Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-03-06
Experts Show Why Freight
Rates Should Be Advanced
in Order to Give Credit to
Transportation Companies,
FOOLISH STATEMENTS
CAUSE OF PREJUDICE
Hostile Legislation in States
and Acts Of Corporation
Commissions Are Severely
Condemned,


! Chicago, March Credit of rail
roads as reflected in their ability to
I obtain new capital was discussed be-
. fore Interstate Commerce Commis-
! sioner w NJ. Daniels today in the pc
/ titiOn of iorty-onc western railroads
for permission to increase freight
rates. Festus J. Wade. a banker Of
st. Louis, testified That owing to their
poor earnings western railroads were
/ unable to obtain money except on
high rate Of interest out of proper
/ tion to that asked from industrial OPP
erations
/ ''To what de You attribute the
| financial depression from which the
/ railroads are suffering" asked Lu-
/ ther Walker counsel for the packing
interests who are opposing the in
creases
Causes of Depression.
II attribute it, said Mr.. Wade.
largely 20 the attacks of state rail-
I way commissions in reducing the rail-
roads revenue, to onerous acts by
state legislatures and TO wild and OK
/ travagant charges against railroads.
If business conditions throughout
/ the country are poor now do you
! think it would hasten prosperity to
tax the shippers
IT would help hasten prosperity to
restore the credit of tho railroads
/ Many shippers who are now suffer
ing from business depression would be
glad to pay higher rates to improve
business"
The witness said he considered the
influence Of the Interstate Commerce
commission on railroads was good
that by any state commissions and
legislatures handicapped the roads.
Wrong Sort of Question
Don't you think 1t is rather mis-
/ management and the selling of blue
sky and water that has hurt the roads
more than state commissioner asked
/ Everett Jennings. counsel for the IL
linois public utilities commission
/ ITS just such wild statements as
YOU have made that has hurt their
credit, replied Mr. Wade
Willis L. Reed, of Nebraska, want
ed to know if Mr. Wade ever reau IL
book published twenty-five years ago
in which various financial depres-
sions had been predicted and whether
; il was not well known in financial cir
cles that periods Of business depres-
sion ana prosperity came with staff
| ling regularity and were known in
advance.
II never heard of such thing,
said Mr.. Wade.
Country Is Cautions.
Asserting he had much experience
with the credits Of southwest roads,
Mr. Wade said that the roads ability
to obtain money on bonds in recent
years was steadily decreasing, that
"While the country was flooded with
money the public had grown reluc-
/ tant TO buy securities and that only
roads in exceptionally good stand
ing could obtain funds at normal
rates
BENJAMIN f. Bush, president Of the
Missouri Pacific road, said his lines
would be unable to keep pace with the
pubic's demands for increased eff
cheney unless higher freight rates
were permitted
we believe" he said, "the bad
economic conditions which have pre-
vailed for the last sixteen months
with the attendant depression Of gem
eral business have been due more to
the failure Of the railroads to earn
adequate revenues than 10 any other
cause, The situation may have been
made more acute by the European
war; but business depression was
| upon us with fun force prior to that
Railroads Help Business
when the railroads are prosperous
they consume from forty 10 fifty per
cent Of the basic industrial factors
and thus initiate a movement in busi-
ness which quickly pervades all indus
tries and trades. When their rcvc-
nues are Inadequate, they are obliged
! in self-preservation TO retrench,
'Nine industries in St Louis de
pendent on railroads have been
obliged 10 curtail their forces some
10000 men and their payrolls on that
account are $5S8,000 less a month
than in times Of normal business. The
loss in wages Of employees Of those
nine St Louis industries would aggre-
gate $1,000, 00e a year. The time has
come when it Is most vital not only
to the carriers interest but to the in
dustrial and commercial welfare Of
the country that the desired advances
should be allowed