The Topeka state journal., 1916-07-26
RAILROAD NEWS
AFTER D. & R. G.
Control May Pass to GOulds st
TOday'S Conference.
Nav Reach Armistice in New
Railroad War.

New York, July 26.-Contro1 of the
Denver & Rio Grande railroad and its
outlet lines to the Pacific southwest,
by the Jay Gould estate, may be
clinched at a conference in George ].
Gould's office here today.
This meeting is the result of young
war between railroad magnates over
the control and development of the
Missouri Pacific system and the D. &
R. G. system, the ownership of the
lines and their subsidiaries being badly
mixed up between the two groups.
The Jay Gould estate owns a con-
trolling interest in the Texas & Pacific
and International & Great Northern
railroads. These two roads really are
tap lines into middle-south territory
for the Missouri Pacific railroad, but
the group of bankers controlling the
Missouri Pacific cannot use them as
such because the Gould estate con-
trolls them.
Interests Much Mixed.
On the other hand, the bankers con-
trolling the Missouri Pacific also con-
troll the Western Pacific, tap-line
into southwestern and Pacific coast
territory for the Denver & Rio Grande,
and they won't let the Gould con-
trolled D. & R. G. develop southwest
ward. The Missouri Pacific owners
also hold a big block of D. & r. G.
stock.
The Missouri Pacific control has
been trying to freeze the Goulds out
of the ID. & r. G.. so the D. & R. G.
and the Missouri Pacific could be
merged and the Pacific coast territory
tapped.
The new plan, given favorable con-
sideration at a preliminary meeting
at Goulds office here a couple of
weeks ago and to be definitely settled
some way or another today, is to have
the Gould estate give the Missouri
Pacific its interest in the Texas & Pa
cltic and international & Great North
ern so the Missouri Pacific can develop
in the middle-south, while the Goulds
are to receive in exchange the Mis-
souri, Pacific's interest in the Western
Pacific and d. & r. G.. so the D. & r.
G. can tap the southwest territory.
The Railroad Crisis.
Never has the railroad situation in
this country been more uncertain than
it is at the present time. In Farm and
Fireside is the following interesting
Railroad engineers firemen, con-
ductors. and brakemen are demanding
readjustment of their working hours
and pay schedules to the basis of an
eight-hour day, with time and a half
for overtime. 1t is calculated that If
their demands are granted it will add
about 500, GO0,0 900 annually to the paw
roll of the railroads
There has been decidedly differ
ent attitude of the public mind toward
this demand than toward similar ones
in the past. The feeling is strong that
the men have threatened to tie UP the
country's business at a critical juno
ture in order to force exorbitant con-
cessions.
These four classes of employees get
high wages, and have been getting in
creases steadily for many years. They
urge that the cost of living is higher,
so wages must go up with it. There is
some justice in that. But in 1918 en-
gineers the country over were getting
an average of $500 a day. If they
about the section hands. who were
getting an average of $1.58 a day.
Wouldn't they seem to need an in
crease, too?
Conductors were getting an aver
age daily wage of $4.39 If they must
have 25 or 80 per cent more in order
to live, how about the telegraph oper-
ators and dispatchers, who were get
ing only s2.52 per day?
There are more trackmen on the
railroads than there are engineers,
conductors, brakemen and firemen.
The total number of employees of the
railroads in 1914 was calculated at
LILO, 600. Just about one-sixth of
these are among the four groups now
demanding big increase of wages.
This lucky one-sixth have been getting
the lions share of wage consideration
for many years"
The Railway Situation.
Operating income (Which means
earnings after paying expenses and
taxes)," says a western paper, of all
the railroads of the United States in
April of this year was 42.3 per cent
more than in April, 1915, and 66 per
cent more than in April, 1914 This
record was made out of total operating
revenues of 2O.8 per cent grea ter than
a year ago and 17.8 per cent greater
than two years ago.
THE figures may not mean much to
a casual reader, but to one familiar
with railroad and trade statistics they
have great significance. The increase
of 2O.S per cent in operating revenues
reflects the expansion of traffic NOV
ing, IN consequence of the active trade
and industry of the country. This
gain in itself is quite remarkable, ex-
tending as it does to all parts of the
country and considering the stable
character of railroad traffic
The fact that the railroads could
show an increase of 42.3 per cent in
net earnings out Of gain of 2e8 per
cent in gross receipts tells a story of
ettclent management exceeding any
previous experience of rhe railroads in
times of expanding traffic. Hereto
fore huge traffic generally has been
accompanied by a lack of efficiency
because of blockaded yards, delayed
movement and consequent relative in
| crease in costs.