The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-11-05
RAILROADS MUST

Continued from Page one.l
cilities and strengthening ''imperilled
railroad credit" be neglected.
Decision to reopen the case after an
interval of four months was an
nounced by the commission in re-
cent letter to George Stuart Patter-
son. chief counsel for the roads. AL
tho the hearing affects Immediately
only those roads operating in the east,
the result is expected to have a bear
ing on rates turnout the country.
Daily earrings will continue for sew
eraIy weeks. it is believed, with pros
poets that disposition of the case will
come before the end of the year.
Other railroad representatives who
were on hand prepared to make gem
eral statements when the hearing be-
gan were Alfred H. Smith of the New
York Central, James H. Hustis of the
Boston & Maine. and Frederick D.
Underwood of the Erie.
Costs Up go Million.
When in May the eastern carriers
asked for a 5 per cent rate increase
thew estimated that war time prices
of labor and materials would increase
their operating charges by S235, OOO,-
900. Later compilations presented to-
dav indicate an increase of 1910 OOO,-
600 based on the 1915 value of bust
ness while increased revenues. from
rate advances since the first or the
wear tOtdl S9f.UOOsUOU.a1-1 tAS iHNA OeiSc
operating charges are apporuoned as
follows:
Coal. S7s.00O,OOO: wages. $1O2, 00O,-
900; materials. $50. 900, 900.
Attorney Patterson declared that
while gross earnings for the first nine
months of the present year had risen
$123.7S9.OOO. a loss of S57, 291, 900 res
suited from a corresponding advance
of S16s.431, 900 in expenses.
President Rea of the Pennsylvania
predicated his plea for an advance on
the following existing difficulties of
the roads:
Continuous increases in the cost of
labor, fuel. supplies, taxes and of OBJ
tanning new capital.
Shortage of Labor and Materials.
Inability to secure and retain eff
ficient labor. Curtailment of main
tenance expenses. which curtailment is
due in part to inability to secure nee
essary labor and materials
Decrease in net operating income.
Notwithstanding large increase IN OPP
Grating revenues in property invest
ment, in carload and trainload.
Reduction in surplus with conse-
'quent effect upon the credit of the
carriers.
Inability to secure new capital by
the issue of stock, with the consequent
weakening effect upon the financial
structure.
Inability to provide improvements
and facilities. not only essential for
the traffic of today, but equally es-
sential for the traffic of the future"
Coal 100 Per Cent Higher.
No prospect of lower coal costs is
to be found in the governments price
fixing program on fuel continued Mr..
Rea.
THE tentative price of $2.45 Rer ton
fixed by the government" he said lis
over 100 per cent higher than the
in 1916: five cents more than the1
average price paid April l to Septem-
Der 80 and 20 cents more than the
price now paid under existing con-
tracts"
He gave the annual coal consllmp-
ton of the Pennsylvania system 49,
335,4S tons and stated that the
average cost per ton from April I to
September 80 this year had been $40
or Sill per ton more than last year.
Increased Wage Big Item.
In addition to the wage advance
granted, trainnen under the terms of
the Adamson law, Mr.. Rea pointed out
that increased cost of labor had swol-
$13, 100000 a year exclusive of in
creases given the trainmen.
In spite of these wage increases the
roads are meeting with constant diff
ficulty in retaining workers, Mr.. Rea.
declared.
'If the transportation machine
breaks down thru inability to secure
efficient labor by reason of made
quate wage rates, it has direct bear
ing on the termination of the was." he
said.