The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1910-09-29
Rail- WAY REGULATION.
THE NEW YORK TDfEs MAKES
SOME COMMENTS ON IT.
1t Says Even ii Misfortune of the
Railways Were Imputed to Them
For a Fault.

In discussing the railway regula-
tion the New York Times says al
though there was little novelty In
the railways presentation of their
case for the advance of their rates,
there was much that was novel IN
the shippers contentious. In Chica--
60 it was testified by one railway
that forty million dollars Of earn
ings had been put back into the
property. In this city 1t was test:-
fed that some thirty-five millions Of
dollars Of earnings had been expend-
ed. upon the new Pennsylvania termi-
nal. This was in accord with the
formerly approved rule Of practice
by the best roads-"'a dollar FOR
dividends and dollar for better
ments. 1t was this principle Of
plowing the earnings back into the
property which has kept down the
capitalization o. American railways.
at the same time that their rates
have not risen. with other prices for
services and goods.
con this formerly approved princi-
pie the shippers counsel Joined is
sue, taking their cue, it must he ad-
mitted, from certain rulings of the
Interstate Commerce Commission.
These Improvements made from ear
nings were regarded as grievances,
and in themselves as proof of extor;-
lion. It was asserted as a right that
the roads should reduce their rates
by whatever sums Of earnings they
have been accustomed to devote to
Even the misfortunes
of the railways were imputed to
them for fault. For example, 1t
was alleged that because one road
had lost large sums by equipment
frauds, and had prospered neverthe-
less, therefore it had oversharged by
the amount it mad lost by embezzle-
ment, and should be held to reduce
it's rates by the amount of it's loss
es. The broad prosition of those
assuming to act for the general pub
lie is that the railways should be
allowed to charge no more than
would just prevent their setting up
a defense of confscation. And, In
estimating their permissible income
the railways are held bySthese
spokesmen to be entitled to no more
than reasonable income upon the
amount Of their own funds which
they have devoted to the public use.
These gentlemen seem in some
danger OF winning battle and los
ing a campaign. 1t is conceivable
that they may prevent an advance
in rates, and come to regret the con-
sequent lack of vitality in the rail-
ways. American railways are far
from having attained their growth.
They are in heed not only of income
enough to sustain their life, but to
stimulate their growth. There is a
certain justice in haveing the funds
necessary for their growth contrib
uted by those whose patronage or
the railroads is a source Of profit,
rather than by the general public
whose gain from the railways is less
direct. If the railways arc held to
capitalize their betterments, and
must borrow the money, interest
must be paid on the money borrow
ed, and the rates must be adequate
to pay the interest and provide
sinking fund for the extinguishment
of the debt. AS interest and sink
ing fund must come from earnings,
it would seem to come to the same
thing in the end.
"Whatever the merit of this argu-
ment on either side, it is plain that
a new hight is thrown upon what Is
thought to be regulation OF rates.
Heretofore it has been thought that
the function Of government was
merely to assume that rates were
reasonable and just, that is, neither
extortionate nor discriminatory, tow
ard either persons or places. If the
position assumed on behalf Of the
shippers is sustained there Is no de-
tail of the management Of the rail-