Daily press. [volume] (Newport News, Va.) 1896-current, 1910-09-21
ASKED ABOUT COVERING
UP EARNINGS Of ROAD
After Giving What He Considers Prop
err Charges for Freight Transporta-
ton. Attorney Fires Question at
Railroad Man Which He Fails 10
Answer.

Answer.


ed manipulation of railroads in
come to cover up earnings and 10
TO today by attorneys for the Western
shippers Ct officers OF the Illinois
Central Railroad before the Interstate
Commerce Commission i'm the rate
hearing now in progress. Opinions
on the propriety OF disposition oil
earnings were given by Vice Prcsi-
dent and General Manager W. l..
Parks.
Mr. Parks had told the commission
he thought proper rate to be chars-
ed for freight transportation was one
which rendered a fair return for ser
vice 20 the shipper, and which, after
paying a reasonable dividend on the
capital stock. paid fixed charges and
operating and maintenance expenses
and would also give the company
yearly surplus of about $1,000, 900 TO
make the investment attractive to the
people with money and to give the
company a credit
Where Surplus Goes.
And what would you do with this
surplus-just hold it," inquired At
tOrney John II. Atwood. of Kansas
City. Mo. representing the general
shippers committee.
NO" was the. reply. 81 would use
it for lettering the road. For in
stance. would devote part of it to
new depots. etc"
But" asked Mr.. Atwood. when
that depot was built. you would con-
slider il part Of the actual property
of the company and a proper subject
for additional capitalization wouldn't
YOU"
"Of course" was the answer
Then when you later had capitulat-
ed, you would say YOU ought to be
entitle to a reasonable dividend upon
that capitalization
Yes sir"
Fails to Answer Question.
Then. the simple fact is you think
you ought to be entitled to charge
shippers enough to bring in sufficient
earnings that you can devote part
to new capitalization and then get
big return on il in the shape Cf divi-
dends. do yol? Is that your idea OF
what constitutes fair tariff for the
shipper"
The witness did not answer.
Manager Parks introduced a new
term in railroad nOmenclature-"rai
road intuition" He had been asked
by Commissioner Clements on what
he based his opinion that the present
physical valuation of the road was
far in excess of its 2s5, 100000 capt
talization.
Why I haven't any exact data by
which to determine the physical vaiua-
ton said Manager Parks. Il depend
upon what might call railroad intui-
tion-yes. railroad intuition You see
4 man can do nothing for 80 years
but ride over railroads. compare prop
ertv values and buy new lines. with
out gaining an intuitive valve appre-
cia;icn. 7 could not name any definite
figure. bu; il is much higher than the
capitalization"
chief Engineer Baldwin commented
on he effect OF wage Increase on
labor. He said:
In ten years We have raised Ger
tain workmen's pay - cents a day
and as a result We are getting less re-
turn for our money. This Is particu-
iariy true with the negro. The more
money he ge's the less efficient he IS
from our standpoint. u j. safe rule
10 say that increased wages means
less labor efficiency.
The Illinois Central announced al
the close Of the days session that
Il had PIT in !is case. Il Wis unce'-
stood that the Chicago. Miiwarkee x
81. Paul viii appear before the commits
SIGN tomorrow.