The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-08-31
President E. H. Ripley of the
Santa Fe Supports the Con-
tention of the Railroads for
Increases in Freight Rates.
EARNINGS OF THE ROADS
ARE LIKELY TO SHRINK
Wages Paid Considerably
Higher and Operating Ex-
penSeS a Greater Burden
Consequently Money Needed
ROCK ISLAND COMES NEXT

CHICAGO, Aug 3O.-President r. p
1 Ripley, Of the Santa Fe System, On
the witness stand today before
Special Examiner G. NJ. Brown of the
Interstate commerce commission, in
support of the contention of the RAN
roads that higher rates are just and
right declared that wages paid by the
railroads have increased largely, max
ing operating expenses a greater bur
den.
He also declared that the outlook for
next year is not good and that general
conditions are so considered in the
Judgment of merchants and those IA
miliar with the trend of events. MI
Ripley said he thought il not improb-
a BILE that next year the earnings of the
road may shrink so that they would
no more than pay the dividends.
The pessimistic views of the presi-
dent of the road came in the direct eX-
animation by Attorney Frank Lyon,
counsel for the interstate commerce
commission, and followed questions
dollar earned by the road was returned
to the public in the shape of wages for
la Dor and in operating expenses.
Decreased Gross Earnings.
we are likely 10 see d decrease N
our gross earnings in the next twelve
months" said Mr.. Ripley.
What do you attribute that top
asked Mr.. Lyon.
4 attribute it TO general conditions
of business" was the reply.
Are the general conditions of BUSH
ness bad?'
4 would not say that they are bad;
they are not as good as they were a
year ago" said Mr.. Ripley.
What is the trouble? Have you any
idea?"
Well. / am not a professor of polit-
zeal economy and 1 do not care to ven
ture an opinion" was the response.
4 do not care TO venture an opinion
as TO what the trouble is, but / think
the consensus among the merchants and
others in this room is that the condl-
lions are not as good as they were a
year ago, and / do not expect to see as
large earnings as we saw last year"
Reverting TO the subject later in the
hearing under cross examination by
Attorney Clifford ThOrne. representing
livestock shippers in Iowa. Mr.. Ripley
admitted that for ten years the Santa
Fe had paid dividends.
This Years Earnings.
Il have nothing To prove that they
will not be paid next year or that we
shall default on our interest" said the
president of the road. This last year
which was the largest in gross earn
ings We ever had. we kept up the prop
erty and earned IS per cent on our
capital stock. but / can see expenses
ahead of me for this coming year
enough TO warrant me in the belief
that we will not any more than earn
our dividends; We might possibly earn
our 6 per cent dividends. In other
words, / think il is not improbable that
our earnings may shrink to a point
where we will not earn any more than
our dividends"
Ripley explained that by increasing
expenses he referred 10 improvements
and Mr.. ThOrne commented:
so. reduced TO its ultimate analysis
you think you are entitled TO increased
rates in order to build up these facili-
ties is that cOrrect?"
In order To keep up with the times
and do what the public expects or us
replied Mr. Ripley.
And make improvements above
what you did last year," asked the
cross -eXaminer
Certainly. any railroad that fails to
do that is bound for the slide"
Mr.. ThOrne-YOu think that ought 10
be paid out of the operating expenses
Mr.. RiDley-MOst certainly ] do
Special Examiner Brown shut Of
questions touching the bond issue FOR
CONTINUED ON Page TwOD