The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-18
Tho Railroad Rate Hearing at wash
ingtOn.

~ ANhs
Representatives of the railroad in
terests are gathering in Washington for
a formal presentation Of their side OF the
rate regulation question before the Sen
ate committee. 49,
The one fact which should be kept
clearly in mind by every man who writes,
talks or thinks about the railway rate
question is that our national prosperity
stands or falls with our transportation
system. II depends not only upon the
existence Of a certain number Of locOmo-
tives, cars, rails and a right Of way, but
upon the maintenance Of these and all
sother appurtenances in a state of the
highest efficiency. Freight and passen-
gers not only must be moved, but they
must also be moved with speed and
" safety. The gross earnings Of the rail-
ways for freight traffic for the year end
ing June 80, 1908, were 81 1895, 76S,5Sl
: We're rates subjected TO a general reduc-
ton Of Is per cent, there would be an
apparent saving TO shippers and con-
sumers Of more than 10000, 90 q year.
Yet this could be effected only by the
, sacrifice Of working efficiency, eutRiling
a loss TO the community Of o sum which
would not be covered by the apparent
saving
. II Is useless 20 assume that there would
Be no such loss simply because OF the
impossibility of expressing it by figures.
Compared with rates prevailing in other
lands, American rates are admitted to
be low. Yet the part played in even
that low cost by the item OF efficiency
Of service is generally overlooked or
disregarded. As 1t is, with all our equip
ment of powerful locomotives, capa-
cious cars, and eve improving roadbed,
and I'm spite of express freight trains
which haul loaded trains directly through
from city 10 city, and even from coast
20 coast, there is persistent complaint
of delay In the transportation Of mer-
chandise. Goods are ordered by tele-
graph with instructions TO put tracer
on their heels to insure quick despatch,
A reduction in rates would impair seri-
ously the present efficiency and the oon-
sequent loss is impossible OF estimate.
1t is 10 be hoped that the hearings
In the removal from the public mind OF
two mistaken notions. One Of these is
that railway rates are out of proportion
10 service rendered, and the other Is
that rates can be reduced at no expense
70 any one excepting a few railway
magnatss. Much Of the uproar springs
from an idea that the public is being
robbed by the individual rate makers
and that the rate makers own the roads.
Admitting that there are isolated cases
Of excessive charges, it must also be
admitted that there IL no evidence what
ever, nor is there even any assertion,
that rates In general are other than en-
hrely reasonable.
II Is useless 10 say that Federal COM
mission authorized 20 Ak any and all
rates would concern itself only with the
unreasonable ones. Railroads are indis-
pensable in our national economy. Their
I continued operation, individually as
well as collectively, depends upon actual
or prospective margin Of profit. Under
a continual menace Of interference with
its sources Of revenue, by power out
, side It's own organization, no railway
management can reach or maintain it's
greatest efficiency. Shippers viii In
! eVitsbly appeal TO any court or COM
mission which may be established for
q review and reduction of rates to which
they had previously taken no exception.
+ This can result only in a derangement
/ and an unsettling Of managerial plans
for improved efficiency, az consequence
: Of uncertainty in the amount and source
OF revenue.
The most desirable result possible Of
, attainment by tho Senate committee
would be the restoration Of the whole
question 20 tho terms Of the original
proposition as they we're contained in
the Presidents message. That called
for the enforcement Of existing laws for
the correction Of recognized evils, and
was coupled with the now generally
overlooked expression, Il am OK the
opinion that at present It would be UNI
desirable, If il we're not impractioable.
finally to clothe the commission with
general authority TO fix railroad rates
Nothing has happened during the last
four months TO make official regulation
Of railway rates any more desirable or
any more practicable than it was when
these words we're written. Departure
from the main idea has plunged us into
a jungle Of theories, specUations, alb
stractions and uncertainties. Let us
get back again 10 sanity and a firm
found alton - .g.t 81