The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-08-31
SANTA FE
PRESIDENT
HAS CROUCH.
HINTS DARKLY OF PAR.
LOUS TIMES AHEAD
FOR COUNTRY
BOOST IN FREIGHT RATES
MIGHT SAVE SITUATION
Wants the Shipper 10 Pay for
Improvements Made
By Railroad

Chicago, Aug. 3l-Presideni c. p.
Ripley of tae Santa Fe system, on
the witness stand before Special lsX-
aminer G. VI. Brown Of the interstate
commerce commission, in support of
the contention OF tae railroads chat
higher rates are just and right. de
clared that wages paid by the rail-
roads have increased largely making
operating expenses greater burden.
He also declared that the outlook fol
next year is not good and that gener-
al conditions are so considered in the
Judgment of merchants and those IA
niliar with tie trend OF events. Furtb
er in his testimony Mr.. Ripley said
that ae thought it not improbable that
next year the earnings of the road
may shrink so that they mya not
more than pay the dividends.
The pessmistic view of the presi-
dent of the road came in the dlrec,
examination BY Attorney Frank Lyon,
counsel for the interstate commerce
commission, and followed questions
concerning what proportion of each
dollar earned by the road was return
Il to the public in the slape of wages
for labor and in operating expenses.
We are likely to see a decrease In
our gross earnings in the next twelve
months" said Mr.. Ripley.
What do you attribute that to?'
lsked Mr. Lyon.
Il attribute it to general conditions
If business" was the reply.
Are the general conditions of busi-
ness badp
Il woaid not say they are bad;s
they .arefnot as good as they were a
year ago, said Mr. Ripley.
What Is the trouble, have YOU any
idca?"
wei, am not a professor of po-
litieal economy. and do moi care
70 venture an opinion, was the re
sponse from Mr. Ripley.
i do not care to venture an opinion
as to what the trouble is, but think
tie concensns among the merchants
and others in This room is that the
conditions are not as good as they
were year ago, and do not expect
10 see as large earnings as we saw
last year"
ltevcrting 10 the subject later in the
hearing under cross examination by
Attorney Clifford Thorne, represent
ing livestock shipners in Iowa. Mr.
Ripley admitted that for ten years
The Santa Zee had paid its dividends.
Il have nothing 10 prove that they
will not be paid next year. ca that we
shall default on our interests" said
the nresident of the road but this
last year which was the largest gross
earnings we ever had. kent up the
property and earned 81 per cent on
our capital stock, but | can see eN-
.pcnses ahead of me for this coming
year enough to warrant me in tAe bs
lief that we will not any more ihan
earn our dividends; we might nOssi-
bis earn our 6 per cent dividends. IN
other words 4 think IL Is not improS
able that our earnings may sarink
10 a point where we will not earn
more than our dividends
Ripley explained that by increased
expenditures. he referred to improve
nents. and Mr.. Thorne commented;
80 reduced to its ultimate analysis
YOU think YOU are entitled to II
creased rates in order to build these
facilities. is that correctg
"ln order to keep up with the times
and do what the public expects OF
MS" replied Mr.. Ripley
And make improvements above
what you had last year? asked the
cross examiner.
Certainly, any railroad that fails
to do that is bound for the slide,
was the reply.
Mr.. Thorne: "You think that ought
10 he paid out of the operating ex-
penses?'
Mr.. Ripley: Most certainly ! do.
WANTED--Dressm TO do at 20 |
South First St. over City Shoeing !