The Birmingham age-herald., 1910-09-02
Rock Island Official TcSti- flies In Rate Hsaring
cqN!l CONFUSED l! BY STATISTICS
for an Early Adjournment in order to Study the Very
 Intricate Figures

Chicago, September 1.-Testimony rela- tive to operating cost and revenue of the Rock Island Railway company occupied the attention of the examiners today in the hearing of rate disputes between the railroads who seek an increased rate on certain commodities and shippers who op- pose the advance.
 Vice President F.. o. Melcher of the Rock Island occupied the stand through out the morning and several clashes be- tween the witness and counsel for the shippers occurred. The afternoon session
 was largely taken up with statistics relat- ing to the financial condition of the road and the cost of operation. The statistics
 were introduced by Frank Nay, comp troller of the road.
 The mass of statistics was too great for the representatives of the shippers to un- dertake cross-examination or for the wit
 ness to examine the figures closely, and
 the hearing was adjourned earlier than
 usual to give them time to prepare their
 questions.
 The cross-examination of Comptrolle- Nay will begin tomorrow morning at
 o'clock when the hearing is resumed. Vice President Melcher said that the estimate of wage increases to which he testified yesterday was substantially cor rect From 1906 to 1910 he said the in- crease was 8, ,451 800, as based on an es- innate of the increase granted organized | labor This does not include such ad- vanees as have been made to the cler- ical force.
 | The Improvements of roadbed, the wit | ness declared, were demanded by the public and constituted serious item oi expense. He cited a report of the board of railroad commissioners of Iowa, "tha'
 not enough of money is set apart bs
 railroads for improving roadbed.' l Replacing old rails with new, MT
 Melcher declared, constituted another heavy expense.
 When the Rock Island replaces an S0- popnd rail with one of loo pounds" ht
 said, "a charge of s1134 per mile is put | against the company account of the road
 When that 1O0-pound rail is worn out and
 the charge of renewal of s210O mile goes
 into the operating account
 | The ballast for the road bed and re. placing bridges and rails costs more now
 than ever before, was stated. | Mir Melcher placed the total value oi
 the Rock Island at $4o4,000,00O. 'Oi | course" he explained, 'his Is an esti
 mate. It would be exceedingly difficult
 to say what it would cost to exactl,
 reproduce the road No one could say | for instance, just what 1t would cost to- | day to secure such an entrance into Chi cago as we now have"
 | Attorney F. B. James of Cincinnati | representing the shippers, cross-examined the witness as to the value of the road | The latter explained that his valuation | of $4O4, COX, 900 applied to the Chicago, Rocl
 Island and Pacific and not to the Rocl Island system. MT. James tried to make MT. Mecher admit that his estimate | was a guess, but the latter insisted Il | was more than a guess--it was his best judgment. based on valuation of $40, | 900 per mile. The lawyer then read re port given by the road to the interstate commerce commission, the total cost ifs
 ures being largely under Mir. Melchers
 estimate. Witness declared the repor
 did not affect his judgment. Thers
 was a heated clash between attorneys when MT. Melcher said he did not know
 the capitalization of the road. Mir James insisted that he did.
 "The witness has declared that he does not know the capitalization interposec Examiner Brown. FiF 1T think he does" returned Mir James Do you want to make him out 1iar?' | asked the court. a1-a No, but I want to know whet h, | knows" AT
 MT. Melcher declared q have onl, given the general cause which ~contri
 bute to the total I am not an account ant nor a f1nancier I am connected with the operating department, Yo'
 either want an accurate answer or yol
 are trying to discredit my testimoney. q don't want an accurate answer an'
 I am not trying to discredit your testi
 mony," rejined MT, James.
 Our accountant has the figures yo'
 want and is here to produce them,' sci'
 Mir. Milcher.