The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-02-24

Of dividends have increased more rap
IDLY than the additional mileage built" "
Surplus Doubled in Ten Years.
| Commissioner Lane points out that
surplus more than 100 per cent in ten
years. In an elaborate discussion of
the financial conditions of the various
lines, the opinion holds that 1.-THE car
riers do not need larger revenues for
purpose OF maintaining their credit or
insuring them against temporary ad-
versity." The position is taken that
| the reasonable rate as defined by the
railroad men makes the traffic man
ager statesman who controls the
| economic conditions of the country,
setting at naught our tariff laws and
artificially creating markets and CEN
| ters of Industry
In considering cost of operation, in
/ Guiding wages, materials and all else
| that properly may be taken into ac-
count, the opinion holds that "the cost
| of the up-keep of the plant and the
return on its value amounts to more
than three-fourths of the rate that is
charged for transportation" Railway
materials are found not to have in
| creased, fuel has increased slightly and
/ wages considerably. However, the last
| six months of the year of 1910, in
| which the new wage sch eduleS were in
| effect, show for the carriers the lar
gest operating income they have ever
/ enjoyed in ;-ny half year.
In the southwestern case, the opinion,
which was prepared by Commissioner
| Harlan, the amount of the increased
| revenue involved in the proposed ad-
| vances was not SO considerable as in
| either of the cases presented herewith.
| The increases were defended by the
| carriers. however, on the same grounds
of insufficient revenues and inadequate
returns on investments.
The general rate revision made by
| the carriers, the first class rate from
| st. Louis to Texas common points was
| increased from $1.37 to $1.47 and cor
responding increases were made in the
| ether classes. The commodity rates
| also were increased substantially and
| the record shows that the great bulk
| of the Texas traffic moved under COM
modify rates, only about Z per cent
moving under class rates.
The effect of the increases was to
raise the rates not merely from St.
Louis to Texas points, but from all
| points east of the Mississippi river to
| Texas points.
Commissioner Harlan finds that the
| carriers in the southwest have not
! prospered as have many in other parts
! of the country and in common with the
other commissioners. declined to DIS
| turb the advanced first class rates. The
| opinion fixes the second class rate at
81 25 instead of $1.29, and orders the
| old rates on the remaining classes. AS
| the lower class rates affect an 1ncon-
/
lions of the carriers is substantially
sustained, the conclusion reached be-
ing a recognition by the commission
| that their financial condition was such
as to Justify an increase in their reve-
nueS.
Wall Street Surprised.
New York, Feb 24.-The decision
of the interstate commerce commission
was a surprise to Wall street, which
had looked forward to the approval
of at least part of the increases ask
ed in freight rates. The decision was
not announced until after the stock
market had closed, but earlier in the
day it became known that final action
might be expected in the afternoon
Brokers' offices were kept open after
hours and habitues of the financial
district waited for the news from
Washington. They received it in as
constituent.
Some nervousness as to the outcome
was shown in the market early in the
day but reports that advances would
be granted were accepted SO generally
that stocks quickly recovered. Brok-
erage houses with international con-
nections began preparation as soon as
in European markets for execution
before the opening of the New York
market in the morning.
Since the first of the year stocks of
most of the important railroads have
advanced 10 points or more, and
while the rise had been due in part to
expectations of better Industrial con-
ditions which affected the whole mar
ket, belief that the railroads would be
permitted to increase their rates was
to some extent responsible.