New-York tribune., 1910-09-22

surplus He beliFNeO lhhA l+Is e1i pios
sbr,,ld be expended in additional or i'm
nroved -5-operry. and draw dividend from
the earnings
Must Get -igher Rates.
The Northwestern LIRE VIII net 60 into
bankruptcy next year. or the year after. or
she one after 1fat uniess Il now raises
rates began M Garhne-, touching upon
rAis subject, but ] do say that regulation
by the commission does not control the
commercial conditions under which we get
money ane. unless we soon may get higher
zatcs we will IN the future. have 10 run
out the red haG. We must be allowed q
satisfactory cash surplus above everything
each year ar a barometer Of or surety for
credit
Would you stiu say you should have a
rasht 20 secure that yearly surplus II you
knew voar road had. IN ten years paid On
$500 600 OF stock dividendE amounting 10
Ss6oc0oco and had. n addition. an uraPpTo-
ur1ated surplus. taken from earnings, OF
SsO.O00.eoo more. an amount q net return 70
t-roctholders Of more than The capital
STOCK" asfed Attorney Lyon
Yes: would. I consider 1rs need only
from the standpoint Of keeping Up credit" !"
And IN the face OF the showing ] men
=
maintenance OF credit"
y 10" answered the vice-president
Attorneys for the shippers expressed
some surprise ~ the railroads low est
mate OF the increase IN revenue called for
" the advances scheduled now under dts
-1,ssion The Illinois Cent-al's estimates
o. fts gain II the rates be made effective
- approximately S57.0Oe for next year and
that Of the Chicago, Milwaukee & 81.
Paul road S5s7.Rso.
During Z discussion II WHs explained by
tfae attorney for these roads that while the
present controversy hinged on proposed
increases on only a few commodities, the
roads were endeRvo-ing TO make IL a
broader question, that would embrace
general increase On al commodities, be-
csGse OF the alleged poor financial condi-
7iou into whlch the railroads are said 10
ne drifting
Il was decided that this broader question
-rouid be entertained and that railroads
should present testimony 70 this md.
Increase in Wages OF Labor.
Nj Gardner said that the labor pay in
crease was = bls factor and was tns chief
one IN estimating the probable increase in
operation cost for the coming vear- thai, f.
addition 70 the present controversy with
the enginerner. which might mean an ad-
sitti0n 81 S4o0.0Oo 20 the payroll. there was
an additional payroll of S1Se0a.00a that had
not Vet come up for possible revision.
When you consider that our payroll IS
=. s.e0o.sso q month. sou can sec Row that
Influences cost Of or,e-ation
How about cost II materials for gen
~7s1 maintenance and opers-ion7" was
esked.
''Why. tha cost hu-ruRtes r. years
-ould say This wasn't material factor in
Increased maintenance cost.
increased TrsHis Revenues.
r. 4. Fort. general freight rate agent
for the northern division Of the Illinois
Central road. war IN the witness chair for
few moments. Es estimated that the
increased tariff would bring the road Al
increase - revenue q SS7.g2s 30
william Els. the Chicago. Milwaukee, 4
s. Paul Railrosd's commerce expert in
r-edUce6 \ table indicating that II the
proposed advances were allowed TO 20 inro
e1sc1 the St Paul roads revenue vvoulo be
increased ir far grester measure than
hat estimated hy other rosds Sc far. The
advance would Increase the road s income
hT S5s7 aso
--e witness presented 2 table showing
shsT the general operating expenses IN 1916
we're r.7S 30 more than the same opera
tion would have oosr II i could have been
cone OF the scale ~ expense Of 1sTl. In
addition = cost. Re said. ssIl.5 more n
maintain way and structures IN 1893 than Il
DID ten years ago
one Of his tables contained an estimate
- what y would cost 70 reproduce the z.Zas
miles Of road operated prior 70 the acuui-
sE1rion 81 the Puget Sound division and
which then was capitalized at sZ2a 697 so.
F7is esttrnste was s2.3iSs sS. The present
capitalization of the road including the
Puget Sound branch. IS ss24 S1S23o, ne said