New-York tribune. [volume], March 12, 1920, Page 7, Image 7

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

Image provided by: Library of Congress, Washington, DC

                
Railroads Need
Still Another
Raise in Rates
1390,000,000 Increase Re?
quired in Earnings to Put
jjnc? on Basis Existing
?t Time Control Began
Enable Now to Meet Law
passenger Tariffs to Stay
at Present Levels, Though
Traffic Is Much Heavier
I
By Stanley Frost
Specie* Dispatch to The Tribuns
WASHINGTON, March 11.?Railroad
ntfS will bave to be increased a little
90rt than $390,000.000 off the basis
?{last year's balance sheet if the rail
joads are to be restored to as good con?
dition as they were In three years pre?
vious to government control?a period
daring which prices and wages were
already advancing and during w*hich
?hev had to practice such economy that
t;,ere was a considerable deterioration
ci the properties.
The rates will have to be increased
by $585,000,000 if they* are to meet the
?L per cent specified in the new
?transportation act and another $100,
O?O.OOO to meet the 6 per cent which
|s permitted to provide reinvestment in
?the properties.
The increase in rates will have to
be bigger yet if there is to be a further
Increase in the price of supplies to be
taken care of, and very much bigger
tf any important increase in wages is
panted, which is almost inevitable. If
the wage increase, for example, should
be only half what the workers are now
uking the rate increase would have
to bo $1,155,000,000 to meet the 6 per
cant provision.
Passenger Rates Unchanged
Practically all thi3 increase will have
to come out of freight rates. There is
no talk even of increasing pas?
senger fares, and though there has
been a 33 per cent increase in passenger
traffic in the last few years the equip?
ment is now so crowded that there can
be little further help from this source
till new cars are provided.
The increases since the government
took control have averaged 28.4 pei
tent in passenger fares and 34.4 pei
cent in freight rates. The increasec
fares and increased traffic togetbei
have ser.t the passenger income *u}
from an average of 5085,680,700 in th?
test period of three years before thf
government Took control to $1.178,119,
945. ail increase of $492,439,251. Tht
freight income has gone from an aver
age of $2,369,054.426 in the test perioc
to $3.536.734.:",73 in 1919, an increase o
$1.187,680.147.
How far short, these tremendous in
creases have fallen of keeping up witl
?xpenses is shown by the deficit o
$3?>?,742.308, which the government ha,
had to make up for 1919 alone to pa;
the roads the guaranteed equivalent o
their net income during the test period
If this deficit is to be made up ou
of freight revenues it will require at
Increase of 11.1 per cent in the aver
age rates. But during the three year:
in which the standard on which thes?
rigure? are based the roads were suffer
ing severely.
Credit Declined Rapidly
Though their earnings were fairl;
high, their credit and the prices o
their stocks and bonds were declinin?
steadily, they were unable to extern
their lines to meet the growth of th
country or to borrow for the increase
equipment that was urgently needed
The result was that the end of th
test period found the roads far les
nearly equal to the needs of the coun
try than did the beginning, a sur
evidence that the position of the road
Heeded strengthening.
Congress took th?3 into considera
tion in passing the transportation act
and provided that the roads should b
permitted to earn not less than 5^
per cent or. their value and anothe
Calf per cent, at the discretion of th
Interstate Commerce Commission, to b
used for improvements.
It is on this basis that the rate it
creases should be figured. On th
Present valuation of the roads, whic
is 120,050,000,000. this will require a
income of ?l.l00.000,000 at 5% por cer
and of $1,200,000,000 at 6 per cent. Thi
?eaves a deficit to be made up i
freight rates of $585,000,000, or $685
000,000?16.5 per cent or 19.6 per cen
The latter figure will be more nearl
eorrect. There are certain correi
tiong that should be made to the 191
balance sheet, on which these figurt
are based, and these,.increase to 20.
Per cent the advance that will ha<.
to be made in rates if the roads ai
to be assured the stable position whic
tie ?transportation act intends.
But even this is r.ot all. Prices ai
Itnl going up. Wages also have gor
DP in the latter half of 1919, so thi
they do not all show on the balanc
?beet, and it is almost inevitable th;
wey will fro up still more. If the ii
Crease is half the demands the defic
lor the first year after thev go inl
tfTect will jump to at least $"l,185,00C
?00 on the 6 per cent basis of eari
?np5, and that would-mean a freigl
?t?te increase of 33.5 per cent.
Added to previous increases, the fo
?! rate advance since 1914 would th<
be about 70 per cent?a smaller a?
?anee than the average increase
prices, which is estimated at 82.2 p<
jent in the "cost of living" to Januai
1, 1920.
