The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-08-18
MEANS BIC LOSS
Topeka Railway Officials Wor-
ry Over Rate Reduction.
Nearly S1,5OO,OOO to Rock
Island and Santa Fe.
EXPRESS REVENUE DECREASES
Half of Loss Withstood by Big
Topeka Roads.
Parcel Post Order of Last Week
Is Effective.

Nearly one and one-l1alf million dol
lars sliced from the gross earnings OF
the Rock Island and Santa Fe railways
is the handicap that these two roads
will have to overcome in the fiscal year
showing next year on account of a de-
crease in express rates is the estimate
formed at the general offices of the two
companies in Topeka today. The order
of the interstate commerce commission
reducing the express rates and the gov
ernment in extending the parcel post
limit come as a blow to the gross earn
ings of the railroads of the country.
The Rock Island and Santa F'e as lead
ing American roads will feel the full
effect of this reduction.
The Rock Islands express revenue
the last year amounted to $1,000, 900. In
the same time the Santa Fe with a
larger territory earned about So, 250, 900.
This totaled more than $4,000, 600 for the
two Topeka roads. The average extent
of the reduction in express rates or
dered by the interstate commerce COM
mission is estimated at from % to 80
per cent. This would total a net loss
of more than $1.5O0,000 to the two rail-
road systems-a revenue that will call
for considerable business or curtailment
of expenditures.
The Topeka general officials of the
two roads will make no predictions as
to the methods to be employed by the
roads to balance this loss in the next
year.
Loss Will Be Country Wide.
1t is estimated by railway officials
that the new express order will mean
a loss of from $10,000,000 to $20, 900, 900 in
the United States. In general the ef-
feet upon the gross revenues of the
express companies has been estimated
at $25,000,000 while others say it will
be high as 100000.
Under the contracts between the
railways and the express companies
the railroads are given a fixed per-
centage of from As to 55 ceTAS on the
dollar. This would average the rail-
ways proportion as one-half or loss
to the carriers of from 100000. to
$22.5OO.000.
The officials believe that a part of
this may be offset by the increased
business in express traffic on account
of the decrease in rates. On the other
hand, however, they point out the
fact that through the governments
order August 3 the parcel post
weight limit was raised from IL to
20 pounds, thus cutting more deeply
than ever into the businesss of the
express firms.
Then there is another feature. On
packages under four pounds for all
distances the present parcel post rates
are cheaper than the new express
rates. The officials of the express
companies figure that 80 per cent of
this weight limit business has been
lost by the parcel post-and the rail-
ways are standing their share of the
decrease.
while postal revenues have been
increasing 101 per cent and express
business 113 per cent, the payments to
railroads for hauling mail has grown
only % per cent" explained a railway
man in Topeka today. 1.-The present
reduction in express and parcel post
rates may be expected to extend the
contract