The Washington times., 1911-02-26

the decision, there will be no further
advances, and, even il no reductions oc-
cur, greater efficiency of labor must re-
suit from more prudent management.
A Prosperous Year.
The year 1910 was not a. bad year for
the railways of the country. In fact, it
was the banner year in their history.
Despite the unsettlemenr of the financial
market and the lessened degfee of
commercial activity in the latter half of
the interval gross earnings amounted
to $2,S25, ,2I6, Isl, an increase over 1909 of
no less than $229, 49o, 446, which, in them
selves, were $27S,O38, ,372 above 1903. The
net earnings have not as yet been COM
piled, but surely such results as the
above betOken no disaster to the railway
industry of the country. Net earnings
will not show up in like proportions, but
the net gain for December was 2,lI5.OII,
and assuredly no such gross increase
$229, 900, O,OUO-Can be swallowed up entirely
in higher operating cost. If so, then
there Is the greater need OF economical
management. for no industry can sur
ViVe prOdiGality.
What effect the refusal of the Com
merce Commission to grant rate in
CreaScS may have on contemplated new
railway financing and upon reViVing
industry remains. of course, to be de-
termined In their first disappointment
the railway officials assert that it must
be harmful, but important banking in
tercsts do not fully subscribe to this
view. ASSurcdly there are two sides to
this proposition. What the railways
lose in anticipated earnings thrOugh h
prospective higher rates is certainly
saved to the consumer. And there Is
another matter of which the speculative
element appears to have entirely lost
sight, which is that the decision of the
commerce hoard reduces no rates, for
the higher rates which are prohibited
were never in effect, and the huge earn
ings of 1910 were made on rates which
are still in force. Aside from which the
commission does not close the door of
hope to efficiently managed roads which
| demonstrate the ineIfciency Of present
rates.
Not All Pessimistic
Aside from that 1t should he borne in
mind that the amounts asked in the way
Of increases were not, as rule, very
large. Some of them in fact are 81
| trihing that one really wonders what
all the disturbance is about, and many
roads asked for no increase at all. OF
course it is recognized that in the mat
ter Of operating cost and freight
charges, the railways Of tn" country De
| not all stand in tn" save position, ana
TSOm" Of them. particularly in the East,
liz would appear, might IN AT fairness
Ihave been granted some Increases, but
| since this j. not 10 be at this time. the
only course that they can pursue is one
OF rigid economy. Certain contemplated
work in the nature Of extensions and
! improvement Will, doubtless, have to
! he longer deferred. but this Will not
affect all companies or affect all in
uprTlE
It should he noted that peSslmiStic
| views concerning the freight rate mat
ter do not prevail in all quarters OF
WalI Street. In fact there are some per
sons. more particularly among the in
dustriaI corporations than elsewhere,
who express the opinion that in the
long run the failure Of the Commerce
Commission to grant rate increases Is
a highly favorable development. These
point out that in all probability II
rates are advanced that labor would
renew its demands for further wage
increases and that the vicious circle OF
higher wages, higher rates. and higher
cost Of living would continue.
| Persons who subscribe to this view