The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1914-02-13
FREIGHT RATE INCREASE DENIED
COMMISSION REFUSES PETITION
OF RAILROAD FOR ADVANCE.
Chairman Of Railroad Commission
Said Texas Roads Had No Merit
Back Ct Request.

austin, Textile railroad commits
sion Wednesday refused the petition
OF the, railroads of Texas for a hearing
TO consider the adyisability of giving
them horizontal advance of Is per
cent in all freight rates in effect in
this state.
Inc petition was adopted at meet
Ing OF the general managers of thirty.
one Texas railroads held in Houston
on Jan. IA, and representing So per
cent of the railroad mileage in this
state.
Chairman Allison Mayfield wrote a
letter to the committee of general
managers giving his views.
The petition stresses the low values
placed on the railroads in 1894 and
1895, saying they could not be repro
duced at anything like that cost, and
betterments are costing a very large
amount It was insisted that the aver.
age value today is at least $4,000
per mile, and that on that valuation
the earnings of the past four years,
not counting operating expenses,
taxes. etc., ranged from 297 to 3.57
per cent. The state tax boards valua.
ton averaged $4,000 per mile, it is
stated, and on that from BAT to 4.3O
per cent was earned 1t is contended
that the earnings are very much less
than fair return on the value of the
properties, and if they must be i'm
proved, as demanded by the commits
sion and public, the roads be allowed
to earn more revenue.
The petition recites that the flood
loss last December was between ST.
100000 and $10,OOO,OOO; that the earn
ings for the five months ending Nov.
30, 1913, were $4,126,3S1 less than for
the same five months of the preceding
year.
1t was further stated that the com
promise tariffs of 1899 were entirely
too low, and since that time wages
of railroad employees have increased
80 per cent, cost of materials IN
creased IS per cent and taxes 100 per
cent per mile Of road, while state and
federal safety laws have materially
increased the expenses of railroads.
Chairman Mayfield's letter follows!
Your letter of Jan "a, 1914, cover
ing petition signed by yourselves as a
committee representing practically all
the railroads Of Texas has been re-
ceived.
you ask for a|horizontal increase
in the rates of transportation of Is
per cent, and among other things as
signed is difference in the value of
properties of the railroads in Texas
as estimated by you and that fixed by
the railroad commission, and in
creased cost of operation. You also
refer to the so-called compromise be-
tween the railroads and the Texas
railroad commission of 1899, and make
mention of the fact that reduction
have been made from time to time
since then in the rates fixed by the So
called compromise.
"You are respectively advised that
so far as I am concerned your applica-
ton is refused because there is no
merit in it.
Il am not going to quarrel with you
about the value Of your properties be-
cause those values, so far as we are
concerned, were estimated and deter
mined by skilled and capable engi-
neers long ago, when you had an op-
portunity under the law to controvert
it, which the railroad failed to do.
CAS- to the increased cost Of opera
ton, l have to say, that is a factor
which enters into all individual af
fairs, and | know Of no reason why
you should be exempt from circum-
stances that affect every other in
dividual or enterprise.
"As to the alleged compromise of
1899, in the first place | might say
that l am the only member of the
railroad commission who was a COM
missioner at that time, and l strongly
protested against any such alleged
compromise. Aside from that, how
ever, it is proper to say that the bust
ness of the railroads of this state has
vastly increased, and there is no rela-
tionship whatever between conditions
in 1899 and 1914 in Texas"