St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1920-05-29
ASSOCIATION OF
COMMERCE AT
DINNER TALKS
HIGHER RATE
Mr.. Farris, of N. O. G.. N.
Host to Merchants of
Covington.
FREIGHT RATES
TO BE RAISED
Tells Why It Is Necessary
and Gets Approval of
the Association.

| Mr.. w. E. Farris, general manager
of the N. o. G. N Railorad, was
both host and guest of the Covington
| Association of Commerce at a din
ner given at Gabes Tavern, Tuesday.
There were present: E. F. Webb,
| f. P 'Marsolan, M. p. Planche, N. H.
| FitzSimons, R. H. White, Fred. d.
He ntz, J. H. Warner, w. R. Esscn,
Leon Hebert, H. A Mackie, C. II.
Sheffield, A. R. Smith, w. H. Kent
eel, L. L. Morgan, Karl Treen, D. H.
! Mason.
The dinner was given by Mr.. Far
ris for the purpose of discussing the
contemplated increase in freight
rates. This increase is now being
considered all over the country. In
vestigation of the financial condition
of the railroads shows the absolute
necessity of in some manner increas-
| ing the operating income of the
roads. Mr.. Farris has shown a dis
position to consult and cooperate
with the patrons along the line of his
road and to do all that can be done
to build up the country that feeds it,
Regardless of any personal cOnsid-
~eration in the matter, it is sound
business principle that he could not
afford to overlook. But as we have
said, Mr.. Farris's attitude toward
Covington is very friendly and en-
couraging.
AS the increase in income has be-
come a necessity hardly disputed by
any one, the principal discussion was
whether it would be best to increase
passenger rates or freight rates.
The general opinion seemed to be
that an increase in freight rates
would distribute the burden more
evenly and adequately, as the cost
would be proportionately attached to
every article sold, used and consum-
ed, thereby dividing it among all
the people in such small amounts
that it would hardly be felt, while if
the increase was placed on passenger
traffic it would be borne by compar-
atively a few.
Mr.. Farris read some figures show
ing the necessity and reasonableness
of the request for increased rates;
$120, 100000 is required in 1ncreas'
ed operating income to allow the
railroads to earn the not more than
six per cent allowed by law for div1-
dends. An increase in freight rates
of 81 per cent would be required to
earn this amount. Mr.. Farris did
not make the statement, but the
statement is made by Railway EX-
eeutives that the decrease in operat-
ing income of February, 1920, as
compared to February, 1919, is 224
per cent.
Mr.. Farris said that all labor and
all construction work and material
and machinery had increased enorm-
ously, while there had not been
money with which to increase the IA
cilities of the roads. Trestle tim
Der had increased $50 per cent; ties,
lao per cent; coal, 231 per cent;
labor (section) in 1917 was 1875 per
hour, to day it is % cents, with the
tendency to go up; taxes 4S per ceue
higher. That the maximum rate OF
freight increase since the war had
been only 20 per cent.
Various members of the Assocla-
ton discussed the matter with Mr..
Farr.s, when finally motion was
put and carried that it was the sense
of the Association that the railroads
we're entitled to 81 per cent increase
in operating income and that an m
crease in freight rates was prefer
able to an increase in passenger
rates. A committee was appointed
to draw resolutions to that effect.
Railway Executives make the fol-
lowing statement:
March Returns are Disturbing.
This, however, will be slow pro-
unrest throughout the world and in
this country VIII lch encourages, ap-
parently, a lack of desire to work,
is changed and there is a greater
spirit to work and save, the country
cannot count on any large contrlbu-
ton to the net earnings of the rall-
roads through saving in expenses:
In fact, the results for the month OF
March are even more disturbing than
those for February.
The returns for February show as
follows:
Net Operating Income.
United States (deficiD .$12,217. .633
Eastern DIST. (defcit).. 2S,059,711
Southern District ..... 6,b54, fo2
Western District ...... 9,187,32c
a decrease over February, 1919, of
$22,OO6,294, or 224.S per cent for
the railroads of the United States
as a whole.
The net operating income for the
month of March, 1920, for certain
railroads, shows as follows:
Baltimore & Ohio ..... *$27O,27s
Central r, r. Of n. j.. 399, ,467
Erie r. R. :......... *147,962
Maine Central ........ *331,779
Pennsylvania (E. & W.) *5,656,334
Wabash *571,415
Central of Georgia ..... *134,896
Florida East Coast go. 461, ,464
Louisville & Nashville. 1,4OO,6
O. ri i- Een1 SAT