The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-06-12
Case of Eastern Roads Re.
quest for Higher Rates.
Considerable Support Behind
Their Late Efforts.
EXPENSES ARE ON INCREASE
Wages, Taxes, Materials-All
on Price Rage.
Other Items of Interest in the
Traffic World.

The railroads of the east have IN
dertaken to show that the interstate
commerce commissioners are not in
fallibIe guessers in matters pertaining
to the proposed rate increases, and at
the same time they have adopted the
suggestion of the commission 10 trS
again. When the application of the
railroads was denied 4 year ago, Com
missioner Lane, stating the condition
upon which the eastern and western
cases were decided, said:
1T now appears probable that at
the end of the fiscal year. 1911, the
carriers will in the main enjoy earn
ings as high as those they had in 1910
the highest in their history
The railroads now are showing oy
the interstate commerce commission s
official figures that Mr.. Lanes prophe-
CIV was not borne out by facts subse-
ouently developed. According TO the
ofTciaI reports. there was a decrease
in 1911 of nearly 500. O0o,O 600 in the op-
erat ting income of the railways, due
TO an increase of nearly S93,OO0O0 In
operating expenses. and an increase OF
over 81 600, 900 in taxes, whereas oper-
ating revenues increased less than
$400O0.00O.
In concluding his opinion in the east
ern cases, Commissioner Prouty said;
IF actual results should demonstrate
that our forecast of the future Is
wrong, there might De ground for ask
ing further consideration u 'iiiS
ject."
ton" the railroads point out that the
figures showing decreased operating
revenues only partly reflect the con-
firmation of the fOrebodings upon
which the railroads based their apph-
cation. The figures for 1911 covered
an operated mileage of 246,124, agalnsO
only 24O,SSO miles in 1910, an increase
OF 1884 miles of track of all descrip-
tior.s or an increased investment OF
$3.50 coo 600 over 1910 on basis OF S4Z'-
900 a mile.
for the Railroads the Saturday Ev-
ening Post. which is not even under
suspicion Of having corporation lean
ings, says:
Three years ago. when the railroads
applied for a 10 per cent increase IN
freight rates. we were very decldeoIy
of opinion that they were not entitled
10 il: and that was the opinion Of the
interstate commerce commission after
an exhaustive hearing. Eastern roads
are now moving for per cent ad-
vance in freight rates and can snow
some pretty good reasons why they
should have it.
For three years railroad expenses
have been quite steadily increasing in
a ratio greater than the increase in
revenue Advances in wages recently
secured by firemen and engineers will
of course, still further augment ex-
penses. Other wage advances will be
demanded. One of the strongest rail-
road bond issues ever brought out in
this country was offered to the pub
lie only last month at better than AZ
per cent, and only portion OF 1t was
taken Roads of first-class financial
standing are paying SO and per cent
on short term notes for capital to meet
their requirements. Weak lines are
paying pawn-brokers' rates. There is
TO reason to presume that labor, sup
plies and capital will cost less. The
presumption is the other way
We do not think it should be the
policy of the government that the
roads are never, under any circum-
stances. to be granted an increase in
rates. They are entitled to an i'm
partial Judgment on the facts, and we
have no doubt they will get it,