El Nuevo mexicano., 1917-06-21
PRESIDENT R|PLEYO SANTAFE SAID
ROAD EXPECTED TO, MAKE IS OR IS
PERCENT PROFIT DURING THE YEAR
Traffic World" Substantiates Story of Interview
Which Mr. Koontz Believes President Never
Made; Of Particular Interest in View of New
Mexico Hearing g@ eNlasts! @f4'ass a4g9se. aso

That President Ripley, of the A. T..
G. s. r. railway did state before the
Il. c. c. hearing in Washington early
in June that he believed that his rail-
way will make Is to 16 per cent profit
this year, is given on the authority Of
the Traffic World" a railroad publ.
cation of Chicago, in its issue Of June
16 received here.
The news is of especial interest
at this time i'm view of the refusal
to accept such a statement by j. r..
Koontz, general freight agent Of the
Santa Fe railway, when he was here
last week at the hearing Friday before
the state corporation commission.
the state corporation commission on
the railroads request for a Is per
cent ~intrastate freight rate increase.
When shown a clipping from a news
paper giving this statment as coming
from Mr.. Ripley. Mr.. Koontz said
here. ION the face of it, I'd say he
did not make it."
Former Assistant Attorney General
Harry s. Clancy, who is legal adviser
OF the state commission points out
that 1t was made plain by MI. Koontz
at the freight rate hearing before the
state commission last week that under
the Shreveport decision it will be
mandatory on state corporation COM
missions to make the intrastate in
crease conform to the interstate in
crease granted by the I. C. G. IL any
is granted. In other words If the l..
~ n sIaaIorac m 1E NOR Oanf tnnraaon
on interstate rates, New Mexico'sl com
mission would have no other course to
pursue than to grant a similar in
crease on ~intrastate rates; and II an
increase of 10 per cent is allowed,
New Mexico would have to allow 10
per cent. And If no increase is grant
ed by the I. C. c., none will be asked
on intrastate business.
Why a Higher Rate?
But this view of having the rulings
of the I. c. G.. work automatically on
intrastate business is sure to be
fought vigorously in the courts, it is
stated by lawyers here, especially now
that 1t appears the Santa Fe railways
president did admit that his road ex-
poets to make a profit Of Is to 16 per
cent this year.
What "Trafflc World" Says
The interesting account of the con-
irmation of the Ripley interview on
the big profits the Santa Fe railway
expects to make this year. as appear
ing in the Traffic World appeared
after the statement was made at the
hearing before the l. c. G. on the 10
per cent increase. The hearing in its
preliminary stage, came to an end on
the afternoon of June 8.
The Traffic World adds: Luther
M. Walter presented extracts from the
prophecies Of railroad presi-
dents in other advanced rate hearings.
He also made the point that the figures
for February, 1914, and February,
1917, were the worst eve put down in
the books and railroads, and necessar-
ly in the report they made to the COM
mission. He asked how it happened
that in the years mentioned, which
the years when large general
adpances we're demanded, the showing
Of the railroads were SO much worse
than in any other Februaries. He also
WdIlt6u W hiOW WHY ~ ShiA6o WoAoi
20 bad in those two F~ebruaries, 1t hap
pened that there YVES such a rapid re-
His intimation was strong
hat the February figures were doc
in each of the years mentioned
Tor the purposes of the cases.
president Ripley of the Santa Fee
was put on the stand IN June s by
he attorneys for the western lines to
how it came that for the fiscal
year 1916 that carrier had an unap-
ropriated surplus, mainly cash, OF
something like $43,0 900, 900. Mr.. Rip
ey said that the year had been a good
,ne, as everybody knew. The road
'ound that it could sell &c. 900, 900
worth of bonds to advantage, so 1t took
hem out of the treasury and market.
ID them for the payment of bills that
will fall due on July L. 1917. He said
hat the carrier had a quantity Of
,ills and obligations maturing on that
lay and naturally made provision to
meet them.
"You have been quoted as stating
he Santa Fe will make between is
md 16 per cent this year. suggested 4
fr. Walter. =
ayes, I believe I have |;
"You still believe you will make ;
hat much@
ayes, I do.' |;
"That's ALL said Walter, closing : :
le cross-examination.' =