White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1914-05-24
PLIGHT Of THE
RAILROADS
INCREASED OPERATING FIX
pENSE BASIS OF CLAIM THAT
INCREASE OF RATES Is A
BUSINESS NECESSITY.

Lei US be fair to the railroads.
They are asking the government to
permit them to make a moderate In
crease in rates, basing their plea up
on the ground that the increase both
In wages and in the cost of materials
of late years has been so great as to
make it necessary for them to in
crease their freight rates If they are
to maintain their systems in good
condition and return a reasonable
profit to the stockholders.
Is this request a reasonable oneo
asks the Scientific American. 1t is
our belief that a review of the facts
would justify the Interstate Com
merce Commission in permitting
many. If not all. of the railroads
which have preferred the request to
make the desired increase. Every n
knows that the cost of labor and the
price of materials and of all purchas-
able commodities have been increase
ing, in many cases. by leaps and
bounds. And 1t by no mems follows
that because a corporations activi-
ties involve the turning over of hun
dreds of millions of dollars a year.
that therefore 1t has not in consid-
cradle measure felt the pressure of
these changed conditions.
We have before us some statistics
regarding the New York, New Haven
and Hartford railway. which have
been ent to us by its new president,
Howard Elliott. The pamphlet pre-
sents facts and figures regarding the
situation on one of our leading rail-
roads. of the correctness of which
there can be no doubt whatsoever.
Regarding tho increased pay of EN-
~ployees. ii is sufficient to say that
three reports made by the New
Haven Railroad TO the Interstate
Commerce Commission for three pc
RODS. five years apart. show that the
average yearly wage based on the
number of men employed have risen
from s633.69 in 1908 to s763.3S In
1898 and sS15.49 in 1913. In the
ten years from 1903 TO 1913 there
has been an increase in the number
Of men employed of II per cent: an
increase in the total compensation Of
AZ per cent; and an increase in the
average yearly wage of 29 per cent?
Furthermore. We are informed that
during the fiscal year ending june
S0th. 1914, the increase in the rates
OF pay will have increased the total
payroll about ss00.0 900 over the pre-
vious year.
There has been a large increase in
cost of RAILROAD operation. ETC.. due
to Legislative acts and requirements
Thus the Nine Hour law, the Ash
the Boiler Inspection law. and the
Full Crew law, have increased the
expense of the company nearly
$500. 900 per year. Ten years ago
the cost of accounting was $780, 900
per year. today 1t is about $780, 900
per year, and part of this increase is
due to the accounting requirements
of the Interstate Commerce and State
Commissions. The Fedora Act call
ing for the valuation of railways will
add another 100000 per year to tho
expenses of the company. Comment
ing on these facts, President Elliott
says that they are not quoted in any
spirit of criticism. but merely TO
show the effect that they have had
upon The income Of the company.
On the question of freight and
passenger rates. We learn that, al
though the capital investment of tho
company and its operating expenses
have been increased. the freight
rates on the whole have remained
stationary or have decreased. Thus.
In ten years there has been a redue-
tion of 69-1, 900 of a cent in the aver
age rate received for hauling 1000
pounds of freight one mile. Now
this seems to be a very small sum:
hut when 1t is applied to the freight
business of the New Haven road for
the year ending June SOth, 1913. II
is found that 1t represents a loss of
freight earnings of $500. 900. The
increase in wages and the decline in
freight rates. alone, make a differ
once of over $4,000. 600 a year in in
come. equal to 6 per cent interest or
a capital of $4,000. goo.
An interesting fact in connection
With the New Haven railroad is that
n 10 essentially a ma een railroad: