Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-01-17
DISCUSSION or FEDERAL OWNER.
SHIP OF RAiLRoAns NOW
NATION WIDE.
CONTROVERSY WITH RIPLEY
GROWING IN MAGNITUDE
Therns Accuses Railroad Managers
With Exasssratins Sentiment in Or.
der 20 Prejudice Public Against Gov.
eminent. Owned linss-Alisssd Per.
sseution Strings Increased Earnings.
Special to Times Republican.

/ OS0 NAOAA0S, Sdu 49, 40 OPEN lOIe
| ter correspondence between Clifford
Thorne and e. o. Ripley regarding
railroad profits has at least had the
effect of precipitating a national dis
cussion Of government ownership OF
railroads. In letter Just sent to the
president of the Santa Fe Mr. Thorne
refers to new proposition advanced
and it's relationship to the rate cases:
| 1.-THE principal new proposition Of
any significance that you. advance in
your last letter relates to what you
call the policy by the government of
prosecuting corporations, and that II
the same continues that the govern
ment will doubtless be able to buy at
a lower price than now prevails. This
proposition OF government persecution
Of railroads is now being urged in
magazines. newspaper articles and in
terviews, from one end Of the nation
to the other. It is given to bolster up
the claim put forth by the railroads
for advanced rates. This, in some re-
spects, directly in line with your for
mer utterances about government own
ership. The direct object in both cases
is to create sentiment in favor of ad-
vanced rates. You create hydra
headed monster, call it government
ownership. and then tell the public
| that higher freight rates is the only
alternative. And you tell us we have
been prosecuting you. that YOU must
have relief, and that the relief is high
er freight rates. We have got down
to the milk in the cocoanut.'
Let is consider few moments this
persecution that you talk about and
see II there Is any ground for such
statements. 1t is unfair to compare one
! or two years with another year. You
must consider the general tendency.
Regulation commenced 20 years ago.
The interstate commerce commission
was created in 1887. I find from an
examination Of the statistics prepared
! by the commission, from the reports
of the railways themselves, to the
! commission, that during the last Ave
or ten years the railroads Of the coun-
try have been able to increase net
earnings at much greater rate than
ever before in the history Of American
! railroads. find your net earnings
last year, above all operating expenses.
| were more than 100000 greater
than they were fifteen years ago.
| find that these earnings above all
operating expenses have trebled since
| the organization Of the Interstate COM
merce commission; and that your net
earnings per mile Of line during the
same period have almost doubled"
Net Increases Shown.
Mr.. Thorne enclosed table showing
in condensed form the actual operat-
ing revenues and operating expenses of
the American railroads from the time
Of the organization Of the interstate
commission to the present. The net
revenue in 1887 was $315, 100000 and in
1913 it was s93s,0Oo.0o0. The per mile
net operating revenue has ran up from
$2,307 to 1929 In 1904 It was $2.998
per mile. In 1908 it was $3.171, in 1909
it was s3,5O5. in 1910, it was 1896, in
1911 it was $3.50. in 1912 it was
$3,Sss. and last year, taken from fig
ures on the bulletin on revenues and
expenses it was $4,23S. The final fig
ures for the two years last named will
in fact be higher when the last compu-
tations are made.
Railroads Realize Magnitude.
That big railroad men appreciate
perhaps better than the Iowa people
who pay the freight the magnitude Of
the victory Won for the Mississippi
river cities of the state. in the case
fought to a finish by the Iowa COM
mission, Is shown by statement in
book just published by Chairman
Mccain of the Trunk Line association.
After telling of certain Michigan
case and contrasting 1t with the out
come in the Iowa case involving the
Mississippi river rates, he says in the
book:
The Commission here made the most
radical modification Of the percentage
system that 1t had made prior to the
date on which it was rendered. The
decision is so replete with matters of
import in rate adjustments and
especially in points concerning the per-
centage basis that it Is quoted almost in
full