New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-07
COSTS USE Up EARNINGS.
CommerCial Organizations Not
Against Higher Freight Rates.

Against Higher freignl hdteS.
Declaring that action as TO freight rate
advances should be based upon the
known past, not upon the half revealed
6resent," the Railway Business Assocla-
(tion. in a bulletin entitled Railway In
come Still Under 1910" presents figures 10
show that in the years since 1910 Tor
which statistics are complete-l9n ana
19l2-net corporate income was ~ per
cent and IS per cent respectively under
1910 For eleven months Of 1913 prellmln-
airy returns covering revenue, expenses
and taxes are anaylzed, and by estmat-
ang fixed charges and other non-operat-
ing deductions 1t is shown that there IS
no reason TO count upon net corporate
Income even IN 1918 as large as II was In
1910 available for improvements ana diVi-
dends Fixed charges holding to past
averages. income for eleven months IN
1913 would be s1.6S9,912 under the same
period three years earlier. and this
with a plant in 1918 estimated to nave
q. eol more miles of track than the plant
of 1910. 295. 331, sol moro pounds of locomo-
tive tractive power and 14.l7o,9I0 more
tons Of freight car capacity and 10
have carried 7,9OOOOo,Oo0 more tons OF
freight one mile.
: Recalling that steam railroads In 1917
had the smallest listings Of new securl-
hies in ten years and non-rairoad cor
operations the largest. 1t is remarked
that "the practical condition OF declining
Scredit is not disputed"
. Resolutions have been adopted by pro
Iminent business organizations IN 81
Louis, Cincinnati, Pittsburgh, Philaoel-
Hhia. Baltimore and other large cities
lIavoring or deciding not TO oppose higher
kare!ght rates whereunder the Eastern
lsoads may provide better service Fresl-
sdent George A. Post says:
commercial organizations. local state
Mnd national. can promote national pros
tnerity by making known. as some lead
ling bodies already have done. their con-
Eviction of the need for more railway
ksoc,lit,es and their willingness to pay
twhat is legitimately necessary to get
hhem." $3.50
E. c. Simmons, of St. Louis is quoted
ias saying:
thousands of shippers have come 10
realize that their business is prosperous
sonly when the railroads are prosperous
and any slight increase in freight rates
(which they might have TO pay woulu
Lsoon ba lost sight of in the enormous
Ancrasse in the profits Of their business
(which this general prosperity "ouiu
bring about"
The bulletin adds
Hardly any national calamity couid
tba more exasperating than lhuusti4@,
Iprostration descending in the mast ot
hhpsv times, with order books fulI anu
mills running to capacity
brought about by congestion or ter
lrninals. throwing into idleness' WIN
their employees. factories which could
neither obtain raw material nor deliver
FINISHED product while foodstuns lay
rrotting in cars ard elevators.
..The public had better be safe than
.sorrv-assured of good service rather
than in danger of a transportation
breakdown
4 second article. Making Equipment
Carry All 1t Can" tells what the ship
pers and the railroads are doing 10
minimize the necessity for more facili-
ties" but they can not do enough.
with net car surplus on August J.
1918. of 5S.455 and a decrease from that
date TO autumn low supply equal to the
annual average decrease from August j.
l9OS-l2. or 10000. the autumn net
shortage IN 1918 would be 9l,945. as
compared with $1,000, the previous rec
ord. that of 1907. The shortage thus
indicated would be aggravated by a
severe winter possibly into great ma
tional congestion.
AS forecasting a good sized fall ton
mage cereal crops are estimated at about
the ten-year average. with cotton 39.l
per cent above; while iron production for
the first six months Of 1913 was 2
million tons above previous high record
expenditure for construction Of new
buildings outside New York City In eX-
cess of previous record. exports per
cent over 1912 and for seven months OF
lie13 bank clearings outside New YORK
JCity SO per cent greater than for the
,same period in 1912 In this situation
Chairman Clark, Of the Interstate Com
Irerce Commission. and President Krutt-
lechnitt, of the American Railway Asso-
lciation in letters. as well as the Ma
tional Industrial Traffic League in res
lolution unite in calling upon all con-
lcerned to do their utmost with a trans
lportation plant inadequate for peak Of
t1ool