New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-05
FREIGHT RATE PLEA
OPENED In WEST
Roads Ask Increase to Add
S10,000,000 to Their An
nual Revenue.
ARGUE FOR ABILITY
TO PAY 7 PER CENT
Counsel for Shippers Oppose
Demands Before Interstate
Commissioner.

Chicago, March 4.-Coutendiug that
the margin between their income and
expenses was becoming so small as se.
riously to affect their credit, forty-oue
Western railroads began their arCu-
ment before Commissioner W. VI
Daniels here to-day in their applica-
tior 20 tho Interstate Commerce Com
mission for an increase in freight
rates which, il was said. would add
$4,000 900 10 their annual revenue.
The chief contentious Of The roads
Rs outlined by {. F. Schsf, president
OF the Missouri, Kansas ( Texas Rail
road; : " FELTON,, president Of the
Chicago Great Western, and c. G
Wright. counsel for the Chicago &
North Western Railroad, were as fol-
lows:
That all the railroads should be per
mitted 20 charge enough to enable
them to pay at least Z per cent divi-
bends. with a margin over that for
surplus.
That at present many Of the roads
are not able 70 pHy more ;hAn per
cent. and some Of them cannot pay
anything
That their small profits impair their
credit and they are compelled to pay
high rates for new capital.
That public demand for elaborate
passenger stations and freight ter
minals 10 enhance the beauty OF cities
such as at Kansas City. Mo-, and 81
Paul. has placed burdens on the ra'l-
roads without Increasing their reve-
MUGS.
That increased equipment, higher
wages and restricted legislation have
greatly increased the expenses Of the
roads involved.
After opposing the demands Of the
roads. on the ground that what they
asked for would amount not 10 So
OOOOOO hut to s750oO00 or $780,
100000 a year Clifford Thorne, who APP
reared as leading counsel for the ship
pers. asked M SchaT II Il were not
merely on account o. the European
war that the railroads were asking In-
Crcases.
Mr.. Schaf said it was not because
%. the way that tho rates were asked
for. hut because Of general business
c rditfons since 1908. In the last sew
on years the average net income on the
fortv-one roads, he said. was 4.l9 per
cent. or. assuming that tho roads were
entitled 10 earn z per cent, there was
in the period mentioned Sl.S0O.OO0,ooO
in , ital on which no income was
earned. The total capital m that
period was 70.000,0Oo, Mr. Schaf'
said. 60,
Mr.. SchaT also asserted that while
IN previous wears the roads were able
70 borrow money on 3 Z to per
cent basis, many Of them now had 10
nav per cent and more
Mr.. FELTON, asserted that the need OF
Western roads for more revenue and q
more liberal treatment by the public
was imperative.
"a good illustration Of the expense
Of conducting our passenger business
he said. ais seen IN the cost Of the new
terminal O.. Kansas City. There was
strong demand there for a new passen'
ger station. and one was needed. One
could have been built on the old loca'
ton for possibly $2,000,000 or $1,000
600. but that would not have provided
facilities far enough in the future, anC
q better location was necessary.
First estimates ran TO Sl5OOO.OOO
but with construction Of the station
came reuuirements for viGducts anc
subwaye. and soon the estimate was
s25OO0OOO The final cost VIII be $50
600 900 This. ike the one proJecteC
AZ St. Paul, was matter OF local PRIDE
The public wants railway stations thai
will add TO the beauty Of the city. Blu
g all means burden for the railroads
without more income. In fact, II means
greater expense. for the old stations
could be maintained more cheap!y thar
The new ones"