New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-26
Dividends Not
At Stake in
Rate Hearings
Large Increase in Revenues
Admitted by Officials of
Western Roads

Washington, May %. - Counsel for
shippers in cross-examining Western
railroad officials to-day at the Inter
state Commerce Commissions hearings
on the carriers petition for a Is per
cent increase in freight rates, sought
roads could meet existing conditions
without additional revenue from freight
tariffs. They also undertook to show
the commission that economies could
be affected in railroad operations to in
crease revenues.
B. l.. Winchell, director Of traffic OF
the Union Pacific, in response to ques-
tons. said his company paid an extra
dividend of . per cent year. The
examining attorney asked whether it
was n fact so much money had been
made by the Union Pacific that the
company had hard time disposing OF
its earnings and had nothing else TO
do with its cash but spend it on lux
uTlouo OFFICES III a''N '''''s
81 have never been with line where
dollar was more carefully conserved,
Mr. Winchell replied.
The Offices in New York, he said,
we're not what might be termed lux
urious, but they were equipped at a
cost of $4,000. and at that price were
considered good investment from the
standpoint of advertising and good
business.
Expects TO Remain Solvent
In response to further questioning
Mr.. Winchel said he considered the
establishment of union ticket Offices
in the big cities of the country would
effect economy. lie agreed with the
examining attorney that great Savings
could be made if the railroads of the
country operated under one directing
head.
''If you do not get this Is per cent
advance will the Union Pacific still be
able TO carry on business as usual and
give the same service?' asked the at
torney.
81 should say We would remain sol
vent for some time" replied the wit
ness with smile.
Santa Fe's Position
From A. l.. Conrad assistant general
auditor. of the Santa Fe, the examining
attorney drew the statement that dur
ing the first three months of 1917 the
systems revenues increased approx
mately S4.000,000 over a similar period
in 1916. and that the increase in operat-
ing expenses was about S2,O00,OOO.
AT that rate" said the attorney, FOR
every dollar Of increase in expenses
YOUR revenues have increased 81. Is
there any danger of the Santa Fe going
into the hands of receiver"
"Not under the conditions of those
months" the witness replied. Further
questions were designed TO show the
commission that the Santa Fe has ex-
perienced no trouble in securing money.
Frisco Reorganization Explained
w. B. Biddle, president OF the st.
Louis e. San Francisco. was cross-ex-
amined principally regarding the finan-
ces of that system and its reorganlZa-
ton. He said it was true that in the
reorganization the road had increased
its capitalization and reduced its prop
erty, but explained that many old liza
bilities had been eliminated in the
operation and that the new capitaliza-
ton represented the actual value of
the road. Counsel questioning Mr.. Bid
die emphasized the point that in the
reorganization the road had paid out
100000 without increasing the ply
steal property and that the wage in
creases due to the Adamson law on the
Frisco amounted to Sl,000,000 a year.
Northwestern's Business Increasing
L. II. Ashton. president of the Chi
cago g. Northwestern, said his road, IN
view of the existing situation. would
have felt justified in asking the COM
for immediate relief even il it
had not Joined all the carriers in ask
ing for general 10 per cent increase
in rates. He gave figures to show that
the roads net operating revenue was
more than million dollars less during
the first three months of 1917 than in
the corresponding period of last year.
II was true that the volume of BUSH
ness on his road was constantly in
creasing, but he was unable to give the
percentage. He thought it possible
that. in view of the conditions, the Chi
cago e. Northwestern might have to
call upon its surplus to pay dividends,
hut he anticipated no reduction in divi-
dends, saying they would not be re-
duced If he could help il.
Cross-examination of the railroad
officials was concluded to-day. To-mor-
rows hearings will be given over TO
representatives of special shipping in
terests.