Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-12-14
The Railroad vi.,. Of Rates.

i-SSN ioIh 1IlDuE.J
Mr.. Walker D. Hines, chairman Of
the executive committee of the Atchi-
son. Topeka q Santa F'e railroad, dis
cusses in the current outlook" with
unusual ciearness and force, from the
point Of view of the railroads. the
question now before the : interstate
| commerce commission. Mr.. Hines lays
down the general principle that rail-
roads net earnings should be large
enough 10 enable it to pay attractive
dividends ON its stock and to devote a
surplus regularly TO improvements and
betterments. We suppose every one
will concede it to be in the public in
terest to have the credit of railroads
sustained. Mr. Hines seeks to show
the need of increasing rates from the
experience of his own road, which has
I indeed, been able to devote a consid-
cradle surplus To- improvements but
which. on the basis of the figures for
1910, compared with those Of 1909, ap-
pears to have rapidly diminishing
surplus for such purposes. The Atchi-
son railroad, moreover, has the repu-
tation OF being managed with unusual
efficiency. having employed success
fully. at least in its repair shops, the
principles recommended by Mr.. Bran
OCiS WiShcSSSe al lNe recent HGt4IlIlSos
Thus. as regards his own road, Mr..
Illness figures are persuasive on their
! face. II there were 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 a burden of debt which past
mismanagement heaped upon it. An
| other was built unwisely in a terri
tory that never fulfilled the promise
it's builders thought they saw in IT..
Another is inefficiently managed. An
other is simultaneously placed where
| traffic is heavy and profita BILE, but its
management is unprogressive. Anoth-
er is as well situated as the last men
toned. and has in addition the adj
vantage of extra ordinarily efficient
! management. Other varieties will oc-
cur to mind readily enough Now, it
may be that there are many roads so
fortunate in location. in their previous
| financial history and in their present
management that when the interstate
| commerce commission subjects them to
analysis their earnings will 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 Oe
| uniform for all the roads concerned.
Obviously, whatever increase is grant
ed, 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 q
surplus and a credit that will make 2
market for their stock? Would that
be for the best interest of the people
as whole? And II we are not to be
tender toward the lame ducks" nor
yet to let the situation Of the most ia
vored, as in competition, be the de-
termining factor, then shall the de-
| teFmining factor be the situation Of
the average road? II so, what becomes
Of the test laid down by Mr.. HtDeo.
which every one will admit TO bo rea-
sonable enough as applied 20 any one
road? 1t has not ruled In segard to the
lame ducks" TO which 10 refuso1 the
credit that seems desirable as a gem
eral principle, and 1t has not gov
erned In the case Of the most fortunate
roads, which have their credit swollen
beyond the point alphabetically Ax6l
~ necessary.
! Tue pE!aelgle aAoDtoA ~ ~. 0lool