The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-09-23
SHIPPERS CANNOT CONTRIBUTE
FUNDS TO ADJUST EcoNoM-
icAL DIFFERENCES.
LANE GIVES OPINION
Plea That Operating Cost Demands
Increased Rates Shaken BY
Testimony Of ST. Paul
Railroad Official.

must adjust their economical diff
culties by some other means than by
asking the shippers to continue toI
contribute funds therefor, in thel
opinion of lntertate Commerce Com
missioner Franklin X. Lane, as ex-
pressed during the hearing here today
of the western railroads, who seek to,
obtain general raise.
William Ellis, commerce counsel forl
the st. Paul road, testified that his
company Is suffering from too much
business, that an increase had meant
an increase of the unit Of cost which
grew faster nan the 'Llt Of income,
thereby threatening the yearly sur
plus earnings above the payment of
dividends, cost Of operation and nam
tenance.
Must Increase Rates.
AS Lou, ~ develops there Nill be
more and more freight delivered to
you, and as conditions are now, rates
constantly must be increased accord
ing to the argument OF railroad off.
cials.
u regard II as serious menace to-
the western railroads If rates are
constantly increased. We must work
out the problem on lines other thas
by the method Of raising tariffs. II
not, there is no time when we can say
The maximum is reached
This came as the result of an In,
luiry into ST PAU conditions es-
pecialg from the Puget Sound extern
eion. Ellis denied the commissioners
ageestlcn i.G the roads optimism
when It built the transcontinental ex'
ension had turned to pesslmIsm now
ellis said
III ii had not been for that road we
would have had nothing operating to
,dJ to our surplus last year. That
xtension added about $2.500, 900 to the
urpus in addition to $2,5S5,753 from
,thef sources over the total surplus
)f about $50.000,0oO'
Expense overtaking Earnings.
He said the expense cost Is over
alsing the earnings, and would con,
,inue to do so as long as more traffic
$ handled, as might be expected.
Ellis said II the gross income next
wear went 100000 from this years
igures of $G4,O0o0o0, the percentage
of profit would be less.
Attorney H. G. Lust representing
the Illinois Manufacturers Associa-
|tion, asked:
you say your gross income last
year from other sources than opera.
tion was s290OO,0O0. What are those
sources?"
Chiefly the Puget Sound division.
The ST. Paul owns all the stock, and
in 1910 received $G,0O0,000 interest on
he bonds
What" interrupted Commissioner
Lane. "Do YOU mean to say the Puget
Sound branch paid all the operating
expenses the first year and s6,000,000
interest on the capitalization
THAT was the interest for a year
md half. 1t also earned surplus
If sS,000,000
Ellis also said the division was paid
or "by bond issue OF 100000, 00n
sold stock"
st3,ooo.ooo Profits.
"And in addition to the surplus
per cent dividends were paid on that
ssue last year," asked Lane.
"Yes."
about $13000000 profit all told;
hat is, for each $7OO0.0O0 or so paid
)ut you received in this space OF time
II 900, ,000?"
Then call the attention of the
committee to the absolute failure OF
this company to include that sum in
the surplus given in their latest re-
port to the commission"
The Mysterious Cause.
Now" said Commissioner Lane,
I'VE come to what / am beginning to
call the mysterious cause OF the ap-
parent cost Of operations, What is
tn"
Ellis replied Every session or
congi ess or legislature has decreased
the earning efficiency OF the dollar
expended upon labor. Eight-hour days.
sixtoen-hour telegraphers' limitations,
restrictions In regard to rest hours cf
The day; all these have cut down a
dollars efficiency. | still say that la
Dor Is big factor in the incidental
cost"
Ellis admitted that the company In
The last ten years had sold several
million dollars worth Of stock 70
stockholders at par wAen 1t was quo
ted In the open market at from s2.so