The Coalville times. [volume] (Coalville, Utah) 1894-1923, 1910-07-01
THE RELATION OF RAILROAD
RATES TO GENERAL
BUSINESS.

To the Business Man: No mat.
ter how Objectionable an advance In
freight rates may be 10 us personally.
Ne must recognize that an improve.
mont in general business " dependent
on n bcttorment of operating and
financial conditions Of the railroads
That the operating results are most
unsatisfactory Is readily seen by
the latest INTER STATE COMMERCE
COMMISSION reports. which show
that Tor the nine months ended April
LIST. 1910. eleven railroad systems. all
West and Norih Of q line drawn from
Chicago to ST. Louis. compared with
the same roads for the same period In
the previous year. had their gross
earnings Increased about $4,000. 600 90,
while their not earnings showed o dc.
crease OF s. 800 900 90 and Tor the
month Of March. ou the same compnri
son they show an Increase ~ $1,000
5000 In gross and decrease of
1896 GOO OU In net earnings
Attention is called 10 the fact that
the wage increases. tcKccpt q small
amount were not In force daring itla
period. and from now On huH' viii
greatly increase the operating cost
These same railroads h1d their take.
Increased over the previous year
&2.5Oo.OOO OO. or itgs aud have 10 ply
higher rates of interest On their loans
These roads covering the most pros.
porous part of the country may be- con.
sidcrcd representative of general rail
road conditions
During the past three years of poor
business. railroad expenditures Tor
maintenance were necessarily M the
lowest point. and In consequence their
motive power equipment and tracks
now demand greater proportion NJ
operating expense 40 provision has
been or T. being made for the growing
demands Of the country. aud as trans.
portatlon ~ the backbone NJ business.
its weakness or incfiiCicnCy cripplos
every other condition. because all prod.
ucis are valuable In the ratio with
which their Accessibility 10 the con.
Stunning market
u ia most important 10 the shipper
that railroads at ali times are fully
equipped TO take care Of in increase of
his business The first eight months ot
1907 demonstrated that the railroads
could not handle the busincHs then OF
ferod with any degree NJ satisfaction
The financial conditions since have not
permitted them TO even maintain their
then position II the then volume Of
business were to come back supple.
montod by the three years growth Of
the country In the interval. transports.
tlon would be paraly2cd. and what
would that cost the shipper compared
with q reasonable advance In freight
rates now? Such an advance would
provide the means for avoiding this
impending disaster The iron horse
needs TO be kept In good condition for
the same reason aA the living horse
used for transportation The team
ater knows that II his horse In not
well fhod, well groomed and well fed
and hiH harness aud wagon kept In
good repair. that all he will save on
such economy will be many times
wasted In the efficiency Of his trans.
portatiun, and also add great expense
To the shipper II IL oxsclly the same
with the railroads the shipper has u
right TO demand that transportation
be ample aud efficient. the success OF
his business and the development OF
the country are dependent ON IL.
The Investor; To DO this. the rail-.
road must show adequate returns to
maintain proper borrowing credit and
present promising source Of Invest.
ment TO procure the necessary funds
10 improve and develop the property
NJ needed. II IN neither the railroad
president nor the shipper that controls
the situation. II Is the Investor alone
who holds the key. without his un.
invested dollar the railroad cannot OK.
tend or improve. no matter how great
the needs OF the shipper or the country
may be
with all the increasing cost uf OPP
GRAFTON. supplemented by ever In.
creasinE ana hurdensomo Legislative
restrictions concerning their earnings
In face oi the fact that tho average
dividend rate on railroads was less
than 3h per cent for the past six
years. and the United states Supreme
Court In the case nf the Consolidated
Gas Company stated that % per cent
was a FAIR return on money invested
IN public utilities" with the average
freight rate In 1909 OF three quarters OF
a cent per ton per mile. the lowest In
nine years, the average passenger rate
per mile, one and ninc-tonths cents
thc lowest ever reached. IL II any won
der thai the Investor holds back aud
the llankcrs demand high interest
rates from the railroads. The railroads
need S2.oDO,OO0.O 100000 to put their lines
IN proper condition, ana to increase
their terminal facilities at all points
that are even now necessity. and
$1,000 10000 more for modern new
Incorrect Pnraseology