Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-06-26
RAILROADS
ASK RATE INCREASE
OF FIFTEEN PER CENT
File Petition With Railroad
Commission Calling for Such
Minimum Advance in Intra-
state Freight Charges

| with the state railroad commission a
petition in which they ask that body to
allow them to put into effect on July l
a fiat increase of Is per cent in all Geor-
/ gia intrastate freight rates. the only ex-
| ceptions being in certain rates where
they ask for an increase of more than
10 per cent.
The railroad commission has set
/ the petition for a hearing on July Il, and
| will hear the arguments of the railroads
in support of the petition and the argu-
ments of shippers in opposition to the
petition.
The railroads base this extraordinary
request for an increase in freight rates
on what they claim TO be the extraordi-
nary necessities of an emergency.
| They represent that by reason Of
/ large increases in the wages of en-
ployes, and in the prices of fuel and
other materials and supplies, coupled
with which is the prospect of further In
creases, an emergency has been created
which requires that they be promptly af-
/ forded, by advance in their freight
| transportation charges, an increase of
earnings which will serve to Offset in
whole or in part these extraordinary ad-
ditions to their operating expenses and
| furnish some protection to their eff
/ ficiency and credit"
CONCERTED MOVEMENT.
AS is well known. the railroads of the
whole United States are now before the
| Interstate commerce commission In
Washington with a petition for a fat in
crease of Is per cent in all Interstate
/ freight rates. based on the same general
grounds set up in their Georgia petition
with regard to intrastate rates in this
state.
Also, the railroads generally have
gone before the various state commits
sions. or will go at an early date, with
petitions asking for a fiat increase of
Is per cent in all jntrastate rates.
In other words, the railroads through
out the country are now engaged in a
concerted movement to increase all
freight rates Is per cent, both on inter
state traffic and intrastate traffic, and in
all cases their justification for this ex
| traordinary demand is the claim that the
war has created an emergency in their
financial affairs.
Senator Hoke Smith, of Georgia, has
shown in the senate, in his discussions
| of a resolution introduced by him in
| that body which would require the inter-
state commerce commission to give full
and free hearings to all shippers before
acting on the interstate petition, that if
/ the railroads were granted a II per cent
/ fat increase in all interstate freight
rates, their revenues would be increa sed
/ in tine stupendous sum of nearly $780,
/ 10000 a year.
Should the railroads succeed in their
attempt to secure an increase of 10 per
/ cent in interstate rates, and on top of
this an increase of Is per cent in intra-
state rates, their grand total of increas-
ed revenue would run in the neighbor-
hood of s1.0OO,OOO 900 year. according
/ to some Atlanta shippers who have in
vestigated the subject
SHIPPERS DENY EMERGENCY.
In opposing the petition Of the rail-
roads of Georgia for a fiat increase of
/ Is per cent in Georgia interstate freight
rates, the shippers will deny that an
Emergency exists in the financial affairs
of the railroads operating in this state,
any more than the emergency growing
out of the high cost of living which
every concern and every individual must
now contend with.
They will contend that even if an
emergency did exist, of the extraordi-
nary nature claimed by the railroads,
/ il should be met by the railroads with
the very large surplus earnings which
they have been allowed to accumulate.
They will show that the rate-making
agencies of the government, both state
anu ACutEdlr dAAO" the AdilLOduS 10
charge such rates as will insure them
not only fair return upon investments,
but also. and in addition thereto, a sur
plus to provide for emergencies.
With regard to this surplus, the ship
pers will show that the railroads oper-
ating in Georgia now have on hand the
largest surplus in their history, by rea-
son of the extraordinarily large profits
arising from the traffic of 1916, which
. vx-sa- adj fadl he nc
year on record for all ra ilroads, and
especially for the railroads of the south
ern district
The shippers will show that the total
operating income of the Southern rail-
way for 1916 Cthe term operating in
come means net income after deducting
operating expenses and taXes). was
S21, ,OO5, which was an increase Of
| s7,6O4. $50. or sc per cent, over 1915. and
over 1914.
l.. & MS BIG EARNINGS.
The shippers will show that the total
operating income of the Louisville and
Nashville railroad for 1915 was S1S,265,-
| BOO, which was approximately so per
cent greater than the operating income
Of that road for 1914. and approximately
so per cent greater than its operating
income for 1915.
! Inc SuAppcIS viii SnO" lnaI the OPP
I Grating income of the Atlantic Coast
1 Line railroad for 1916 was greater than
any other previous year. being approx
mately 35 per cent greater than the op-
Grating income for 1915.
Moreover, the shippers will show that
the surplus of the Southern railroad
rose to s2S,24S,5s5 in 1916, which was
an increase OF more than 800 per cent
| since 1909, and an increase of more
than so per cent since 1915.
! They will show that the surplus laid
aside by the Louisville and Nashville
railroad in 1916 was s9,633,S49, which
was an amount, according to the ship
pers, enormously in excess of any pre-
"!ous year, being more than double that
reported for 1909, and about six times
as great as the surplus laid aside in
1914"
| They will show that the surplus of
| the Atlantic Coast Line railroad in
creased from S11,249,326 in 1909 to S33,-
sS3,s2s IN 1916. and that the profit and
loss surplus of this road has grown so
enormously IN recent years that il is
now three times what IL was in 1909"
The shippers will show that the ex-
! traOrdinary prosperity enjoyed by the
! above mentioned lines of railroads OPP
| Grating in Georgia is typical of the fin
! ancial condition of all railroads in this
Il state They will produce figures taken
/ - ~E A.