Arizona republican., 1910-06-01
PHOENIX, ARIz. JUNE l. 1910.
The Government Attacks the Rates.


 The proposed increase of freight rates on the lines in western terri tory having been scheduled to go into effect today, Monday-within forty eight hours of the scheduled date was rather late day, as Attorney General Wickersham suggested, for the western shippers to apply to the government for an injunction against the new rate. It taxes some thought, and some time. to prepare properly a case of such importance ss this.
 However, short as the time was, the attorney general. after a confer ence with President Taft, decided to apply to the courts for an injunction against the roads To restrain them from putting the new rates into effect, and the suit will be filed at Chicago this morning.
 If the government can obtain a temporary injunction covering suf-
  the shippers effectively, it will not be difficult to make a strong showing against the proposed increases.
 The proposed rates, If we include all the increases of. which notice has been given to the interstate commerce commission, will, according to railway estimates, increase the carrying charges by one hundred million dol lars annually While this increase would nominally fall on the shippers of the country, the hundred millions extra would be paid ultimately by the consumers-the people generally. For this reason it is a certainty that popular sympathy will be with the government in it's injunction suit.
 As in all controverted questions, there are of course two sides to the present controversy. The railway managers claim that d encouragement of rates is absolutely necessary in consequence of changed economic con- ditions. During the last few months the wages of railway employees have been increased, the advances ranging from 6 to F per cent 1t Is figured that this increase will entail an ad- ditional expenditure by the railroads of one hundred million dollars annu- ally, which is approximately the total increase of freight charges proposed. In addition to the wage increases of this year. other increases made within the past four years amounted to about 17 per cent. The railway managers also claim that while they have been receiving about the same compensa- ton as they did ten years ago, ma terials have increased in cost in that time from 20 to 116 per cent.
 While generally conceding these claims of the railway managers, the shippers point out that they are be- side the point-that although the rail- way companies do find it enormously more expensive to operate their lines now than they did decade ago, the greatly increased volume of traffic brings them a far greater net income than ever before. At a great mass meeting of shippers held at Chicago two weeks ago, resolutions were adopted setting forth that
 Analysis of the statistics filed by the railroads and compiled by the in- terstate commerce commission, not | such increased cost of operation, indicates the net income | per mile of road for 1907 has in | creased 345 per cent over 1S97."
 The resolutions also pointed out that | the principal trunk lines show a sub stantial increase in net operating in come for the first seven months of | the fiscal year ending June 30. 1910. over corresponding period of 1909 and 1907. These conclusions are SUD- ported by figures prepared by the Chicago Tribune as to the net income per mile of road for the railroads in the country during recent months. Compared with the two preceding years it shows these changes:
 1907. 1908 1909.