Thirty-four Meet "Standard Retnrn'
E'?en th?3 increase would not 1
enough to make all the railroads sa
investments. Just as the defici
against fixed charges vary with indivi'
Jal roads, so the deficits against tl
lfiv7Cdard return"' o? the weak 191
?w*J__period show wide inequalitie
Such an increase would put some rail?
ways far above the safety line?in,
which case the government would r?-'
cover half the surplus?but would still
leave others below the point where
they could pay fair dividends.
Which these would be are beyond
calculation till the readjustment of
traffic has taken place, but the figures
for 1919 show which were then weak?
est,?which start the new era under
greatest handicapa.
Taking the 165 most important roads,
there were only thirtv-four which in
the first eleven months of 1919 earned
enouprh to meet the "standard return."
The figures are compiled by the Bureau
of Railway Economics, and do not in?
clude December, which was one of the
worst months of the year. There were
131 road? which did not pay a normal?
that is. the "test period"?profit.
Conditions were worse in the Eastern
district. Of the sixty-five roads there,
only thirteen paid and fifty-two fell
short. The most profitable was the
Michigan Central, which went $8,337,
$55 above its standard return; next was
the Bij? Four, with $3,437,600 excess;
then the P?re Marquette and the New
York, Chicago & St. Louis. None of
the others which exceeded the ^stand
ard touched the $1,000.000 mark, and
all are unimportant lines.
The Pennsylvania was worst off, be?
ing short $43.625.795; the Baltimore &
Ohio was $20.547,214 below standard;
the Erie. $13.729.213; the Reading, $11,
796.388, and the Pittsburgh, Cincinnati,
Chicago & St. Louis, $10.591.357.
Roads which lost between $5,000,000
and $10.000,000 were tho Lehigh, the
Monongahela, the New Haven, the Jer?
sey Central, the New York, Chicago &
St. Louis and the Pittsburgh & Lake
Erie. There were seventeen other
road's which fell more than $1,000,000
below the standard return.
Seven Roads Paid Out
Of the thirty-five Southern district
roads only seven paid out, and none of
them is important. The Illinois Central
lost most., $10,716,588; the Norfolk &
Western, $8,881,593; the Seaboard, $8,
236,156; the Louisville & Nashville,
$6,222.316, and the Chesapeake & Ohio,
$4,022,666. Eijrht others lost $1,000,000
or more.
Factors which make the work of the
Interstate Commerce Commission in
fixing new rates more or less of a
guessing contest, with the future of
the roads at stake, will be taken up
in the next article.
Rival Orchestra Planned
In Boston Symphony Row
Wealthy Music Patrons Offer
Financial Support to ?Mem- I
bers Who Were Discharged
Special Dispatch to The Tribune
BOSTON, March 11.?The possibility
of an organization to rival the Boston
Symphony Orchestra appeared to-day
in the .statement of Arthur Berenson,
attorney for the discharged musicians,
to the effect that wealthy music
patrons had come forward with prof?
fers of financial support.
In this connection it was said that
one individual whose name is secret
has offered S10.000 at once for financ?
ing a series of rival "pop" concerts or
for aiding the union players in their
fight.
It is announced to-day that the thir?
ty-five former symphony artists are
busiiy engaged in preparing a concert
i tour to include the principal cities of
New England, and possibly New York
'? and elsewhere. On this tour Frederic
' Fradkin, the noted concert master, who
has been a storm center in the contro?
versy since he took sides with the men
! in their demand for more money, will
appear as conductor.
-> ,,. , *
Small Bov Gives Alarm,
1,500 Pupils Escape Fire
Children March Out Quietly,
but Hysterical oMthers at
Doors Require Attention
Ten-yvar-old Solomon Sorger, dis?
covering fire in the washroom of Pub?
lic School 25. Lafavette Avenue, Brook?
lyn, yesterday rhorning. sounded the
fire gong and enabled the 1,500 pupils
| to march safely and in order through
smoke-filled halls to the street.
The children in School 79, directly
1 in the rear, on Kosciusko Street, also
j left their building. Both structures
were emptied in less than ninety sec?
onds.
Little damage was done, save by
! water to the personal property of some
i of the teachers. Police reserves had
to be called to keep order among* hys?
terical mothers of the children, who
rushed to the scene.
One hundred and fifty employees of
j the New York Wire Spring Company
I f.ed when fire, which started in the
1 tempering' vats in the plant at 586
I Washington ?Street, leaped up the ele?
vator shaft, mushrooming at each of
I the six floors. The occupants, three
! women among them, got out by front
i and rear fire-escapes.
Clouds of smoke from the burning
' oil filled the streets for blocks and
'?? made the work oi' the firemen difficult.
j It was said last night that the manu?
facture of half a dozen makes of auto
j mobiles would be delayed indefinitely
I because of the fire. Three alarms were
| turned in. The damage is estimated at
! $50,000.
