The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-07-31

Amount Asked
! In presenting their applications for
freight rate increase the railroads
contended before the Interstate Com
merce commission that $1,017,000,O0O
was necessary to advance their In
come to the six per cent basis per-
mitted by the new transportation act.
Shippers and state commissions gem
orally agreed that some advances
were necessary, but they opposed
both the total and the method OF ap-
plication.
Passenger rates, the carriers pro-
posed, would be left unchanged and
their program of advances, applica-
BILE throughout the, country, did no.
take into account any wage increases
made by the railroad labor board.
The advances as proposed before
new petitions were filed after the
wage awards, were:
Eastern roads, 304 per cent, to
yield an advance in all revenues OF
21.1 per cent, or $544,000,O 900.
Western roads: 23.9 per cent to ad-
vance all revenues II per cent or
$352, $4,000.
Southern roads: 30.6 per cent to
provide POI per cent larger revenue,
Or $t2o,770, 900.
Apart from these advances, 80
roads in the southwest asked sep
arate treatment from the western
classification, and a rate increase OF
32S per cent. Nv
4 valuationN Fixed
An estimated valuation of s20,61G,-
100000 placed on the transportation
systems by their owners was ques-
toned by both shippers and state
utility commissions, who complained
that "book value" was unreliable,
while the. carriers contended that
their figures were conservative, es.
pecially because of rising cost Of ma
terials and equipment. Increases in
passenger rates, and flat freight in.
creases instead of the percentage ad-
vances, also were advocated by ship
pers to equalize the burden of any
advance.
Setting out the necessity for the
increase, the railroads claimed that
the net income of all of the country's
roads fell from $1,O56, 100000 in 1916
to $51O,OOO,OO0 in 1919, while their in
vestment was increased more than
$2,OOO,OOO,OOO Operating expenses
the roads said, have increased 99.1
percent since 1916, and revenues 36.37
percent. Operating expenses, it was
added, are now SO percent of the rev.
enues, against 68 percent in 1916.
Railroad Agreement
Arguing for the increases, the rail
road executives said the one billion
dollars Of added revenues was neces-
sary. if the roads were to handle the
nations commerce satisfactorily.
They contended that savings prom ,
ised by them could not be effected at
once because the roads were not re-
turned to them in the same condi-
tions as they were when taken over
and because of unsolved labor diff
iculties.
Clifford Thorne, of Chicago, repre-
senting shippers, recommended to the
commission that the roads be unified
for operation as they were in 1871,
declaring that only in this way could
the roads solve the existing transpor-
tation problem.
Mr.. Thorne also argued that the
rate advances asked were excessive as
the carriers had not made any pro-
vision for more efficient operation pr
for decreases in the cost Of materials.
He also argued that the companies
set too high value on their prop
critics and that they were capitalizing
land granted them by federal and
state. governments without cost and
asking the people to forever pay tax
on these free gifts