Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1915-03-05
"CITY BEAUTIFUL"
DEMANDS PULLING
ROADS NEAR RUIN
Forty.0ne Western Carriers, Asking
Ten Millions More Yearly to
Save Credit, Blame Esthetio
Craving Partly.
TOWNS WANT FINE STATIONS
Elaborate Passenger Depots and
Freight Terminals Aid in Cut
ting Profit.
THoRNE IN SHIPPERS PLEA

CHICAGO, March 4.-Contending
that the margin between their in
come and expenses was becoming so
small as seriously to affect their
credit, forty-one western railroads
began before Commissioner w. M.
Daniels here today their argument
in their application to the Interstate
Commerce commission for an in
crease in freight rates, which it was
said would add $4,000, 900 to their
annual revenue.
The argument was Of general
character. Later the rates on COM
modities such as grain, live stock,
packing house products, coal and
fruits and vegetables, are to be con-
Eidered in detail.
The chief contentious OF the roads. as
outlined by c. e. Schaff, president of the
Missouri, Kansas & Texas road; s. M.
Felton, president of the Chicago & Great
Western. and C. G. Wright, counsel for
the Chicago & Northwestern road, were:
That all the railroads should be per-
united to charge enough to enable them
20 pay at least per cent dividends, with
n margin over that for surplus; that at
present many Of the roads are not able to
pay moro than 8 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 termi-
nails to enhance the beauty of cities.
such as Kansas City, Mo-, and st.
Paul Mimi, has placed burdens on the
railroads without increasing their rev
enues.
That increased equipment, higher
wages and restrictive legislation have
greatly increased the expenses of the
roads involved.
Thorne's Statement.
After opposing the demands of the roads
on the ground that what they asked for
would amount not to $10.0000 900. but TO
81, 100000 or 100000 a year. Clifford
IThorne. who appeared as leading counsel
for the shippers, asked Mr.. Schaff IL IL
were not merely on account of the Euro
pean war that the roads were asking in
creases. Mr.. Schaff said he could not
recall any increased expenses ON account
Of the war. 4
What has happened since the war
commenced that has reduced your deve-
nussg'' asked Mr.. Thorne.
There has been a depression in busi.
ness replied Mr.. Schaff. The witness
then said it was not because of the wal
the rates were asked. but because of gen
eral business conditions since 1908. Ir
The last seven years the average net In.
come on the forty-one roads. he said. wai
a.1e per cent or. assuming that the road.
were entitled TO earn per cent, ther,
was In the period mentioned 81, 500. 600 0O
n capital on which no income was earned
Must Pay seven Per Cent.
The total capital in that period wal
tl,57o. 100000. said Mr. Schaff Mr.. schaff
also asserted that while in previous year.
The roads were able to borrow money OF
p sh to per cent basis. many OF then
now had to pay per cent and more
Mr.. FELTON, asserted that the need o
The western roads for more revnue anC
"a more liberal treatment by the public
WAS imperative. He said the roads should
not only be permitted a fair allowanc,
Tor maintenance and betterment, but the,
should be enabled to pay perN cen
dividends to stockholders.
"A good illustration of the expense o
conducting our passenger business" h,
said, is seen in the cost of the new
terminal at Kansas City. There was
strong demand there for a new passen
ger station and one was needed
First Estimates.
"One could have been built on the oil,
location for possibly 100000 or $1,000. .OOC
kContinued on Page Two, Column one