The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-09-08
Charity for the Railroads.

st. Louis Dispatch: A few
weeks ago it was published to the
world that EST. Louis favors rate
raise" followed by the announcement
that "the st. Louis Business Mems
league composed Of $500 leading bust
ness men of this city-has adopted the
following resolution"
BE it resolved, that this league
hereby requests the commission to
grant to these railroads, as promptly
as circumstances will permit, permits
sion to advance freight rates in the
uniform manner set forth in thtir
recent petition upon presentation of
such figures as will prove the neces-
sity of such increases"
This entire community was then put
on record as favoring an advance in
freight rates throughout the most inn
portant territory in the United States,
the official classification Of territory
embracing all of the country between
the Atlantic seaboard and the Missis-
sippi river lying north of the Ohio and
Potomac rivers.
1t is within this territory that the
strongest and most successful roads
are situated. If they are entitled to an
advance the roads west and south will
most certainly demand an advance In
their rates, thus the good work
will be completed.
In view of this action of the lead
ing business men is it any wonder
that the community as a whole, COM
posed of only the average business
men. should lack confidence in their
leaders? Why should this organiza-
ton hasten to put st. Louis on record
as favoring this proposed advance in
freight rates throughout this great
commercial territory. Had these
business leaders, investigated the
many complex questions of fact bear
Ing on the reasonableness of this re-
quest before passing such a resolu-
ton?
Have these railroads serving ST.
Louis ever shown a disposition to
donate from their reserves any money
to advance the interests Of the COM
munity? In view of the long and bit
ter fight by the people Of the state to
reduce hi passenger and freight rates
within the state this action of the
representatives Of the business inter-
estS of st. Louis seems inconsistent.
WEI the interests that passed this
resolution pay the freight? Not like
ly. n proposed tax would be levied
on the traffic. The manufacturer,
merchants and iobbers will pay no
part of it unless compelled to do SO by
competition. 1t matters but little to-
them what the amount of the rate
provided their competition in the COM
mon market pays the same rate. The
proposed advance in rates was to be
uniform and extend over this entire
territory. Hence the relative adjust
ment of rates between them as COM
nAtitnrs unJI11 mt IS ha EJ;ct,, rloo @sN NT@t
advantage would have been gained by
any of them over the other. They
would meet in the common markets
on the same relative basis as before
the advance. The additional tax-so
considerably approved by the Bust
ness Mems leagues passed on to the
consumer with the specious argument
that the advance in the price of the
commodity is so small and trif1ing
when distributed over so wide a field
that 1t is not worth noticing.
1t may add another trif1e to the cost
of living, but what of that in view of
the alleged necessities of these pow
erty-stricken railroads which operate
in the official classification territory
namely, the Pennsylvania, the New
York Central and other trunk lines?
What are the facts about the
revenues of the railroads which were
aCCSSSlplS " IAO llGU VINO put st.
Louis or record as favoring Increased
rates?
The latest statement issued by the
interstate commerce commission shows
for the year ended June 80, 1912. that
the revenue of the railroads through
out the United States from operating
earnings al $2,826.767, and the total
opes ating expenses were 1865, $685.
431. The operating revenues, includ-
ing line under traekage rights, averag-
ed $11,8S1 per mile and the operating
expenses were 1924. The average
rate of dividends on all stocks was
4.73 per ~cent--which lis a respectable
return on capital If the good is taken
with the bad. Or to state it different
Iva little less than 2-3 or 65.65 per
cent of the capital stock outstanding
paid dividends amounting to $~400,432,-
752--being equivalent to 7.20 per cent
on divided-paying stock.
@AML