South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-01-07
RAILROADS SEEKING
HALF CENT RAISE
AS A REAL NEED
Representatives Of Lines 0p-
Grating in Indiana Tell South
Blenders Roads Have Lost IL
Millions in LAST Year.

For the first time since a statewide
movement upon the part OF Indiana
railroads to secure an increased pas
Eenger service rate was started. South
Bend citizens in general and the
Chamber of Commerce in particular
were offered Wednesday night an OPP
portunity 10 consider the matter at
first hand.
Joseph S. Hall Of Indianapolis, gen.
eraI passenger agent of the Lake Erie
and Western railroad system, and l..
A. Robson Of Cleveland, general pas
Eenger agent Of the New York Central
lines, were the principal speakers at
"a meeting Of local railroad men and
members Of the Chamber of Com
merce held last night in the chamber
rooms.
The statement that Indiana rail-
roads had lost SIP, 227.36 in the fiscal
year through the reduction in its
mileage rate from three cents 10 two
cents, was the first argument hurled
at the chamber members. That fact
was used as the basis of Mr.. Hail
talk. accompanied by other arguments
of more or less force which tended 10
show that increased rate was medium
demanded not only by the railroads
but by the business men themselves
of the largest cities in the country.
Two and "A Half Cents.
The rate suggested in all talks Of
the evening and the one that viii
satisfy it's opponents, according TO the
suggestions of last night, Is one OF
two and One-half cents per mile. 1t
is in general, said Mr.. Hail, upon this
showing that Indiana railroads, FOL
lowing only what can be taken as
direct suggestion from the interstate
commerce commission, are planning
10 come before the 1915 state iegis-
lature and ask that body TO repeal its
act of 1907 and insert in is stead
law fixing the rate at two and one
half cents per mile.
Continuing his arguments, Mr..
Hall said
ION every hand there has been in
creased expense. which brought with
a. increased comfort and convenience
for the public, but which did not add
one cent TO the revenue derived from
passenger service. Here, IN itself,
was an extremely difficult condition of
affairs. And when il IS considered
that an arbitrary reduction OF 50 10
per cent in income was also 10 be
uontended with, the position in which
the railroads now find themselves
should not he surprising.
1T is n matter of common knoWl-
edge among those informed that the
net earnings from passenger opera
ton OF railway lines i'm the United
States are not sufficient to pay one
per cent on the capital invested In that
service.
Lost Over Twelve Millions
Seventeen of the principal rail
roads which operate in the state OF
Indiana had invested in their prop
critics during the last fiscal year,
eight hundred seventy-t1Ve million,
six hundred nine thousand, seven nun
dred thiTty-fiVe dollars. During that
wear their gross receipts were Slb5,-
19O.337. and operating expenses, taxes
and interest were $175.4lI,lO6. The
net loss was $12,227,369.
Here. in this loss of more than
twelve millions of dollars in one year,
is the condition which has resulted
from reduced income and higher
costs The railroads are not asking
that the rate be restored 10 three
cents a mile. We are asking merely
fora partial restoration.
1T is fact that the railroads are
the biggest buyers of supplies N me
United states and their welfare is
therefore closely related TO the public
welfare IL is obvious that forced by
reduced revenues and increased eX-
penses. the railroads were forced 10
curtail their expenses in every posi-
bile way This led naturally To the
reduction I'm the number of employees,
TO the purchasing of supplies in small
er quantities in fact TO the suspen-
sion OF every activity not indispensable
TO actual service. Thus. unwilllngly,
the railroads have seen their own dill
ficuIties extended into other fields of
business and industry. the effect be-
ing unquestionably. To contribute
measurably TO the general condition
of business depression.
Would Keep Business.
~ efou fharafpra which will npr-
nit the railroads 10 renew and in
crease their activities, seems 10 as
sure definite progress in restoring
business to a better basis.
other men who were present at
the meeting were +. Z. Millspaugh
of St Louis. assistant general pas
senger agent OF the Nandaha lines; j.
u. Mcdonald of Chicago, assistant
passenger agent of the Nindalia lines;
ID. Mcdonald OF Chicago. general
passenger agent of the Grand Trunk;
l.. w Landman, general passenger
agent OF the Michigan lines; and
Frank Wilson. general superintendent
OF the New York Central lines.
Favor Proposition.
Upon the subject of increased rates,
lntu- men who spoke declared them
selves favorable 10 the project. ID. l..
Guilfoyle OF the Standard oil Co, ask
ed that the Chamber OF Commerce
take immaculate dcliou III tltS iidNtCi
asserting that local industry and trade
as a whole would in the end be bene
fitted by the change demanded IN the
legislative acts OF the state
G. u. Emmons treated the subject
similarly as did George \. Robert
son. Mayor Fred Keller arrived late
hut made a short talk in which he
stated that the local chamber was
capable Of handling the matter to
the best interest of the city. and that
ne hoped il would take early action
in the matter. Others expressed them
selves ia a similar manner.
THE MOST DELIGHTFULLY."- At
TRACTINE PLAN EVER DE
NISED TO SAVE MONEY.