The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-11-15
RAILROAD NEWS.
What Next in Railway Freight
Rate Hearing Fight!
That Is Question Which Is
BOthering Wall Street.
RAILWAY SIDE ONLY.
But Reports Have Given Little
Idea of Result.
Other Items of General Interest
in Traffic World.

New York, November 15-Next Mon
day, the freight rate hearing will be
resumed at Washington, with witnesses
representing the side of the shippers
and it will then be possible to de-
termine whether or not Wall street has
been justified in the more or less pre-
valent opinion that the railroads have
already won their case. At the open
ing of the hearing. which began IN
New York on September Z, the rail-
roads submitted evidence to show that
the proposed increase in rates would
add $27. 031, 445 to gross revenue for the
current fiscal year., whereas the IN
creases granted in wages would add
$34, 756, 579 to operating expenses, leaV-
ing a net deficit of 81, ,075. On Tues
day of this. week the engineers OF 81
railroads announced that a vote was
being taken to call a strike unless their
wages were increased per cent. All
this will add interest to the shippers
testimony.
So far, only the railroad side of the
case has been heard. In addition to
this the press reports of last months
Washington hearing were so meager
and incomplete as often to give a
wholly erroneous idea Of what actually
occurred. It is possible, however, from
the official report of the testimony and
cross-examination of the railroad Of
ficials to form some idea Of the actual
drift of evidence The view of the rail-
way presidents who testified was thus
tersely summed up by Daniel Willard
of the Baltimore & Ohio, in the follow
ing coIloquy with counsel for his COM
pany:
Mr. Bond: So that to preserve the
conditions of 1910, you will have to DO
a great deal more than to merely IN
crease your gross earnings by the use
of the same facilities that you had in
1910? You will have to make large ex-
inRrp9 faculties
get the business which you can get?
Mr.. Willard: We are practically do
inc all the business we can do at the
present time with existing facilities;
unless we handle more business; and
we have got to have more facilities in
order to handle more business.
Mr.. Bond: So that you see no way
to meet the problem which confronts
the Baltimore & Ohio Railroad com
pany except by some increase in rates?'
Mr. Willard: Unfortunately, 1 am
unable to see any way in which we can
maintain the policy we have been main
! tanning. and which, in my opinion,
ought to be maintained, unless this in
| crease in rates is granted"
Each of the railway presidents ar
gued that to raise the necessary capt.
| tai 1t was necessary to maintain their
credit by paying not less than present
| dividends, and besides. applying to i'm
DrOV6T0S1LS surplus 6dIllAI1SS ~ IIlS ca
! tent of not less than half of the amount
paid out in dividends. That policy could
not be followed out, it was declared IN
each instance, unless freight rates were
| advanced.
In crosse examining the witnesses
counsel for the shippers and various
! members of the commission asked ques-
lions calculated to bring forth infor-
| nation on three points: First, whether
the dividend increases authorized by
| the New York Central, the Baltimore
& Ohio the Atchison. and a score Of
other companies since the question Of
increased freight rates first arose II
1908, were fixed in the light Of thost
other requirements; second, whether i
is not possible to increase net income
to the desired point by developing op-
Grating efficiency; third, whether il
would not be wise, before increasing
freight rates, to go through an expert
mental period to determine if the nat
uraI increase in business would no
offset the increased cost of labor, "a
was the case after the increase il
! wages in 1902 and 1906.