[ > , " ' ?v
f MANSION FOR SALE !
One of the finest In
PARIS
Magnificent property belonging to Rus?
sian nobleman, situate at the gates of
Paris- in the Bola de Boulogne within
two minutes of Auteuil race-course.
Beautiful ground? in the midst of
which stands a princely mansion. Im?
posing Kulte ot reception room?, pan
eiled u-lih fine old boiseries, number of
master's bedrooms with bathrooms,
ample servants' accommodation. Fine
modern outbuildings, with up-to-date
garage ar.d stabling. UNIQUE OP?
PORTUNITY. Price $230.000.
Apply FRANK ARTHUR, 378 Rue
St. Honore, Paris, or
Douglas Gibbons
?ik? Company
hoBBC ?a**?!
V-/s
now ,
open/
formerly Can/ields "
5East 44th Street
^eJZestaurantdelwce
Qft/Tmerica*
Telephone: Murray Hill 6400
Children's
Night Gowns
Two practical models, one with
a bias fold, the other a dainty em?
pire style?trimmed with embroid?
ery. Unusual values.
Sizes 4 to 10 1.45 to 2.65
Sizes 12 to 16 1.65 to 2.S?
Store Hours 9 A. M. to 5:30 P. M.
Fifth Avenue Week, April Sth to 10th?A New Yearly Event
otficAwctiue at 40tft^eet
Auto Robe Clearance
Steamer Rug Clearance
%
to Almost
1
%
Price
The values offered during this sale are truly remarkable and cannot
possibly he duplicated again, for new assortments of the same qualities are now
on the market at almost double the prices.
Robes
Plush Robes?extra heavy and warm
qualities.
Value $22.50
12.75
Rugs
Fine all wool quality in cheerful Plaids.
Full size.
Value $45.00
28.00
No C. O. D.'s
Rugs
Plaid Steamer Rugs?in conservative
reversible styles.
Value $12.50
7.75
Plaid Rugs of extra heavy all wool?
reversible. An excellent quality.
Value $30.00
19.50
No Returns No Approvals
% SILK EVENT
Of Great Importance
REASONS WHY
\?Merchandise moat in demand
2?Merchandise of the most scarce variety.
3?Colors and combinations the best.
4?Quantities Large?Prices Unequalled.
Neckwear
Paris is authority) for the correctness of
these jauntily smart styles. .
Introducing the clever round collar of sheer Ba
?iste with inserts of Val. lace and hand embroid?
ered dots. Finished with a dainty Irish Picot
?-ge. 1.50.
Tuxedo shape Collars of Batiste and Net?
edged with Venise Lace. 2.75
Fine Net Guimpes with hand embroidered dots
?high neck model and the smart Tuxedo collar
?'uimpe?designed for the new Eton Jacket effects
in suits. 3.00.
Two Clasp
Kid Gloves
At 3.00 Pr.
In White, Black, Tan, Mode, Cham?
pagne, with self and contrasting em?
broideries? will harmonize or make an
effective contrast with the new spring
apparel.
Swiss Taffetas
In Black and Navy only?imported
Chiffon weave with a lustrous finish
?38 inches wide.
Value $6.95
Colored Satins
A beautiful soft finish in Marine,
Navy, Havana, Silver, Sand, Covert,
American Beauty, etc. 36 inches.
Value $5.75
Spring Foulards
Imported Figured Foulards in the
leading Spring and Summer combina?
tions. 40 inches wide.
Value $5.75
4.75
yard
Georgette Crepes
In Ivory, Ciel, Rose, Orchid, Pink,
Du Barry, Belgian, Seal, etc. 40
inches wide.
Value $3.85
New!
0
Cotton Weaves
Various countries have contributed
their best to the Arnold, Constable
Spring showing. From Switzerland,
Ireland, England, France and Scot?
land come these fascinating nov~
elties, including the new?-*
Irish Dimities
Small, neat printed design? which are idea! for
the demure little morning or afternoon frocks.
32 inches wide. Yard, .85.
Ginghams
Imported and Domestic Weaves in strip?,
checks, plaids, and plain shades. 32 inches. Yard,
.75 ?? 1.35.
Dotted Swisses
Imported weaves with white or colored grounds
?large, medium and small dots. 31 inches wide.
Yard. 2.00 to 2.75.
Novelty Voiles
Foreign and domestic weaves with large and
small designs on colored grounds?also polka dots
in a variety of sizes. 38 to 40 inches wide. Yard,
.90 * 1.50.
