The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-01-04
Year Past One of Perplexity for
American Railways.
Presidents of Roads Answer
Questions as to Conditions.
PROSECUTORS --PERSECUT0RS
HI. u. Nudge Calls 1t "Unbusl-
nesslike StrangulatiOn.
Other Items of General interest,"
in the Traffic World.

was one or unpreceueH1o" ~
A year ago the first decreases IN sios'
earnings of any Importance silice
August of 1911 were beginning 10 ap-
pear. and the eastern lines were con-
fidentially concluding their arguments
before the interstate commerce con-
mission for per cent increase IN
freight rates. Not until August l. tne
day Germany declared war on RUSSIA;
was the rate decision handed down anu
then tba < per cent increase was grant
ed only to those roads operating west VI
Buffalo and Pittsburg.
The New York Evening Post recently
sent out questions to many VI tno
prominent railway heads In the country
and alone with the answers sent py
the presidents summed up the events
leading to the freight rate increase
granted last month. In the lace OF
steadily decreasing earnings, the fos'
says, the lines operating east OF buI
falo and Pittsburg SUCCEEDED III "a
openin1 the per cent rate case. anu
on December IS finally won favor
able verdict. The decision came at the
moment when depression In the rali-
road industry-as result Oh the seH
eral derangement of trade caused py
the European war-was at !ls uat 80;
II left both Wall street and the pusl-
ness community at large in DOUBT as u
wnat would be the outcome next year.
even with the higher rates conceoeu.
The questions submitted by the fos.
tn the railroad heads are given pelow
What do you LOOK Ior as one oo ~ the
Influences on railway affa1rs IN tne
coming twelvemonth? Do you expect
lax to be a good or a bad year IRON,
the railroad viewpoint? What s.ou.o
be the trend of gross and net earhlhss
1t 1t not true that the ENFORCED ecu
omies of the past eight or ten months
! will cause unusually heavy purchases
I OF rails. equipment, and supp1es our
inc the next twelve months? 10 What
extent, in your opinion. mas the Ia
road situation in general peen helpeu
and To what extent injured by govern
ment regulation up to the present date!
What changes, If any. should be mace
in the existing system and machinery
of rate regulation?
Answers received to the foregoing
questions by two western raiiroao
heads are as follows:
Henry U. Nudge. President ROCK
Island.
The dominant influences or railway
affairs in the coming twelve months
will be better treatment OF the raii-
ways by the lawmakers and those VINO
are delegated to give effec. to the
the part Of the latter to treat the rail-
WAYS more fairly. I believe the year
1915 will give the railways larger
gross earnings; I doubt II the net
earnings will show much increase pc
cause of the necessity for higher oper-
ating costs, particularly as to main
tenance.
It is true that the enforced econo-
mics of the past eight or ten months
will cause unusually heavy purchases
of supplies if the railways have the
vherewithal to make these purchases.
The railway situation was helped by
regulation until the regulators reached
a point where they were not only
prosecutors. but prosecutors OF the
RAILWAYS For the past twelve months
there have been no benefits to the
railways from regulation, and the I'M
businesslike strangulation has been
very ruinOus:
The changes that 1 would suggest in
the existing system and machinery OF
rate regulation are. first, that there
should be only one rate regulation
body in the United States for the regu-
lation Of all freight and passenger
rates. and, second, that this body
should be composed Of a sufficient
number of able men to handle the af-
fairs more promptly, and that it
should be divided into sections cover
ing the various parts of the country.
The enlargement of the commission
with a knowledge of railway opera
ton. and others with some financial
knowledge.
1t is manifestly impossible for forty
eight states to retain the regulation
of rates within the states. without con-
flicting with the authority that regu-
lates the rates for freight and passen-
gers passing through two or more
states.
Edward p. Ripley, President Atchi-
son, Topeka & Santa Fee.
1t looks to me as if the current year
taken as a whole will not be as good
as last year. either as to gross or net
earnings. There are some exceptions,
no .vever, in the territory traversed by
western roads. which will get large
benefits from the heavy crops.
The enforced economies Of the past
year will necessitate some purchases
during the next twelve months; but
not large as compared with those
made in ordinary years.
Government regulation has helped