 900, 600.
 l We could have sold the ponds without discount had they been 5s or 6s instead of is,'' said MT. Ripley, and they would have sadded 1 or ? per cent on the in debtedness for future generations to meet"
 | Reverting 10 the subject later in the hearing under cross-examination by Att torney Clifford Thorne. representing live- stock shippers in Iowa. MT. Ripley ad- | mitted that for 10 years the Santa Fe had paid it's dividends.
 | q have nothing to prove that they will not be paid next year, that we shall | default on our interest,"" he said but | this last year, in which the gross earn | ings were the largest we ever had. we kept up the property and earned SS per cent our capital stock. But l can seq expenses ahead of me for thls coming | year enough to warrant me in the be- | lief that will not any more than earn our dividends; we might possibly | earn per cent dividends; in other words I think it is not improbable that | our earnings may shrink to a point where | We will not earn any more than our div | idends." Expenditures Explained l MT Ripley explained that by increased | expenditures he referred to improvements and MT. Thorne commented: | "So reduced to it's ultimate analysis, | you think you are entitled to increased | rates in order to build these facilities, Is | that correct?'
 Tn order to keep up with the times and do what the public expects of us,' | replied MT. Ripley.
 And make Improvements above what you had last year?' asked the cross-ex- aminer.
 "Certanly, any railroad that fails to do that is bound for the slide, said MT. Ripley.
 Mir. Thorne You think that ought to be paid out of the operating expenses?" | MT. Ripley: Most certainly I do." | The examination of President Ripley was interrupted by the midday recess | and on the resumption of the hearing he was questioned concerning the cape