Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-20
Railroad Business Phenomenal.

er the month of June and the full fiscal
year 1912-3. period ending June 80. They
begin the statistical history of the great
est year in the annals of American trans
portation- The volume of business breaks
all previous records, and earnings are in
excess of anything yet entered upon the
books. The percentage of ultimate net
has not kept pace with gross, largely be-
cause OF Increased costs OF transportation
and maintenance Of property. Railroad
managers have wrought miracles in try
ing to give both stockholders and the pub
lie a square DEAL They are mindful of
the fact that the public has been favor
ably impressed by the manly stand taken
by the transportation interests and feel
they are entitled to the substantial rec
OsnitiOn that will attach to a $40 900, 600
yearly increase of freight revenue. The
cost Of operation and maintenance is APP
proximately $8OUO0.OOO greater than it was
three years ago. 1t is claimed.
Investors and holders of railroad stocks
are gambling on a sensational improve
ment in securities incident to a favorable
rate decision. 1t Is being already fig
ured in as leading factor in the predict
ed boom OF next fall.
Among the background influences that
have weight In creating sentiment is the
growing conviction that the interstate
commerce commission will grant the rail-
roads the per cent freight rate advance
asked for Railroad officials and directors
dlt ScIy CAREFUL HOT 10 III lIiulS-
Greet and imprudent prophecies. The point
insisted upon most persstentfy by the
railroad spokesman is that their interests
will be best served by the presentation of
the cold data. The commissioners are ia
m1liar with all arguments and theories re-
iating to the subject and are only await
ing statistics that will show the actual
performance of the past three years
Down to that the railroads are resolutely
holding themselves The complete record
OF a three-year fest iS heinP red
and that. with only such explanations as
may seem desirable, is thought to be all
! that is needed upon which to base rul-
ing
Extraordinary care is taken by the rep
resentatives of the railroads to avoid idle
predictions implying a foreknowledge of
the impending action by the commission
The most they will say is that they are
/ satisfied the commissioners are entirely
unprejudiced and will approach the sub
ject without bias or prejudgment. If they
can present strong case they hope to
win. II they lose out again they will go
ahead, as OF yore. and do the best they
can under existing conditions
The street. however is less guarded
| imam the petitioners and openly predicts
victory for the railroads. Public opin-
~. The threatened strike by the train
men has correlative market bearing
with the rate issue. Discussion about one
inevitably brings up talk about the other.
Rock Island Merger Talk.
Having nothing else to think about
| these foolish dog days some Of the sit
tiers" and tape iends' around the brok-
ers' offices find comfort in blending the
Southern Pacific and the Rock Island
| systems. As mind DEAL the PROPOSE
tlon has It's attractions, and it's consum-
| nation might be within the range of hu-
| man achievement. More miraculous
things have happened than the blending
! OF the TWO great systems named. The
Southern Pacific would find IN Rock Is
land an outlet to Chicago and st. Louis,
while Rock Island would have satisfied
| It's ambition for a line of it's own (this
would De in partnership to the Pacific.
Inc Two roads tosether would have about
1900 niles of main lines, and would
start off with an annual business of
S2,O,OO,OOO.
/, ROCK Island. with headquarters in Chi
c&go. crosses Illinois and literally grid
! irons Iowa, Nebraska. Kansas and
! okianoma, and has lines crossing Min
nesota. TO st. Paul and Minneapolis as
| Well as tapping Missouri, Arkansas.
colorado and New Mexico. New Or
| Ieahs Is also In reach of one of its long
arms.
Southern Pacific spreads all over the
! racine coast states. extends into Ne
vaua' otah and Arizona, crosses New
| mexico. decorates the map of Texas and
puts It's eastern grip on New Orleans.
In combination they traverse twenty
| states. that represent fully half the area
OF the United States. There could be no
| iegai par to the combination. None OF
| their INES run parallel. The two sys-
| TENS butt into each other. as il were.
| me blend would not be a transcontfnen-
tai hne, but 1t would represent solidi-
| neo system from San Francisco to the
| great lakes and have the supremacy
over vast area with resources and
population that will quadruple in twenty