The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1910-10-28

RAIL FIGURES
Witness for Shippers Testi=
flies at Rate Hearing.
EXPENDITURES VERY HIGH

Advances in Operating and Mainte.
nance Accounts Declared to Be Un-
precedented Compared to Earnings.
Asserts That Valuation of Termi.
nails Are Fully Double the Actual
Cost of the Same
Chicago, Oct. 28.-The shippers who
oppose prospective freight rate ad-
vances attacked certain valuations
placed on their property by. railroad
witnesses when E. J. McVann, man.
ager of the traffic bureau OF the Oma-
ha Commercial club, took the stand be-
bore the interstate commerce COM
mission. Witness reduced the repro
duction valuation of $3,300,000 placed
on the Burlington roads terminal
property at Omaha by General Man
ager Ward. The assessed value wit
ness stated, is 1881, 205. 'This," con.
tinued Mr.. McVann, lis about Is per
cent less than the actual value, which
makes the latter about $1,00O,000. l
found the railroads in Omaha paid
about so per cent more than the actual
value of the land, so Mr.. Wards esti-
mate would have to be cut in two to
give the correct value.'
Continuing, witness declared similar
conditions obtain at St. Paul, Mime
apolis and Duluth. The roads at those
points, he said, have paid more than
the actual value for their terminal
lands. Mr. McVann centered his tes-
timony on the Burlington, the Santa
Fe, the Chicago and Northwestern and
the Chicago, Milwaukee and St. Paul
railroads, which, he said, were the
governing factors in the Western rail-
way affairs.
In examining the operating ex-
penses of these four roads," said the
Omaha traffic expert, Il found there
had been an unprecedented jump in
operating expenses in 1901 say 'un.
precedented' because none of the rail
road witnesses would say that the in
crease was abnormal"
Railroad Reports Analysed.
From examination of railroad re.
ports to the Interstate commerce COM
mission witness found the Santa Fe
maintenance account increased Is per
cent in 1910 over 1909 and it's trans
pOrtatiOn account advanced % per
cent in the same period. The main
tenance account of the Northwestern
road increased 2211a per cent and the
transportation account 21.b per cent in
1910, as compared with the preceding
year. The Burlington's maintenance
account increased 16.5 per cent and
the transportation account II per cent
Mr.. McVann said increased business
normally would show an increase in
operating expenses before an advance
in maintenance expenditures. He made
this statement in contrast to the fact
that the Santa Fe's maintenance &C.
count increased more than it's trans.
portation account in 1909-1O
THAT might be explained" he said,
"by the purchase of construction ma.
terial for future use.''
After discussing items of gross
profit, percentage of empty cars
hauled by the roads, and the increase
in the minimum carload weight, Mr..
McVann, the sole witness at the morn.
ing session, gave his opinion of the
proposed increased freight rates.
1T is my honest opinion" he said,
that the proposed increases in freight
rates will not increase the revenue
of the railroads but will decrease it by
it's effect on business in a stoppage of
the movement of goods"