The Spanish Fork press. [volume] (Spanish Fork, Utah) 1902-current, 1910-06-30
THE RELATION OF RAILROAD
RATES TO GENERAL
BUSINESS.


To the Business Man: No mat
ter how Objectionable an advance In
freight rates may be to us personally. |
we must recognize that an improve |
ment in general business Is dependent |
on betterment Of operating and
financial conditions of the railroads. |
That the operating results are most
unsatisfactory is readily seen by
the latest INTERSTATE COMMERCE.
COMMISSION reports, which show
that for the nine months ended April
LIST, 1910, eleven railroad systems. all
West and North of a 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 $50, 900, 100000.
while their net earnings showed de-
crease of s3,500,000.00, and for the
month of March, on the same compari'
son, they show an increase Of $1,000
10000 in gross and decrease OF
$685., 100000 in net earnings,
Attention ia called to the fact that
the wage increases. Except small
amount,) were not In force during this
period, and from now on these will
greatly increase the operating cost.
These same railroads had their taxes
increased over the previous year
| S2,500, 900 90, or 1875 and have to pay
higher rates of interest on their loans.
These roads covering the most pros.
porous part Of the country may be con.
sidered representative of general rail-
road conditions.
During the past three years OF poor
business, railroad expenditures for
maintenance were necessarily at the
lowest point and in consequence their
motive power equipment and tracks
now demand a greater proportion OF
operating expense. No provision has
been or Is being made for the growing
demands of the country, and as trans
portation Is the backbone of business,
It's weakness or inefficiency cripples
every other condition; because all prod.
ucts are valuable In the ratio with
which their accessibility to the con
Stunning market.
1t Is most important to the shipper
that railroads at all times are fully
, equipped to take care of an increase oil
his business. The first eight months Of
1907 demonstrated that the railroad:
could not handle the business then of
|, fered with any degree of satisfaction
The financial conditions since have no
permitted them to even maintain thei
, then position. If the then volume o
\ business we're to come back supple
a mented by the three years growth o
n the country in the interval, transports
ton would be paralyzed; and wha
A would that cost the shipper compares
with a reasonable advance In freigh
rates now? Such an advance woul
!, provide the means for avoiding thi
impending disaster. The iron hors
needs to be kept in good condition fC
the same reason as the living hors
= used for transportation. The team
- ster knows that II his horse Is nc
we'll shod, we'll groomed and we'll fet
;, and his harness and wagon kept
y good repair, that all he will save o
= such economy will be many time
:. wasted In the efficiency OF his tram
:. portation, and also add great expens
>. to the shipper. 1t is exNctly the saE'
- with the railroads.: the shipper has
right to demand that transportatio
., be ample and efficient; the success I
- his business and the development
:. the country are dependent on it.
,n The Investor: To do this, the RAJ
a, road must show adequate returns
a maintain proper borrowing credit ar
I. present promising source OF inves
an ment to procure the necessary fun'
~, to improve and develop the proper
IA as needed II is neither the railroi
ho president nor the shipper that contro
"a the situation; 1t is the investor alol
nd who holds the key; without his u
cy invested dollar the railroad cannot G
a tend or improve, no matter how gre
ne the needs of the shipper or the count
er may be.
nd With all the increasing cost OF {
Grafton, supplemented by ever
IN creasing and burdensome legislati
te restrictions concerning their earning
wa in face of the fact that the avera
,er dividend rate on railroads was lie
than 3h per cent for the past {
.,
nc Court in the case of the Consolidat
a Gas Company stated that IS per &c
was a fair return on money invest
Ing In public utilities" with the avera
gh. freight rate In 1909 of three-quarters
its cent per ton per mile, the lowest
ley nine years, the average passenger II
No per mile, one and nine-tenths Ger
all the lowest ever reached. Is 1t any W
! der that the investor holds back q
all the Bankers demand high inter
lad rates from the railroads? The railroi
o need 81, OOO, 900. 100000 to put their Iii
ire in proper condition, and to incre
ia their terminal facilities at all poi
ion that are even now necessity, I
" 81, 900, 900 100000 more for modern
W. Incorrect Phraseology.
Speaking of the comet as "ce