The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-05
Conference Will Be Held Al
White House on the
Rate Situation
VIEWS OF RAILROAD MEN
ARE VERY PESS|M|ST|C
Central Says Tint the Cost of
Running Railroads Has In
creased Very Heavily
BY PRESTON c. ADAMS

| New York, June 4.-(SpeciaL)-Two con-
ferences that will be held next week are
likely to go a long way toward clearing
the clouds are now hang over the rail-
road rate situation. President Taft will
give hearing on Monday in Washington
to large delegation of railroad pres
idents who feel aggrieved over the in
junction suit recently brought by Attor-
ney General Wickersham to prevent an
Increase in freight rates by the Western
Traffic association AS the result prin-
cipally of the efforts of George W. Perk-
ms, the western railroad presidents will
hold a conference on Tuesday
Another meeting that will have a strong
bearing the situation will be held at
the Hotel Belmont in this city on Tues
day, at which representatives of the rail-
way business associations from 10 states
will discuss the rate question. The as
ISOLATION is the National Organization of
Manufacturers Of Railroad Material,
Equipment and Supplies. Speaking of the
purpose of the meeting. George A. Post,
president of the association, said:
1T is probably that a strong appeal will
be made TO the public and to federal offi-
cials to consider. In broad way the
necessities of the railroad, and to avoid
the calamitous blunder of technical VIC
tories in litigation which may result In
widespread industrial and commercial dis
tress.
.'All that the Railway Business assoca-
tion will ask is fair consideration by the
duly constituted tribunal of all freight
rates proposed. and lawful adjudication of
all the facts that have been presented.
Freight rates cannot be fixed by YELL
1t is business proposition"
Since the action Of the government in
enjoining the railways in rates. a number
of railroad presidents have outlined the
position of the roads very clearly. and
J their utterances afford good line on the
, argument they, will lay before Mr.. Taft
: Monday.
W. G. Browns Views
W. c. Brown of the New York Central
system said
"The railways of the United States are
receiving practically the same money re-
turn for transportation services today
that they received 10 years ago. Freight
and passenger revenues are practically
the only commodity prices in which there
has been no advance from the general
level which prevailed decade ago
There can be no question as to
the fact of the higher cost Of rail-
way labor and supplies. In the early
part of 1907 the increase in the wages
of employees amounted to more than
500, 600. 900 a year and. notwithstand-
ing that there was no decrease or
reduction in the rates of prices Of
railway labor during the period of de-
preston, there has been added DUR
ing the past 30 days, as the result
of arbitration. further increase In
wages of approximately &125.0Oo.000
per year.
, I'm addition to this. state and fed
eral laws limiting the hours of SER
vice, and the full train crew laws
in most of the states has added dur
ing the past four years to the cost
of operating the railroads at least 320.-
| 600, 900 per year
'"rhe rise in the cost of materials
since 1897. when the present upward
movement of commodity prices may be
said to date it's decisive beginning has
been even greater than the advance in
wages. In 1907 there was 32.73 per
cent of the railway stock that paid
no dividends, and the average rate on
67.27 per cent that paid dividends was
6.2S per cent. The situation has mucn
improved but 1t is not satisfactory"
James J. HnPs Statement
James j. Hill. chairman of the Great
Northern and Northern Pacific systems:
This country has lived through some
stupid things. l hope it can live tn rough
this. The administration cannot take
away the railroads rights-we will go
higher" =.
b. F. Yoakum chairman of the board
of the st. Louis and Sran Francisco:,
This effort on the part of the dif-
ferent political factions to popularize
themselves with the mass will reach u
turning point, and that turning point
is going to be in the direction of les
sening the middle mems profits, bring
ing the producer and the consumer
closer In touch. What the country
wants is stability in business, which
can only come through stability of les-
islation."
f. P. Ripley, presi ient of the Santa
Fe system:
I'VE have stopped work on our double
tracking of Atchlson from Chicago to the
coast. We have cut down the working
hours in some of our shops to half-time,
and, II necessary. we WIN lay of many Of
our men. II is absolutely necessary that
we in some way meet the increased cost
of maintenance ana the decreased net
earnings"
Vice President Park of the Illinois Cen
; trail:
Eve have a number of big improve
ments in view which are deferring
until we are able to raise our rates, and
have larger income
About 1900 Men Laid on
President Nudge of the Rock Island:
I'VE have laid Off about 1900 men In the
last few months to make up for our drop
in earnings. Unless the government per-
mts US to increase our freight rates and
in that way increase our earnings, We
must meet the situation by cutting down
forces in the shops, shortening hours and
cancelling orders for equipment"
e President Darius Miller OF the Burling-
ton:
The articles and bylaws of our trunk
line association were framed with a view
, to conform with the provisions OF the
Sherman antitrust act. and If they don't
do .. all of our attorneys are poor law
yers We are greatly surprised at this
: attack. because of the fact that the past
3 administration, as we'll an the present, has
I publicly admitted that freight rates can-
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