The news & observer., 1905-10-25

generally will, result in adjustments
which will brln~ down whole tiers OF
rates, leaving the relation of rates as
they were. and entailing enormous
losses TO the railways. For instance
an adjustment of rates to Southeast
ern territory that Wourd be more taV-
orable to Cincinnati, Chicago. and ST
Louis, as compared with the rates
from the Atlantic seaboard cities
could not be successfully made by d
governmental agency limited to the
making of maximum rates. for the
reason that if it should be ordered
that the rates from the middle Wes-
tern cities should not exceed certain
maXima the railways from the east
ern cities or the water lines would
still be free to lower the rates: and
they would be forced to do so in or
der TO retain their business and 10
preserve the business of the cities de-
pending on them for transportation
facilities. The result would be that
substantially the same relative adjust
ment of rates that had existed before
the issuance of the order would be
restored, and no one would have re-
ceived any substantial or lasting ben
eht. 1t is true Inat the shippers from
both sections would have somewhat
lower rates, but they would be obtain
ed at the price of such inrOadS into
the revenues of the carriers that de-
terioration in service might esult.
The Importance of this considera-
ton, not only to the railways but the
shippers as we'll. can be appreciated
at this time when there is a car short
age all over the country, with freight
congestion at many points. Despite
the fact that the railways have been
investing largely in extensions and in
curing enormous obligations for the
purpose, their facilities are not equal
to the tasffic demands upon them,
these increased expenditures still con-
tinue and from the present outlook
must continue for a long time This
viii require large additional sums Of
money which the railroads can OBJ
tain only through earnings and the
sale of new securities. Governmental
action that would reduce earnings
would impair both of these resources.
and would render still more diffii-
cult the lack of meeting the require
mentS of the public.
THE speech at Raleigh indicates al
so that the President favors giving to
the railways more leeway than he foF-
mally suggested by not having the
rate take effect immediately" but in
some reasonable time. A reasonable
time for a rate may mean time for q
review of it by judicial and not ad-
ministratiVe authority of the rights OF
property found to be involved.
"The Esch- Townsend Bill as passed
by the House of Representatives last
winter would not only have subjected
the roads to punishment before judi
cial convention. but the character OF
judicial review proposed was such
that they would not have had the ben
eft of equitable trial even after con-
viction. for the courts would have
been precluded from considering the
reasonableness of the rate complained
Of and the rate ordered by the COM
mission would have been set aside only
if it had been found to be con-
fscatory. 1t is important. therefore.
if legislation is to be enacted that Will
insure to the roads a square deaF that
the opportunity for prompt and ef-
fectivc review of the whole case by
the courts should be provided for