The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-06-26
This the Biggest Business
Question to Be Settled in
Near Future.
PROPOSITION ONE THAT
IS DIFFICULT TO HANDLE
What Both Sides to the Con-
trOversy Have to Say
About Matter.
STOCKS
GRAIN
LIVESTOCK
BY PRESTON @. ADAMS.

BY PRESTON q. ADAMS.
BY Leased Wire to The Tribune.
NEW YORK, June 25.-Perhaps the
biggest business question to be settled in
the near future is the controversy be-
tween the railroads and shippers as to
what constitutes fair freight rates, the
settlement OF which has been temporarily
postponed by President Taft When the
Interstate commerce commission takes up
Lhis II question I'll H. WhiSh It probably viii be @
going to find 1t about as tough q propo-
sition as any aggregation or gentlemen
ever tackled. Railroad men point to the
fact that their expenses have very great
ly increased and they have a perfect right
10 Increase their income TO cover this
loss Shippers alleGe that the railroads
making money at present rates md
should not be permitted to advance rates.
So there you are, In this connection
some interesting figures have recently
been published.
Figures of the Chronicle.
According to the Chronicle, forty-eight
railroads report gross earnings for May
OF 500, 439, 49, an increase OF SS.U2Il,
or 1928 per cent, as compared with the
corresponding period year ago. While
the returns OF railroad gross earnings are
not conclusive as TO the prosperity of the
trade and business OF the country, they
indicate great activity Even as to the
roads themselves, the continued growth
In their gross revenue is an extremely
gratifying feature showing as it does
that new income is coming in TO offset,
in part at least, the great rise In cX-
penses-
Rights Given Stockholders.
Then B. B. Burgunder OF Baltimore.
In an article for the current number OF
the Annals of the American Academy OF
Political and Social Science shows that
Il the values OF the various rights"
which have been given TO stockholders
Of a selected list OF leading railroad and
industrial corporations be taken into con-
slderations they have received net re-
turn on their investments of from 8 to
S3 pei cent after allowing 5 per cent In
terest OH the original cost OF such rights.
In only two instances of the large cor
porations which have issued rights 10
their stockholders have the results been
Improbable 10 the latter. The share
holders OF the Cleveland, Cincinnati Chi
cago * ST, Louis or the Big Four, rail-
way have sustained an actual loss OF
about 3.i per cent per annum by taking
advantage OF the stock allotment made TO
them in 1905. while the Missouri Paoific
shareholders have received only about
of l per cent per annum on their In
restn1ent. These are exceptional in
stances.
AS to Stock Allotments.
The most remarkable examples of the
value OF the stock aotments and other
rights usually termed melons s"-re-
ce!ved by the owners OF various corpor-
Mr.. Burgunder shows that upon stock
bought In 1893. the day before the first
distribution OF rights by this company
had been taken up and paid for with
money borrowed at . per cent interest.
the net income the original cost would
now be SS.l3S per cent per annum. An
other striking Instance Is the Canadian
Pacific railway, whose shareholders on
first investment of 1901 have received
an annual net return Of 25.0S per cent.
The United Gas Improvement company
Is the most prominent among industrial
corporations for this sort OF extra distri-
button, and the net return on an origi-
nal investment In 1898, just before the
first rights were issued Is now 1865
per cent pei annum. All this is after
allowing interest at the rate OF per
cent for the cost of the various alot-
ments 10 date.
Facts About TRAFFIC.
Some interesting facts about passenger
traffic have been compiled by the rail-
roads in connection with the general ad
vance in passenger rates These show
that passenger traffic last year involved
% per cent of revenue of all railroads.
Requires i6,026 cars, increase OF 81 per
cent in ten years. Number Of passenger
miles increases l5o per cent in ten years.
Revenue per passenger mile decreases
lla per cent in same period, Passengers
are given faster trains. more expensive
cars: block signals. better track and bet
ter facilities, At present rate per pas
senger mile, net revenue is not sufficient
to pay interest on cost of equipment and
facilities. emitting track and general eX-
pense. Under 2-cent fare laws, passen-
ger receipts less in 1909 than in 1907
while service performed js per cent
greater Much passenger business con-
Quoted at less than cost.
1t is easy TO see that the members OF
the Interstate Commerce commission arc
going TO earn their salaries and to come
In for their full share of cursing in the
near future.
Settlers Department..
I'll
settlers ildustriai-a agricultural depart
ment and has rendered the chief posi-
ton in the organization to Prof, II. n.
cottrell. who recently resigned as dlrec-
tor OF farmers institute work in Colo
RADIO expecting to take UP the director
snip of the state experiment station. The
Rock Island has 1900 miles of line and
IN It's territory every agricultural prob
lem has TO be mot il covers not only
corn. but the winter and spring wheat
sections. as well as the cotton belt and
already has an immigration bureau. en-
ploying 5000 agents. Each family To-
Gated by them Is to come under the per-
sonal care OF the new AGRICULTURAL SOM
missioner. and must be converted through
practical results into a booster for the
particular section in which he locates.
Work Of Commissioner
The commissioner Will be expected lc
prganize a correspondence bureau
tive settlers will be intelligently an
sWered, TO organize a bulletin and
pamphlet service. arrange for co-onera
lion between the bureau and agricutur-
al colleges and experiment stations of
thirteen states; arrange for lectures
farmers Institutes and special institute
trains; cooperate with the United States
department. Of agricultural experts: ar
range for publication in agricultural
newspapers OF articles that Will benefit
Rock Island settlers; prepare articles 10
be used by country wceklies and dailies
and publish official news sheet Per,
haps OF greater direct benefit is that The
commissioner must follow the produce
market: see that the grower gets value
Tor them: suggest to him what can be
dome TO improve quality or packing: fn6
new markets and extend the old. In all
hp mi al :.