New-York tribune., 1910-12-09
THE RAILROAD TTEF OF RATES.

HIr Walker n. Hines. chairman of
the executive committee Of the Atchi
son. Topeka & Santa Fe Railroad, dis
crsSes in the current "Out look" with
unusual clearness and force. from the
point Of view Of the railroads. the ques-
ton now before the Interstate Com
nerce Commission. Mr.. Hines lays down
the general principle that a railroads net
earnings should be large enough To en-
able il 10 pay attractive dividends on
its stock and 10 devote a surplus regu-
larly TO Improvements and betterments.
We suppose every one will concede il to
be in the public interest TO have the
credit of railroads sustained. Mr.
Hines seeks to show the need Of increas-
ing rates from the experience Of his
own road. which has. indeed. been able
70 devote a considera bic surplus to i'm
provements, but which. on the basis of
the figures for 1910. compared with those
cf 1909. appears to have a rapidly di-
minishing surplus for such purposes.
The Atchfson railroad. moreover, has
the reputation OF being managed with
unusual efficiency. having employed
successfully. at least In its repair shoIs.
the principles recommended by Mr.
Brandeis's witnesses at the recent hear
ings.
Thus, as regards his own road, Mr..
Illness figures are persuasive on their
face, IF there We're only one road in
the country the application Of the test
proposed by him would be simple. But
the circumstances Of no two roads are
alike. One, We may say, is laboring
under burden OF debt which past mis-
management heaped upon il Another
was built unwisely in a territory that
never fulfilled the promise its builders
thought they saw in it. Another Is in
efficiently managed. Another is adyan-
tageously placed where traffic is heavy
and profitable, but its management is
unprogressive. Another is as well situ-
ated as the last mentioned, and has in
addition the advantage OF extraordi-
narily efficient management Other
varieties viii occur to mind readily
enough Now, it may be that there are
many roads so fortunate III location, in
their previous financial history and III
their present management that when the
Interstate Commerce Commission sub
iects them 10 analysis their earnings
viii be found sufficient, according to the
test which Mr.. Hines proposes. The
earnings of others certainly will not be
sufficient But the increase Of rates
must be uniform for all the roads con-
cerned. Obviously, whatever increase is
granted, should any be granted, it is
likely TO be too much, according TO that
test, for the most prosperous roads and
too little for the least prosperous.
Under competition the situation of
the most favored lines determined the
rates, and the less fortunate ones had
to get on as best they might Are we
going to change all that and let the
rates for all roads be determined by the
most unfortunate roads need of a sur
plus and a credit that will make q
market for their stock? Would that be
for the best interest of the people as a
whole? And If we are not TO be tender
toward the lame ducks, nor yet TO
let the situation Of the most favored, as
in competition, be the determining
factor, then shall the determining factor
be the situation OF the average roadt
If so. yssat becomes of the test laid
down by 1r. Hines, which every cne