The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-08-28
RAILROAD NEWS
New York Fears for Life
Blood of the Country.
Thinks Rail Lines Are Being
Imposed Upon.
THEIR CREDIT IS IMPAIRED
No Longer Possible to Secure
Sound Investment.
Other Items of General Interest
in Traffic World.

! The Interstate commerce commits
| sions bulletin of the revenues ana eN-
penses of steam railroads of the coun-
trv for the ten months of the tlscai
year ended April 80 shows that the OPP
/ Grating revenues of the country ran
| roads increased from o. 26S, 221, 494 for the
| ten month period year ago 10 $z'oov,
AL, 752 for the ten months endlng "ltn
last April, says the New YORK dli1 11ss.
This is an increase of $50, 22O,25S. But
the operating expenses of the roads
] rose from $1,553, 422,947 last year TO $l,-
| asa. 994. 725 this year. This is an increase
| of S32, 521, 77S or 1901, $50 more tnan Ine
gross increase in revenues. 10 Ihls
/ great increase in operating costs mus
| be added an increase of $9,666,ozf N
| taxes, the taxes levied upon the rail-
roads by the states through which their
lines run. These increased costs ana
taxes which more than offset the IN
crease in gross revenue, insomuch tnat
the operating income OF the roaos; ciie ~
net income which was $62S, l9,lzo III
last years ten month period, was only
$61S, 340,0S5 this year, loss OF $1U'S'S'
041.
business that shows the enormous
increase of S32,000,0O0 in gross in
year ought, if all conditions are SOUND
to. show a very large increase in net
The railroad net diminished more than
$4,000, 600. 1t is all summed up IN the
showing that for each dollar or new
business the railroads secured IN TINS
ten month period they had to pay on.
H31 These facts are already Well
known to the railroad and financial
public. 1t is stated on good authority
that on the average it now costs the
railroads $1.40 to buy supplies and ser
vices which ten years ago cost them
but a dollar
Nevertheless the interstate commerce
commission refuses to permit the rail-
roads to increase their freight charges
In two memorable decisions rendered In
February, 1911, one by Commissioner
Proutv and the other by Commissioner
Lane the new rate tariffs filed by the
railroads east of the Mississippi and
those of the further west and north
west, increasing the charges for freight
TRANSPORTATION, were Cancelled and or
dered withdrawn
These conditions cannot continue
without imperiling the solvency of many
railroads Already they have impaired
the credit of all railroads. 1t is nc
longer possible to secure investment
capital on favorable terms for rail-
road uses. Securities that were attrac-
tive a few years ago are now practical
Nv unstable and there have been no
table instances of reductions in the rate
of dividends. The surplus accumula-
lions of many of the railroads have been
invaded for upkeep, in some cases, ano
in others dividends if paid at all must
be paid from surplus.
This is the case of the railroads
not the whole case, only its structural
features for impressive details might
he added without end. But hold, is it
the case of the railroads alone? Is 1t
not the case of the country, of the peo-
pie themselves? The people cannot, by
their laws and their public policy, take
the life blood of this great business in
terest without impoverishing their own
vital current.