The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-06-15
Necessity for General Advance
in Freight Rates."
INCREASE In WAGES.
Rock Island Will Soon Give Over
One Million.
Other Items Of General Interest
in Railroad World.

- LIE IedSOBS WHICH nave 1npetl6Q
the railways to attempt to make a
general advance in freight rates are
thus set forth by the president of the
Rock Island lines:
With reference to the question OF
the proposed increase in freight rates
which the western railroads planned,
my views of the situation. briefly ex-
pressed are as follows:
There has been large increase in
the cost of railroads of materials and
labor in the last five years. The in
crease in wages has not come each
year, but it has occurred twice in the
last four years. We have had to meet
not only the increased cost of our own
construction and operation. but the
manufacturers have passed along in
| their prices to US the advance in the
cost OF their labor and materials. We
pay our own increased cost of living
and likewise the increased cost of liv-
ing OF our employees. The rise in ma
| terlals has been chiefly in lumber and
coal, and especially in railroad ties.
Cost of Operation Grows.
''The cost of operation of railroads
mas also been increased many millions
or dollars in the last five years by rea-
son of various state laws regulating
hours of labor and other methods of
operation.
are about s6o0,000,0O0 higher this
year than for the previous year.
we have, by various improvements,
offset to some extent the advance in
| cost but we have reached the limit in
that direction Larger cars and en-
Sines, better equipment and other i'm
provements generally have enabled us
TO overcome portion of this increased
cost. Now We are going the other
way, and, in spite of these improve
Xx-a n rn inc
1.-The railroads most seriously affect
ed by the rate increases that are be-
ing discussed now have for the nine
| months of the present fiscal year
shown quite large gain in the vol
ume of traffic. and a consequent large
increase in gross receipts but practi-
cally every one-I think every one
will show a decrease in net earnings
| the net revenue over the same period
| last year-and they will show this be-
fore the wage increases really become
effective.
Increase in Wages.
1.-THE wage increases of the Rock
Island road, when they are finally eff
fective, will amount to over $1,00O,0O0
a year. As We are already showing a
decrease in net earnings, 1t is difficult
| to see where we will get the money to
meet the advance in wages, and we
certainly will not have money to spend
on improvements which will be need
| ed to take care of an increase in the
volume of traffic.
1.-The increase in rates proposed only
covered a small percentage of the total
Enthusiastically not over % per cent.
1t was recognized from the start that
there was a large proportion Of the
traffic on which the rate could not be
advanced, BECAUSE i'll some cases. of
the value of the commodity, and, in
others, because Of the market colnpe-
tltion, which prohibited increases.
Therefore, only those comm ODDITIES on
which the freight rate is a small per-
ccntage of the price of the article were,
as rule, the ones considered.
Money Needed for Improvements.
THE company hoped to get the in
creased revenue to put into the pro-
perty. This would not only have en-
hanced the value If the property and
have benefited the shippers greatly.
! The most of the men in charge of these
railroads feel that they should expend
more money for improvements. They
want more equipment, double tracks
| in some cases, and better terminals in
| order to properly care for the natural
increase of the traffic of the country.
| That was the main purpose of tho eff
| fort to get more net earnings, and
| without larger net earnings it is abso-
| lutely imp .ssilsle to secure the money
| with which to get all of these better
n1ents. SA
For that reason it has seemed to me
| that the manufacturers and larger
commercial interests in opposing these
| rate increases were really harming
| themselves and tller own best inter-
| ests.
1.-The roaos are not and have not been
| for several years IN condition to pro-
peT1y take care of the maximum traffic
| during the heavy traffic season and
| Trey never will be able to do so I'M
less they can increase their net reve-
nue.