The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-06-05
"This Country Has Lived
Through Some Stupid
Things" Says Hill.
SANTA FE ROUTE STOPS
WORK ON BETTERMENTS
Strong Argument Advanced by
President Brown in Matter
of Rate Case.
BY PRESTON G. ADAMS.


BY Leased Wire TO The Tribune.
NEW YORK, June 1.-Two confer
cnces which will be held next week
are likely to go long way toward
clearing the clouds which now hang
over the railroad rate situation. Presi-
dent Taft will give hearing On Mon
day in Washington to large delega-
ton of railroad presidents who feel
aggrieved over the Injunction suit re-
Gently brought by Attorney General
Wickersham to prevent an increase IN
freight rates by the Western Traffic
association. AS the result principally
of the efforts Of George W. Perkins,
hold a conference on Tuesday. Anoth-
er meeting which will have g. strong
bearing on the situation will be held
at the Hotel Belmont in this city on
Tuesday at which time representatives
OF the railroad business association from
ten states will discuss the rate legisla-
tion. The association Is national or,
ganization of manufacturers Of railroad
materials, equipment and supplies.
Speaking of the purposes of the meet
ing, George A. Post, president of tho
association, said:
'fIt is probable that a strong appeal
will be made to the public and to fed
eral officials TO consider In broad way
the necessities Of the railroads and TO
avoid the calamitous blunder of tech
nical victories in legislation which may
result in widespread industrial distress
E'All the Railroad Business assocla-
ton will ask is fair consideration by
the duly constituted tribunal of all
freight rates proposed and lawful ad-
Indication after all the facts have been
presented. Freight rates were not hxed
by 'yell'; it's a business proposl-
tion.'
Presidents Give Their Views.
Since the action of the government
in enioining the raise number or rail-
road presidents have outlined the posi-
ton of the roads very clearly and their
utterances afford a good line on the
argument they will lay before Mr. Talt
on Monday.
w. c. Brown. president of the New
York Central. says: "The railways oil
the United States are receiving practi-
cally The same money return for trans
portation today that they received ten
years ago. Freight and passenger rev
enues are practically the only commod-
tiles in which prices have not been ad-
vanced since tho general level winch
prevailed decade ago. There can be
no question as TO the fact of the higher
the early part Of 1907 the increases IN
the wages of employees amounted to
more than million dollars per year,
and notwithstanding that there was no
decrease or reduction IN the rates OF
the pay of railway labor during the pc,
riod of depression, there has been added
during the past ninety days as result
Of arbitration a further increase IN
wages of approximately $125, 900.
'EIn addition to this, state and fed
eral laws limiting the hours of service
and the full train crew laws IN most
of the states has added. during the pasp
few years, to the cost of operating
railroads at least $20,000,0o0 per year.
Materials Have Advanced.
"The rise in the cost of material
since 1897, when the present upward
movement of commodities prlces began,
may be said TO date its decisive be-
ginning, has apparently been even
greater than the advance IN wages.
"Iu 1907 there was 1913 per cent
of the railway stock which paid no diyi-
dend and the average rate on the
67,27 per cent which paid dividends }
was 623 per cent. The situation has
much improved. but 1t was not satis-
faetory. 1t will be remembered that
prosperity.
t'The panic befell in, the closing
months of 1907, necessitating industrial
and commercial readjustment wh1ch
forebade further immediate advance IN
rates The revenues of the railroads
rapidly diminished, but there was LITTLE
il any decrease in the cost OF supplies,
and none in the rate OF wages paid I'd
their employees.
"In the summer of 1905 it was agai n
sought to advance rates, and again
there was overwhelming opposition
'sThe railroad companies needed
these protests, and, instead OF raising
rates TO meet this emergency, resorted
to that kind of economy which wears
away bone and sinew and impalrs
efficiency. BY tho discharge OF EN-
ployees, by allowing tracks and bulld,
ings TO suffer, by not making needed
repairs TO cars and locomotives, operat-
ing expenses were greatly reduced
This Year One of Prosperity.
.'This year 1910 has brought a
return of prosperity; The business VI
manufacturers, merchants and farmers
bids fair TO exceed the year of l9o', III
cannot now be urged, as 1T was Two
wears ago, that the railroads are NOT
justified in increasing rates because on
an undue burden which will be placed
upon their patrons. On the contrary,
every condition which made an lncrease
in rates necessary in l90e remain, anu,
in addition thereto, the TACT that tue
railroads have arbitration forced upon
them by law, as well as the duty when
rests upon them TO aVold conlllct
with labor. to add approximately SEQ
600 600 annually to their payroils'
James j. Hill, chairman OF the r'eae
Northern and the Northern
SAYS: "This country has hVed tf
some stupid things. | hope II G