New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-12
MAINTENANCE OF
RAILROADS HIGH
Forty-nine Eastern Com
panies Show $S7, 100000
Jump Since 1910.
PROPERTY INVESTMENT
INCREASES $780, 100000
Twenty-three Per Cent In One
Case and Six In Other
Rising Costs Analysed.

.
Great emphasis was laid by the execu-
tives of the Eastern railroads seeking an
increase in freight rates from the Inter
state Commerce Commission at the recent
hearings IN Washington on the Increased
cost In the maintenance OF roadway ana
equipment This was due largely, II was
shown. 20 the demands OF regulatory
commissions and the public for greater
efficiency Of operation. To continue to
meet these ever expanding needs, the car
riers argue, they must receive higher
compensation for their services.
Newman Erb, president OF the Mime
apolis & ST. Louis Railroad, said few
days ago that unless the conditions
brought about since 1906. when the Inter
state Commerce Commission was vested
with authority 70 fix railroad rates, were
fundamentally corrected, the consequences
would be irreparable. The shrinkage In
the market value OF railroad securities
during the last eight years he estimated
at sS.coo,OoO.oo. This loss. he said, has
fallen upon the investors, primarily, OF
this country.
Maintenance expenses OF the rorty-nne
Eastern railroads involved in the Eastern
rate decision since 1910 have Increased
S87, 10000, or q per cent, whereas the IN
crease IN the property investment was
$4,000 900, or a little over per cent
Analysis Of these rising costs as between
repairs to track. bridges and buildings
and repairs to cars and locomotives SHOWS
a more rapidly rising trend in equipment
expenditures.
Considering the four great systems east
of the Mississippi as examples, It Is round
that the Pennsylvania's maintenance OF
way expenses since 1909 have increased 20
Iper cent, while maintenance OF equipment
went ahead q per cent. The New York
Central increases are 10 and IS per cent
respectively, and the Baltimore q ONO
a. and Is per cent, respectively. with the
Erie however. conditions were reversed
maintenance of way increasing nearly
four times as much as equipment Inc
increases In equipment costs are du9
largely 10 the making over Of a great
many wooden cars into cars with steel
underfrernes IN order that the shocks OF
modern equipment may be better ao-
sorbed. and 10 the higher percentage OF
The individual cost Of repair TO locomo-
tives.
The moro prevalent use OF the huge en-
rines and trains OF tho present day are
largely responsible for the greater OK
uenditrIres for maintenance Of way.
survey of the situation covering the last
six wears indicates that the railroads have
4.I,~ aaf T1QfnG
maintenance costs through greater EN-
cheney of labor and specific gain IN
trainload, but the continued increase IN
the demands of service, they say cannot
longer be met unless higher rates are
granted.
II is also interesting TO note that since
1907 the mileage Of the Eastern lines has
only increased 1853 miles, but that the
total trackage represented by additional
main line track sidings and yards has
increased 1854 miles. or 10A per cent
When II is stated that this additional
traokage cannot be maintained for less
than So.ooo,ooo per annum the seriousness
OF the increase becomes apparent as the
added mileage is practically non-revenue
producing.
AS TO h1Eher wages ON hll inc IhiiIVduS
of the United States, IL appears that in
1903 81 spent In wages provided for all
the labor required TO move Is passengers
and 24o tons of freight one mile, while in
1911, the latest for which the reports are
available. s. similarly expended provided
for tho movement Of only n passengers
and 10 tons OF freight one mile.
One dollar Of the total operating ex-
penses in the former year provided for
the carriage OF II passengers and l4S tons
Of freight one mile. while in 1911 81 so
expended provided for II passengers and
only 1S3 tons Of freight one mile
The various taxing authorities to which
the railways were subject in 1903 de-
manded 81 in taxes for each $40 pas
sengers and 2sS7 tons OF freight carried
ono mile during that year; in 1911 tho
taxing authorities demanded 81 in taxes
for each 30 passengers and 2,43 tons Of
freight moved one mile.
Inasmuch as there was no general
change In tho rates for railway services,
and as 81 spent IN wages, materials and
supplies. or IN taxes, accomplished 80
much less than formerly, II is clear that
the efficiency OF capital must have made
up tho decreasing ability of the dollars
spent for those items, in so far as It was
made up at all.