Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-08-20

pull the figures on them. And the
railroads will have a pretty tough time
making a case for themselves out OF
the figures, providing they confine
themselves to a period of normal bus
mess conditions. The statistical evil
dence is absolutely clear that the rate
law and the application of the Roose-
Welt doctrine of common honesty have
imposed no real hardship.
Rate Law Profitable.
The Hepburn rate law went into ef-
feet in August, 1896. Consequently the
G5cal year ending June 30, 1907, Is
the first year for which statistical
figures will show the effect of that leg
islation. 1t is also the last year for
which complete figures are available.
From what angle these figures are
viewed, they show that the railroads
made more money during the first year
of the rate law than they did during
the last year of running things to suit
themselves. The income from opera
tion for the year ending June 30, 1906,
was $7SS,SS7,S 96. This was the record
figure aggregate up to that time in
railroad history.
But during the first year of the rate
law the income from operation ran up
to q total of $40, TIA gain of
$517O1 S6S. 1t is true, of course, that
the railroad mileage had meanwhile
increased In 1906 the mileage was
222,34O.30; in 1907 it was 227. 454.S3. But
even when the difference in mileage is
taken into consideration, a marked gain
is shown for 1907. The net earning per
mile of line for 1906, the last year of
freedom" was $3.54S; for 1907, the
first year of the rate law, it averaged
$6,696.
This figure on net earnings tells the
story at the point where harmful leg
slation would be most apt to be made
apparent. 1t does not, however, go down
to the final point to which the holders
of railroad stocks look for their divi-
dend But the interstate commerce
commission Is prepared to pursue the
figures to the end of the chapter. The
comparison is favorable to the rate law
and to reasonable regulation from be-
ginning to end When every deduction
and every addition upon whatever ac-
count had been made, the net income
for 1907 was $449,461, 1SS, every cent
OF which was available for dividends
or for surplus. The corresponding fig
ures for 1906, the last year of go-as-
you-please methods, was $685., 1S6,32S.
Received More Compensation.
The commission knows, too, that the
railroads received on an average more
compensation for services during the
first year of the rate law than they
had during the year preceding. The
average revenue for a passenger for
1906 it was zoos cents. This difference
does not look large, but it counts up
when the aggregate travel of the coun-
try is considered I've average rev.
enue ton for each mile for freight
was 0759 cent in 1907; in 1906 it was
0.74S cent.
These figures are somewhat difficult
to draw deductions from. particularly
because of variations in freight CLASH
fications. But at least part of the
difference in favor OF 1907, it is safe
to assume, Is due to the fact that the
rate law Is administered by the COM
rate law as administered by the COM
mission has cut off leaks. The rate for
a passenger mile undoubtedly shows
the effect of abolishing passes, and the
rate for a ton Of freight likewise may
be assumed to show in part the effect
Of cutting off the rebate evil.
Very recently the commission has
taken another step which will protect
the roads. BY it's decision in the Gen
eral Electric case it has put an end