The Bridgeport evening farmer., 1910-03-03
WOULD ssHAKE OUT
THE WAITER

Judge Grosscup who is one of the most prominent members of the Feo- erai bench, is the author of an article s.Prosperity With Justice-Worklng Toward a Solution, in the North American Review. Some of his sug- gestions follow:
 First: Let there be a valuation or each of the railway properties q A tlNc The railway properties as an lIlusIIa lion only). rejecting the cost ot f9- production as the measure, put t;1klhs IS the measure what it fairly cost to bring these railroads to their present e17atlitiorl Add to thiS. as time goes pla the cost Of extensions ana such Il4lDroV Venents as ought to go 10 capl. tai account; and upon the capita! thae H14e two thus constitutes capital that I$ definite-allow returns at 9 deflhlte given rate. after making proVlsloh Tor Appreciation. maintenance ana tile ttlhz h1a movements that are righly chargeapl ple to operation and not to capltal ac-
 Second: The traffic rates now cl1arg- es the public by the carriers are on flo with the Interstate Commerce Commission. Take these, or such rates as are on file when the foregolng change goes into effect. as the second definite postulate; and ascertain at given intervals what the public mas saved, if anything, by the appllcatloll of reduced rates instead of the prev lous rates, to the traffic carried during the preceding period.
 Third: A saving to the public hay- ing been shown, allow the carrier out of the accumulation, if there be any, and if the reduction be not at the eX- pense of quality of service, as return additional to his fixed return. ger ger tain percentage of such savings (the maximum to be dehnite), as also pos sibly for a security fund against the sslean years. this maximum also TO De definitely fixed; allow the Employee Insurance and Old-Age Pension Fund another percentage; and the Elm ployee's Investment Account another Eercentage, to be invested for them and as their property Cthe apportion- ment to be according to age and length of service) in any authorized future issues of securities of the carrier for extensions or improvements
 Fourth: Should it appear on such periodical accounting that the carrier has accumulated out of the rates charged the public, over and above the needs above set forth. and the con stant bettering of the service, further amounts. the same shall go into the United States Treasury, unless W1tnln a succeeding given period itsshau have been absorbed in a still greater better ing, of service or a reduction of rates of traffic charged the public.
 The first. of Judge Grosscup's sugges- ton would shake out the water from excessive capitalizations, and would base the rate of return upon such reduced capitalization. This would at once permit the lower rates for which he provides in the subse- quent suggestions. Taken as a whole Judge Gfosscup's plan seems certainly fair to the public, and also fair to sucE corporations as have not watered theil capital stock but severe upon such as have jacked up their capital either tc profit the managers at the expense o1 investors or to hide extortionate re- turns upon the capital actually invest ed. Of course. this plan will not SC cure the favor of the latter class ot corporations.