The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-02-24
Commerce Commission Decision
Is Not a Death Blow.
WILL FORCE ECONOMY.
But Will Have Little Effect on
General Business.
Says Brandeis May Have a
Chance for His Theory.

OHlCdSO, f6D. E4@1n0 interstate
commerce commissions decision
against the increase of freight rates
was designated negative proposition,
one which would show it's effect in a
way that would not be apparent to
the general public bv President H. U.
Nudge of the Rock Island railroad
system today.
1--WE simply will have to hold down
to stricter economy" said Mr. Nudge
"It will be an insidious trimming
down, not apparent to the general
observer. 1t will mean fewer men
here, fewer extensions and improve
ments there, and all devices for
economy that can be utilized. I don't
think there will be a disposition to
allow the condition of the properties
to go backward, SO the economy will
have to come from operation.
Extensions will be made, however
if they pay. We are going tot put a
6S mile road through to connect the
Twin cities with Kansas City. having
bought a little road north of Des
Moines. But that will be a paying
proposition, you see.
Railroad properties had begun to
look up in value and while this will
not have more than a temporary ef-
feet in stock values, in my opinion, it
will tend to check the rise in the gen.
eral railroad outlook. It won't affect
business any that 1 can see. except
that curtailment in purchases may
force a shade off steel, lumber and
iron prices.
I'm short, the whole effect will be
added economy and perhaps Mr..
Brandeis will have a chance to show
how it may be DONE"
Baer Is Filled With Forebodings.
Philadelphia, Feb. 24-George f.
Baer, president of the Philadelphia &
Reading company and also head of
the Central Railroad company of New
Jersey, in a statement given out today
expressed great surprise at the deci-
sion of the interstate commerce COM
mission. He says there viii be a cur
taflment of railroad expenditures and
states that If the result shall be to
bring about a general reduction in
wages and in material and supplies, in
the end the railroads will suffer no
more than the general public.
Mr.. Baer's statement in part fol-
lows:
"It has always seemed to me that
the request of the railroads to be per-
mitted to advance class rates was a
most reasonable one in view of the
enormous increase in expenses to
which the railroads have been sub
jected. 1t seems to me the commits
sion has not given due weight to the
fact that the prosperity of the trans
pOIldllOh COIApdAy AS CSoSIIldI " ll1c
normal development of the country.
eff the result shall be to bring
about a general reduction in wages
and in material and supplies, in the
end the railroads will suffer no more
than the general public and in time
all these things must correct them
selves. I am a firm believer that eco
nomic laws in the end will prevail
The railroads can not successfully op-
crate their lines without sufficient rev.
enue to enable them to meet public
requirements for transportation which,
in this country, have beer in excess OF
any other country.
"It is probable that the railroads
have been extravagant in their expen-
ditures to meet the public demands
for increased facilities of every kind
They could possibly have limited the
cost of terminals, but every city in the
land was demanding of the railroads
that their terminal facilities should
not alone be adequate to meet trans
portation problems, but should be OF
a character, ornam entail and attrac-
tive, in order to meet the public desire
for big things
1.-THE rates involved in this decision
are of no serious consequence to the
Readings business, but it will suffer
by the indirect injury to the trunk
lines. whose revenues will be seriously
affected. I do not know what action
the trunk lines will take as to an ap-
peal to the commerce court"