Swiss Organdies
?in the loveliest of the season's colorings?an
extra fine quality, with a permanent finish, 44
inches wide. Yard, 1 25
Linens
Non-Shrinkable qualities In a brilliant assort?
ment of new high shades ; also more conservative
tones. 36 inches wide. Yard, 1 ?C
White Goods
A complete stock of plain and fancy white fab?
rics, consisting of English and French Nainsooks,
Mercerized Batistes, Madrases, Washable Organ?
dies, etc., moderately priced.
5,000 Yards of Black Silks
Black Silk Voile?40 inches wide.
Value $3.85. Yard, 3.15
.Black Georgette Crepe?40 inches
wide. Value $3.85. Yard, 3.15
Charmeuse Satin?Black?40 ins.
wide. Value $6.00. Yard, 4.95
Black Satin Duchesse?36 inches
wide. Value $3.45. Yard, 2.95
Dress Goods
Specials
Wool TnCOtinC-56 inches wide?an?
other' new shipment of this justly popular material
in Midnight Blue only.
Regularly $6.00. Special 4.95.
All Wool Serge-41 inches wide?in new
shades?also Navy, Midnight Blue and Black.
Regularly $2J5. Special 2.25.
Special Prices Prevail On
New Spring Suits
(For Women and Misses)
We have taken two unusually
effective models as special fea?
tures and marked them at attrac?
tively moderate prices to intro?
duce the new fashions and to
create interest in the representa?
tive showing.
The style illustrated at the left is
of Blue Serge Fino, smartly trimmed
with braid. Women's Sizes.
Specially Priced at 78.00
The style illustrated at the right is
a Misses' Eton Suit with wide sash in
Roman pattern.
Specially Priced at 65.00 *
Of particular interest is the collec?
tion of ?Misses' and Women's New
Tailored Suits.
Priced from 52.00 to 195.00
??\":.
An Advance Showing of
Novelty Glove Silk Vests
An innovation in soft silken vests is brought about by the new vertical stripe drop stitch design. In
Black, \Vhite and Pink?bodice top and satin ribbon shoulder straps complete this rather unusual and very
delightRl style, which has been specially created to conform with other new lines in outer apparel.
Each 5.25
Silk Finished Mull Combination Suits with self-figured starry design?fully reinforced?in Pink or White
-athletic model.
4.75
Last Days of the Clearance
Winter Apparel
Ya
to
Y3 Reductions
From Former Original Prices
All Women's and Misses' fur
trimmed and plain tailored or dressy
Coats, Suits and Gowns now subject
to (25 to 33 1-3) one-quarter to one
third reductions.
Effective Styles in Blouses
of Georgette and Dimity
White Dimities in smart Tailleur models with white pique collars
and cuffs. 3.95
Georgette Crepe Blouses (as illustrated), one of the loveliest
styles displayed so far this season. .White and Flesh Georgette is
used to advantage in combination with inserts of Filet lace?a small
bow at the top of the vestee gives a dainty finish. 10.75
Beaded and embroidered Georgette Blouses in new Spring color?
ings; also White Silk models developed along tailored lines. 12.75
Imported Crepe Kimonos
Of soft, crinkled Cotton Crepe embroidered in Blue, Rose, Pink
and Lavender. 3.95
-Odd Silk Sweaters?Less Vi
70.75
Discontinued models in odd colors?all silk weaves. Formerly 37.50 to 45.00 Now
subject to 33 1-3 discount (1-3 off). No C O. DV No Returns. No Approvals.
l/2 Under Value
Men's New Silk Shirts
of Double Weight Broadcloth
Same Fine Quality
Same Fine Making
Only the most desirable patterns and colorings are featured?
including hairline stripes, cluster stripes, tape stripes and pencil
stripes, also a practical variety of other popular styles?separate
collar to match with each shirt.
Now Retailing Elsewhere at $16.50 to $18.00
Out Sale Price Continued This Week at
10.50 *?*-???? *? ***>
?*^=" " *
Linen Table Cloths
68, 70 and 72 Inches Square
Only a limited quantity of these all linen Goths, in several unusually attractive
designs?also a few plain satin band Cloths which have been priced at about to-day's
wholesale quotations.
8.25, 10.75, 11.50 and 12.50 Ea.
Scarf8, Tea Cloths and Napkins
Scalloped heavy al! linen Scarfs suitable for Buffets, Bureaus, Serving and Dress?
ing Tables?just the right kind of linen for summer homes and bungalows.
18 x 36, 1.50 Ea. 18 x 45, 1J5 Ea,
M x 54, 2.00 *??
Tm dota, aad fepafe?, 2.50 ?? 6.00
Hair Nets
New assortments always in
reserve, thus insuring a con?
stant supply for the ever in?
creasing demand. Full size
Nets in caps and allover shapes
and in the popular shades.
1.00 Dozen
Grey and White Nets?fine
quality of Human hair?at
2.00 Dozen
iVo C. O. D.'sa