Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-07-01

lily WORLD. SUNDAY. il
crease H. efficiency IN train move
Ineni. accomplished by heavy eIpen-
ohrr"s. thru which more tons o.
. freight Per locomotive were hau'eG.
. vas disaster for the carriers avoided.
/ and now sffC-<Ts are being m ade sue
I cesEfI4!T. tr some states 10 limit rrali.
length. The item q taxes per mile
/ u raiiroad alone increased from EzuJ
IN 1907 20 f5I3 in 1914, OF iss per
cent
Increased Railroad Expense.
The estimate of the Railway age
T Gazette FOR Increased rail~zy expenses
for the current calendar year. over the
Is al year ending June 80. 1915. tn
cllfss the following items:
& Train service employee
wages idEs 70 AdamsOn
acD ....-..-. ........ $50. 90s 8Gs
Cth@r employees wages $1,000, 900
Z Fle! increase IN price,
7sc 4 tom -.......... IaO.650.0G5
Taxes Gacreas=d Is per
cent? ... 2. coo 600
R4lls> C5.s00.s00 tons IN.
crease IN Tr.ce a tor
ilgl .----.--.-.... 31.10G. go
Locouotiycs $500 a,
iunr=ase IA price OF 50
Passenger cars C5.1C0 az
increase N price ot 50
Ter cent .... - COO coo
Freizh, cars. Ci-5.0lJ at
Increase IN price u 30
per cent? .--......... I05.0so.o09
s4i7.qoo.o60
To meet these Increased charges.
petitions have been filed with the In
tsrstate tsornrneTce commission fox
horizontal tnc-ezses In freight ra;e-.
averaging 0tout - per cent upon the
present scale. which. !t is estimated.
WI! Increase 70 eLCes over 1900 egu.-
goo While some minor rate Increases
have hee-I granted b. tho c1rrmls-
SION, -orsi4sration q these PROPOSED
increases .s r@ing given by The com
mission. and the filings OF the rail-
roads have been allowed % take f.
feet July I. unless denied or sus-
PENDED IS ne result of the iuvestiga-
ton now under way.
For Rate Increases.
The pra q the railroads IS thai
these rate Increases are necessary not
only 20 sustain their credit and 20
maintain their operating efficiency.
Ihsy urge that advantage 10 the ship
per In having transportation facilities
adequate 20 MS neeE1. ard TO the na-
ZION in having -a!iroad prepared me- I
f1r any enler gercy. demands favor 7
a7le action on these petitions
Hhe cost 70 business interests gen
orally Of freight congestion has been T
FAR more than a rate charge sufficient [
20 maintain adequate seryice Public I
Die"
ever charge -s necessary for the main I
tenance Of these properties. with re4-
soua1le investment returns. shall be P
approved In azaum...g 20 reEul1r- .
both the income and the outzo OF the o
c1rriers. the public has also ssslirned 4
the burden Of providing adequate .
transpc ration. II the railroads az 4
20 keep step with the CONNER. iai de-
reiopmeu- Of the country they must I
be Permitted A larger share Ot tn- .
country's prosperity than Is reflectea 1
IN present earnings
ArtificiaI Limitation on Profits.
Investment faith or confidence ~
railroad credit mas been weakened -
not because belief IN the wisdom and 4
Initiative II railroad MANAGERS has &c
cllned, but bcCa Use the average m
vesfor views with apprehension tue /
arbitrary and e1acting lengths 10 .
which public regulation Of railroads I
las been stretched. and it's intert~-
ence with the Judgment Of railroad
executives in regard 10 details Of man
aEcment and operation. Investors uy
not care 20 coufl5e IN a system OF res
ulation which places a bewilder.n2
artificial Limitation on the profits OF
the carriers and !ndiscriminately adds
"a their coEt II operation. No system
or regulation can regulate railroads
adequately which does not take inr1
confederation this question Of rail
read credit. Service depends upon
facilities. IN turn. upon credit. Weas-
on or remove the credit the wnoie
structure falls.
Subjected 70 heavy capital e1pendi-
lures. increased taxation. burden SOM. n
regulation. constantly rising operating n
costs and substantial reductions ni
rates bv numerous states our rail II
roads find the sale Of their stocks
most difficult and even borrowing
possible only at high rates. \
The shrinka ses IN the prices Of rep
resentative railroad stocks clear in
dicate the loss Of favor for such s.,-
curities among investors. and indicate
also tho weakened credit OF the car
riers, Failing to finance their wants
thru sales Of stock. the railroads havs
been com polled TO raise the money
and notes. In ether words the rail-
road industry has had 70 transact al
most all Of its new business on Dor
rowed money, which has Increased
fixed charges and diminished the mar
gin Of safety-the annual surplus Of
net income over and above fixed
Is the fundamental
element of security and attractlyeness
In railroad bonds.
Funded Debt High.
II IL n striking fact that not n single
share Of new railroad stock was listed |
on the New York stock exchange or
cold to the public for new railroad
building last year. In broad terms. |
the present debt Of the railways ex-
cocds 10000. 900, 600 while their |
stocks amount to over $4,000. 900, 600.
On this presentation Il is clear thar
the railroads are pulling n laborInr
oar when they attempt to borrow per-
mannent more than $40 for every s6 |
realized thru sales OF stock. Unless
future railroad financing can be done
more with stock and less with bonds.
the financial position OF the railroads