Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1917-11-20
Companies Want Pending
Rate Boosts and Others

ROADS 1Or q 10 per CeAL az ehSS ~
freight rates, involving $5S,OO0,OOO OF
proposed increased railway revenue
annually, was reached today when
the Interstate Commerce commission
heard closing arguments OF counsel:
The commission allowed each side
two and a quarter hours to present
arguments.
, Inadequacy Of wartime revenues OF
the nations railroads is no longer q
purely economic problem, but a vital
question Of national defense, George
Stuart Patterson, counsel for the
eastern roads, told the commission in
his closing argument for the carriers.
ASKS MORE CHANGES.
He asked for a sweeping readjust-
ment of prevailing rates to allow the
roads to meet soaring operating costs
and serve more efficiently the trans
portation needs of the nation in the
present emergency.
An increase of $97,000,000 produced
BY rate increases granted by the COM
mission earlier in the year, taken in
conjunction with the supplemental ad-
vance now asked, Mr.. Patterson said,
would give total of $155, 700, 900 or
little more than half the advance OF
SITS ,0O0,0 900 in operating expenses.
As a bearing must be had for further
Increases he gave notice that appli-
cation will be made by eastern car
riers for permission to file tariffs
making such additional increases.
OUTLINES DIFFICULTIES.
Dominant difficulties of the car
riers as outlined by Mr.. Patterson
are:
Continuous decline in net op-
Grating income, accompanied by
steadily mounting operating costs;
naked shortage in the labor sup
ply available for railroad work;
existence of deferred mainten-
ance when heavy war time traffic
requires the highest standard pos
sible and inability to raise new
capital by issuance of stock with
4 resultant impairment OF the
carriers credit
MUST BID FOR LABOR.
"As the carriers are called upon"
said Mr.. Patterson, ito meet competf
ton Of labor with industries whose
prices are regulated or unregulated,
or to meet competition Of labor with
the government itself the available
supply Of labor will decrease and its
price will rise. And unless the gov
eminent is prepared not only to con-
script labor for the railroads, but also
to limit its wage we must assume that
the present cost of labor, measured
BY wage and efficiency, will not de-
crease"
Coal bills of the eastern railroads, |
he said, had been increased by mil
lions and many roads were buying it
for less than the price fixed by the
This and the excep- /
tional rise in the cost of materials i
we're making 1t increasingly difficult |
Tor the railroads to provide main
.enance and up-keep.
FORECASTS BIG LOSS.
He estimated that in 1917 the east
IN roads will show loss of {
81, 000, 900 in net operating income
lespite an increase of $161, 100000 in
otal operating revenues. This he
,tated. would represent return Of J
- on investments, which is less, he i
aid than the amount the commission
n 1914 found to be too small for pub
&c interest.
Shippers representatives stated
hey were not impressed with the rail-
pads plea of being in serious finan- :,
Hal straits and contended that every |
BUSINESS was feeling the effects of the
var, many to their disadvantage. L.
;. Boyle, representing the National
lumber Manufacturers association
aid that while lumber shippers be-
ieved the rates unwarranted, they I'M
lesttattngly would submit to increas-
d charges II the commission believed
he advance was for the best interest
4 the country in prosecution of the