New-York tribune., 1910-11-01
TROUBLES OF RAILROADS
State Commissions to Blame,
Says Rock Island Official.
AT CHICAGO RATE HEARING
Recent Decisions Will Cost the
Burlington ssoo,0oo, Says
G. G.. Burnham.

,~l,icaro Oct s1-Stanley II. Johnson. as
sYstant freight traffic manager Of the ROCK
Island lines. declared to-day before the IN
ferstate Commerce Commission that certain
state railroad commissions were causing
most Of the trouble between the Shippers
and the railroads. Johnson's statement was
made while he was being questioned oy
Commissioners Franklin X Lane and +. l.
Clark who intimated their belief that the
railroads were not satisfied with regulation
because II limits their power to increase
revenues.
The hearing on the proposed advances in
rates win be finished tomorrow. II is be-
lieved. and the evidence viii then he re-
viewed I'm Washington before a decision IS
announced.
In conducting the examination Of John
son. Commissioner Lane delved into the ac-
fions Of the railroads previous TO the eXis-
sence Of the various commerce commits
sions
Why didn't YOU get Up TO this rate be-
fore these interfering commissions came
sato existence?" asked Commissioner Lane
state commissions are an crnhaTrass-
r1ent and al the trouble between the ship
,,ers and the railroads could be adjusted IN
n satisfactory manner II the different state
commissions were out of the way" replied
johnson.
You are not satisfied with regulation
because II limits your power to Increase
your revenue" said Commissioner Lane;
'and you were not satisfied with non-regu-
lation prior to 1906. because you say that
Jed 10 bankruptcy Now, what will satisfy
you? In 1895 you had an opportunity 20 set
the rates higher. yet your own and other
roads were placed IN the hands Of re-
ceIyers-
Yes" interrupted Johnson, I'VE insight
Ct along falnously With y'suT DONORS end
colleagues, If We did not have all Of these
state commissions to contend with
rs it not a fact" asked Commissioner
Lane that YOU are laying on the Inter
state Commerce Commission the burdens
which were laid on you by the State Com
missions"
i do not see Il that WAY" replied the
witness There is conflict between the
state and federal bodies to control the
railroads. If the responsibility were not
divided it would be simpliHed."
Rate decisions at Denver, Spokane and
other Western points viii cost the Chicago.
Burlington & Quincy Railroad $4,000. The
old rebating system reduced the freight
. revenue of the road from 3 10 : per cent.
2 tlou-to accumulate surplus now as il was
4 Zen years ago.
The foregoing were among statements
shade ar the hearing to-day by Claude G.
Fsurnham, vice president Of the Burlington,
who was the first witness. On the subject
of Western rate decisions Mr.. Burnham
raid:
The decisions have not been ordered into
effect as Vet, but .unless they are mate
rally modified they will oonservativeIy es-
iimated. cause the Burlington a loss Of
SsG09e0 annually"
Mr.. Dawes, of the Burlington, asked what
effect on revenues rebating east of the
Missouri had before the law made the
practice illegal.
Rebates were given almost exclusively
On high class freight" replied the witness.
The result was a tate that was much
lower than was fair 10 the railroads. But
st no time did rebates cause more than
10 . per cent decrease ia the revenue Of the
Burlington
You have mentioned. said Mr.. Lyon, of
The commission that the proposed in
oreases would give the Burlington road
about S4o06oo For what purpose do You
want that money!"
THE Burlington needs 100000 and more
TO maintainSthe efficiency Of the property
4, a q transportation machine"
When Mr Lyon inquired if witness con
sidered the Burlington to be in worse
1irancial condition than # was in 1890 the
latter hesitsted and then answered slowly:
1T IS not in as good q condition 10 accu-
mulate surplus"