Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1910-11-11
POVERTY PLEA IS
BURLINGTON TALK
AT RATE HEARING
Denver and Spokane Rulings,
It Is Declared, Will Cost the
System About
$500, 900.

Chicago, Nov. 2.-Rate decisions at
Denver, Spokane and other western
points will cost the Chicago, Burlington
& Quincy railroad $500, 900.
The old rebating system reduced the
freight revenue Of the Burlington from
three to five per cent.
The Burlington is not in as good o
condition today TO accumulate a sur
plus as it was 10 years ago.
The foregoing were among the state
iIirnts made at the rate nearing today
by Claude G. Burnham, vice president
of the Burlington, who was the first
witness. Attorney T. j. Norton, who
represents the railways as a whole al
the hearing, stated that he had only
one more witness to introduce.
On the subject Of western rate de-
+cisi0ns, Mr.. Burnham said:
The decisions have not been put
into effect as yet, but unless they are
materially modified they will conserv-
satively estimated, cause the Burlington
a loss of $500, 900 annually"
Effect of Relating.
Attorney Dawes, OF the Burlington,
asked what effect on revenues rebatina
east of the Missouri had before the law
made the practice illegal.
Rebates were given almost exclu-
ssiyely on high class freight" replied the
witness. THE result was a rate that
was much lower than was fair to the
railroads. But at no time did rebates
cause more than a three to five per
cent decrease in the revenue of the
Burlington"
You have mentioned" said Attorney
Lyon, of the commission, that the pro-
posed increases would give the Burling-
ron road ahng1f Sd00 0l0 For what mr.
pose do you want that money!"
THE Burlington needs $400,0 900 and
more to maintain the efficiency OF the
property as a transportation machine"
DC you regard the Burlington as an
efficient transportation machine at
present." pursued Mr.. Lyon.
a compared with other roads, yes"
Can't Save Up Surplus.
When Mr.. Lyon inquired if witness
considered the Burlington to be In q
worse financial condition that it was
in 1900 the latter hesitated and then
answered slowly:
1T is not in as good a condition to
accumulate a surplus"
Mr., Lyon made q comparison Of the
dividends paid in 1900 and 1910, and of
earnings, and asked If witness still
maintained that the road was in a
worse condition with regard to a sur
E1uS lASLh / "dS ~ SCa1S dSOs
Condition have changed" replied the
witness. "They have changed in the
last six months. There are greater de-
mands on u earnings, particularly in
the matter Of wages"
Attorney James, representing the
shippers, expressed a number of ques-
tions concerning meeting Of the West
ern Trunk Line association. He was
interrupted by Attorney Dawes, OF the
Burlington, who declared that If Mr.
James was attempting to lay the
basis for q suit in equity the witness
should not answer.
Mr.. James disclaimed any such in
tention ans was allowed to ask If al
the meeting any rate was referred 70
by any road.
II don't know" was the answer.
Wasn't one OF the considerations in
advancing rates the selling price Of the
commodities affected?" Mr.. James
asked.
Yes"
Witness explained that the selling
price of furniture as an instance, fig
ured in determining to increase the
rate On furniture between Chicago and
the Twin cities.
Did you cali in the shippers with
regard to this rate?" inquired Mr..
James.
mo. Our experience has been that
if we did there would be no increase.
We have 300 men who are constantly
employed in reporting on the profits
made by the manufacturers and ship
pers on all lines Of goods"
Asked how increased revenues would
be used with respect to improving
terminals, Mr.. Burnham said that, for
instance, his road would expend $780,
900 in building a teaming track from
the heart OF the city of Quincy, ILL.,,
ITO the roads terminal at that city.
.&"And IL the increase Is not granted ?"
h / doubt that II can be built"