The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1914-04-09
OFFICIAL COUNTY PAPER
MANNING HIS OWN BUSINESS.

ddtSited the five e cent increase in
freight rates asked over a year ago
from the interstate commerce COM
lnissicn, is predicted. upon the re-
marke made this week by members of
the commission. President Smith of
the New York Central railroad was or
the witness stand and made the dec
laration that the railroads are going
to the devil as fast as they can" Com
missioners Harlan, McChord and Cle-'
ments said to him in reply that ac-
cording to his own figures his rail-
road in 1913 made the best eco in
its history.
Clifford T%horne, an Iowa railroad
commissioner, cross-examining Presi-
dent Smith asked him four questions.
They are reported as follows:
Here Mr.. Thorne asked him to
names any one year prior to 1913,
aside from 1910, when the net oper-
alive venue OF his road was great
er than 1t was In 1913, or as great.
Mr.. Smith said there was no year.
MI Thorne then asked him to
name one year when his net corpor-
ate income, above all fixed charges
and above all operating expenses,
was as great as in 1913, aside from
the single year 1910.
Again Mr.. Smith admitted there
WIS no such year.
%s.Mr. Tllorne then forced admissions
that the net operative revenue aver
ages for the five years Immediately
prior to 1919 were higher than for
the five year period preceding them
and that the averages for 1913 were
higher than either period of five
years.
Mr.. Thorne next asked him as to
the returns On capital Invested, and
again the admission was forced that
the returns for 1913 were greater
than Tor any year ,or for any period
Of years, except the year 1910.
ssFOliowing this, Chairman Harlan
asked Mr.. Smith II, in view Of the
admissions he had just made, he
thought there was an emergency con-
fronting the railroads.
mr.. Smith replied there was, that
the bottom fell out of things during
the last quarter of 1913 Mr.. Harlan
interrupted him, saSihg..
!" You did not base your case on
the last quarter of 1913; you started
itsbefore that quarter commenced :
When the chief Of one of the two
greatest railroads in the East is com
PEELED to admit that his own figures
show unprecedented prosperity, how
ian the interstate commerce com
mission perform its duty to the pub.
lie and grant q demand for higher
rates? Furthermore, It has been
shown that the railroad companies
have been performing free services
for big shippers at an expense thai
must amount to a large sum in the
.nStQLa 4s3~ffE
course Of a year. They should first
eliminate this discrimination before
asking the shippers IN general to pay
an Increase in rates that would allow
them to continue to incur the expense
OF these free services.
In view Of the conditions disclosed
by the inquiry Of the commission
what excuse can there be for any
great railroad presidents declaring
that the railroads are going to thu
devil? Is not any such declaration
nm injustice to the railroad companies
themselves! We often hear bitter
comment by railroad financiers upor
a~nti-ratlroad agitation, which is pic
tnred as damaging the credit OF tn,
railroad companies with the publ,
and curtaining the sale of bonds ant
stocks. Why. then should a railroad
president himself create the impress
sion that the railroads are approach
ms financial disaster? Does he mag
Inc that will help the marketing 0,
the securities Of his company? And
dfyuch 4 statement is obviously un
- NE2ft f<TNr-fTN .ALN
Maaasae4p the railroad companies in view
& their financial reports. would hi
net be furious II any outsides shoult
east such slir upon their reall,
bright prospects?
SusssNs @Ae<
sIsiEs NEW BANK SYSTEM WELL
;: !. STARTED.
Thus far the organization Of the
new blank system has progressed with
qnItss- geppssfal satisfaction. The first
1tep TO be taken was the determine
hon Of the number Of reserve marks
- EA+N gn a~tLF - EA- AZ