New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-16
WABASH BOARD
WITHDRAWS PLAN
Reorganization Put Up to
Interstate Commerce
Commission.
FACTS AND FIGURES
GIVEN IN NOTICE
Heavy Gross Earnings and Big
Business Offset by Higher
Costs and Taxes.

The committee which last May SUB
mitted to the Public Service Commits
sion of Missouri and the Public Jun
ties Commission of Illinois a plan Tor
the reorganization Of the Wabash Rail
road Yesterday notified those bodies OF
the withdrawal Of the plan. In making
public the notice Of the withdrawal
Winslow S. Pierce, chairman or the
committee, put the roads. future square
lv up to the Interstate Commerce Com
mission and the state commissions
which have jurisdiction over its affairs.
In view of the fact that the wabash
is one of the railroads included IN the
Eastern freight rate advance case,
which comes before the Interstate Com,
merce Commission next week. railroad
men saw yesterday in the document
submitted by the committee one OF the
most eloquent arguments that have yet
been presented in their behalf.
In reaching its decision the commit
tee stated that il has not treated as
decisive condition the war which now
devastates Europe, but in the definite
withdrawal of the plan conditions which
pertain to this country alone were con-
sidered
"Whlo the plan of the committee"
says the notice, "was presented to the
commissions in May last, il was formu-
lated in respect to the relation of the
fixed charges to revenue applicable
thereto. II was formulated in the con
fident belief that the declining condi-
tons then recognized were in process
of prompt correction, and that the plan
would be indicated by future opera
tions. conducted under the broader con-
tpt ~fF 10
rights in respect to railway properties
which now prevail.
with the largest volume of business
and the largest amount of gross earn
ings realized in any year except one in
the history Of the property, with COM
pleted expenditures Of $l0,500,000 in
improvement and equipment, the OPP
Grating income of the property for the
fiscal year closed June 80, 1914. was the
smallest in any year. save two, during
the period of ten years last past. In
creased operating costs. increased
taxes and reduced rates have produced
the result that for this year of large
business the earnings Of the property
applicable to the payment Of fixed
charges fell over $4,000 short of pro-
viding for the interest on underlying
mortgages. and provided no return on
the large capital expenditures made
during the receivership."
Briefly. passengers are now carried
on the Wabash Railroad" says the
notice, Eat the rate of one-tenth of
cent per mile less than it costs the
railroad to run its passenger service.
Freight is carried at a revenue of only
little over one-tenth of a cent per
ton mile over the cost of carrying it.
Under these conditions no increase.
natural or phenomenal in the volume of
either class. or of both classes, of
business will Offset the proportions of
the cost structure which has developed.
There can be but one of two out
comes disaster to the railways and
all the railways represent in their rela
tions to investments, savings, insur-
ance and to general business, as we'll
as TO public requirements and con-
venience; or an intelligent reversal of
the policy which has been carried so far
beyond the interests and demands of
the people and so far beyond the
remedy for evils sought to be cor
rected."