The Washington herald., 1908-03-15

Commerce show how deep an in
terest the railroads are taking in the
propositions 10 impose q miximum two
cent passenger rate upon them through
Federal law The committee has before
il a batch of some fifteen or twenty bills
dealing with this topic on one line or
another. but all aiming at the same gen
eral end. The bills do not come from the
better-known statesmen, but are the
product in almost every instance Of some
new member who has copied their pro-
visions with rough emendations and
changes from the 2-cent fare law of
his native State That being true. there
Is no immediate probability that any ac-
tion whatever viii be taken on any Of
these bills at the current session. Quite
likely not even the empty compliment Of
ordering one of them reported Will be
paid. But the roads have learned, by ex-
perience in the past. the danger Of allow
ing such movements as those here repre-
sented to get beyond control.
Seek TO Educate Congress.
The railroads have appreciated more
and more the desirability of educating
Congress by giving it the facts as they
see them, that the members may have the
material with which TO correct erroneous
and loose impressions diffused by pleaders
before committees who are presenting no.
tions Of fictitious reform. This is the rea-
son why so much interest was taken
by the railroad interests In the hearings
before the Committee on Interstate and
Foreign Commerce last week.
The general view of the roads is that
a maximum rate for passenger traffic is
likely to be as unfair as one leveled at
freight. The freight rate question has
been committed TO the Interstate Com
merce Commission on the theory that
each case is a special case. and that there
IS no possibility OF fixing general rates
applicable 10 all that would be just and
equitable In reference TO passenger
rates, they are arguing that the different
parts Of the country differ widely in the
matter Of density of population and con-
ditions of travel Therefore. they think
that a maximum 2-cent fare law. made
applicable uniformly TO the United States,
would operate very unevenly and would
result in depriving many Of the roads Of
their property. since they would, in some
instances. have to carry passengers at a
loss, and in others would get only an ex-
tremely meager return.
should Control Passenger Rates.
The railroads claim that the Interstate
Commerce Commission has and should
have the same control over passenger
rates that it has over freights. and that
it should be required 10 hear all cases Of
dispute as 10 the equity Of given passen-
ger rates and determine them according
70 the general conditions of the situation
This is merely another Illustration OF the
satisfaction that is felt by the roads with
the opinions Of the, Interstate Commerce
Commission in a number Of recent cases.
and their belief that they viii be given
fair treatment by the commission as at
present constituted.
The Western roads claim very emphat-
ically that the 2-cent rate would not be
fair. should thorough inquiry be made
into earnings and conditions of trans
pOrtation. in so far as il would apply 10
them. This claim they base on two
grounds showing of incomes from pas
senger transportation, combined with a
showing OF propOrtionate charges and
fixed expenses FOR conducting the road
and a showing that 2-cent fares would
not result IN building UP traffic 10 an eX-
tent that would render the business re
ent sparse distribution
Report of the santa Fe.
The Atchison, Topeka and Santa Fe, for
instance, which is in good financial shape
and has excellent transportation service.
made the following exhibit at the hear
ings with reference 10 its earnings from
passenger traffic:
1871.
Average mileage operated. gZ3l5
Per mile Of line
Total earnings passenger trains from all
sources s. $50 Sc
Cost Of operating passenger trains 205 "A
So-caued net earnings s9l =
Taxes and 81 Is
Socaled net earnings. less taxes and rent
ais zoe o.
Interest on 80 81
sOcalled net earnings, less taxes and
rentals and interest bOnds-------------- 80 g.
When it is recalled that the bonded in
debtedness and capital stock of the road
is under $4,000 per mile of which so, 600
is stock. it is seen that there is here Ger
tainly no very large opening for dividends
arising from passenger traffic. The show
ing Is probably substantially accurate and
is quite paralleled by that of other well
managed Western roads, as was devel
oped by accurate revenue figures at the
hearings, As 70 the contention that =
cent fares would build up the travel more
than enough to compensate for the lower
rate. experience natly controverts the
idea so far as relates to lcng-distance
traffic, the reason being demonstrated by
a compilation of census statistics Of pOpu-
lation in the States and Territories
through which the roads run.
Question of Interest.
Perhaps the most forcible argument
that was brought to bear by the rail-
road men last week relate to the
question Of returns on railroad invest
ments. They argued that If the roads
were a completed industry it might do to
tamper with their returns. But as is well
known. immense investments will shortly
be needed for the purpose Of enlarging
traffic facilities and getting crops TO mar
ket In better shape. The question how to
get capital into the business. they have
argued, is serious and will be rendered
much more so if there is an effort 10 re-
duce an income already none too large
when the risk run is considered. This
whole subject. they therefore argue.
should be left in a shape where investors
viii be assured that reductions, If any.
will be made only after a full investiga-
ton of the money put into the roads, the
worth of the property and the fair and
safe return 10 capital engaged therein.
killing Bacteria with Electric Light.
1t has been found that the bactericidal
effect of the arc light is much superior to