The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-08-31
EXPECTS EARNINGS.
TO SHOW DECLINE.
President Ripley, Of Santa Fe
System, Is Pessinlistic
Over Outlook.
DEFENDS HIGHER RATES
General Conditions Not as Good
AS They Were Year
Ago.

Chicago, August 30.--Prcsident E. p.
Ripley. of the Santa F'e system OF
railroads. on the witness stand to-day,
before Special Examiner G. NJ. Brown.
of the Interstate Commerce Commis-
sion, in support Of the contention of
the railroads that higher rates are
Just and right, declared that wages
paid by the roads have increased
largely, making operating expenses a
greater burden. He also declared that
the outlook for next year is not good.
and that general conditions are SO
considered in the judgment of mer-
chants and those familiar with tho
trend of events. Further in his tes-
timony Mr. Ripley said that he thought
1t not improbable that next year the
earnings of the road may shrink SO
that they would not more than pay
the dividends
President Ripley occupied the stand
until 2:3O o'clock in the afternoon.
and was followed by w. z. Bailey.
general auditor of the system. and
James Peabody, Santa Fe staMstician,
who were questioned closely regard
ing items of expense and earnings
contained IN Il ulfIefenta EXHIBITS pre-.
sented by the railroad.
View Is Pessimistic.
The pessimistic view of the pres!-
dent of the road came in the direct
examination by Attorney Frank Lyon.
counsel for the Interstate Commerce
Commission. ard followed questions
concerning what proportion OF each
dollar earned by the road was returned
to the public in the shape of wages
for labor. and in operating expenses.
I'VE are likely to see decrease In
our gross earnings in the next twelve
months" said Mr.. Ripley.
What do you attribute that tor"
asked Mr. Lyon
II attribute it to general conditions
OF business" was the reply.
Are the general conditions of busi-
ness bad?''
II would not say they are bad; they
are not as good as they were a year
ago." said Mr.. Ripley.
What is the trouble; have you any
ddea?"
j DO not care to venture an opinion
as 70 what. the trouble Is, but think
the consensus among the merchants
and others In this room is that the
conditions are not as good as they
were q year ago. and do not expect
to see, as large earnings as we saw
last year"
Operating Expense Increase.
Mr.. Ripley estimated the increase In
operating expenses at $500. 900 for the
fiscal year 1910, as compared with 1909.
Cost OF maintenance of way was during
the same period Increased 81 1900. 900 he
said 77 \ = - - -
"out Of each dollar received by the
road about 10 per cent. goes hack to
the general public In one way or am
other" said Mr. Ripley,
w. E. Bailey, general auditor of the
system, gave an array of figures shows
Ing the increase in wages paid BY the
system now, over what was so spent In
former years, The discussion Of the
tables which the auditor presented was
technical, and the figures required
much explanation before ATTORNEY
Lyon was satisfied to let the witness
proceed TO other details, Mr. Bailey
declared that by applying the wage
scale of employees in 1901 to the en-
ployes of the road in 1910, the system
would have saved more than S6.30O,OO0.
while the actual increase In the
amounts paid for labor in 1910 over
1901 was s2l,750.000, the difference In
the figures showing the increase be-
Ing accounted for by the greatly In
creased number Of employees.