The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-09-22
BIG PAYROLLS
MAIN FACTOR
ONE REASON WHY NORTHWEST
ERN WANTS TO INCREASE
THE FREIGHT RATES.
HAS HANDSOME SURPLUS
But Vice President Gardner Tells
Commerce Commission the
Road Feels Entitled to
Raise Rates.

Chicago, Sept. ai.--The reprarKA
he financial returns of the caicago
md Northwestern railroad during tn
last ten years were brought out today
II the rate hearing by tie attorneys
'or the shippers who are fighting an
Increase of freight rates. The main
witness was w. A. Gardner, vice
president of the road. His testimony
was, in short, that the company
thought itself entitled to. raise freight
charges now, In spite or the fact tiat
IN the ten years It paid returns to It's
stockholders in direct dividends and
IN unappropriated surplus more than
the amount of capital stock
"The Northwestern line viii not go
nto bankruptcy neXs, year or the year
after, unless 1t now raises rates" be-
gan Garlpsf. touching Upon this sub
iect, hut do say that regulation by
the commission does not control the
commercial condition under which we
get money, and unless we soon may
get higher rates, we will. In future,
have to run out the red flag. We must
be allowed a satisfactory surplus
above operating expenses.
Would you still say you rlouli
naye a right to secure that yearly sur
plus II you knew your road had, In
ten years, paid ca $Sa, 100000 Of stock
dividends accounting to $sg,o00,0oo,
and had In addition an unapproprlated
mrpms. taken from the earnings. ol
$40 .00o,0eo .mora--an amount of net
return To stockholders Of more thar
tho capital stocH2" asked Attorney
Lyon
"Yes, wou.l AS said, consider
t is needed only from the standpoint
Of keeping - nn p / the he read .
Gardner also testified in relation
to labor pay Increases on general
maintenance.
He said this factor was chief ore
n establishing the probable Increase
n The cost for the coming year. that
II addition to the present controversy
With the enginemen, which mlght
mean an addition OF $4,000 900 to tpe
pay roll, tnere was $5,000,000 in add
tional pay roll tAat had not tonrs up
for possible revision.
"Will you explaia why Increased
labor conditions are so important.
We'll. the freight trainmen's wages
are most important. !aasmucA as
while only 81 per cent Of last year
tonnage was freight, rs per cent OF
the salary paid traianlen was tp thost
who handled freight,
I'm addition to the increases due
to short hour laws, we now have tc
employ extra men to do the work or
other employees used to do on their
own time For instance, 1t now cost
us $4,000 year for men to wipe of
engines, which formerly was done hy
anginemen; we have TO nire men to
put out and care for switch ligi,,s be-
,ause baggagemen now regard their
work as too dignified TO engage them
selves, and so 1t goes. And when
you consider that our pay roll is s3.'
900, COO a month. you can see how that
influences the cost of operation
II Is said that the charge that the
western roads have violated the lam
Gus injunction secured by the govern
ment in the trans-Missouri rate case
would be made by the Illinois dele
gates TO the freight rate conference
called by Governor Stubbs, Of Kansas
to meet at Topeka tomorrow Th'
conference will be urged to adop
resolutions calling for the prosecution
Of the alleged offenders for contemp
of court The injunction meant K
prevent the trans-Missouri freight as
sociatlon from eonspiring to fix rates