The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-02-25

CrediJ Ot railroads tnan the u"cISlon
itself"
The attitude displayed by other ran
road men was that of complete acceptance
ot the decision as final settlement of
the rate controversy. Ii was regarded as
adverse by all of them ard as perilousy
adverse by some. but there were no
definite announcements of proposed
resistance 10 the decree. The question
Of appeal to higher tribunal than the
Interstate Commerce Commission re-
ceived only incidental consideration and
discussion.
Except for the announcement of the
Central Pacific bond sale bankers were
extremely relicent about The eNec, of
the decision upon the market for rail
way securities and particularly so about
the reaction which might follow in the
market for railroad bonds Some in
deed held that not only would there be
no detrimental after effect in the railroad
bond market, but that capital, scared
away from stocks Ivy the decision, might
accumulate and eventually find its way
into bonds Others forcsaw no effect
whate, or in bonds and only IA temporary
effect in thc stock market. One banker
said that a bumper crop in the 1911 har-
vest would make every body forget that
there was ever rate decision.
Among the more formal comments
on the decision was one from President
George i. Baer of the Reading and the
Jersey Central MIR Baor said
The decision of the Interstate Com
merCe Commission is a great surprise
II has seemed TO me- that the request
OF the railroads TO be permitted o adv ance
class rates was most reasonable one
in view of the enormous increase in eX-
penses to which the railroads have been
subjected
1T is not worth while TO discuss the
decision II seems To me the Commis-
sion has uoi Civ EN- due weigh, TO the
fact that the prosperity of the transpor-
ration companies is essential to he normal
development of the country. How far
the necessary Curtailnent OF railroad
expenditures, which must result for the
time being from the refusal OF the Inter-
state Commerce Commission to allow
a reasonable increase of railroad revenue
will affect the general business of the
country cannot foretell
If The result shall br TO bring about
a general reduction in wages and IN
materials and supplies the railroads IN
the end will suffer no more han the gen
eral public and in time all these things
will correct themselves.
Il am d firm believer that economic
laws will in the end prevail The rail
roads cannot successfully operate their
lines without sufficient revenue to en-
able them TO neei public requirement :
for transport ion. which in this country
1T IL prohahle that IN" railroads have
been eNtrGvagant IN their expenditures
TO meet the constant public demands Tor
increased facilities of eTegy kind. They
could possibly have limited the cost of
terminals hut every city III ~" land has
demanded al the railroads that il terminal
facilities should not alone he adequate
to Imee transport alton problems hut
should he ornamental and attractive in
order 10 meet the public desire for big
things
President T. u Underwood of the Erie
said:
Il am NOT surprised II was a foregone
conclusion in my mind his decision is
going Ia cost the public dearly II was
stated Ivy the papers that the shippers
had won great victory. The shippers
were not really concerned AT all Rail
road revenues come from the great con
sun,inC puhlic and that l. whore a burden
imposed w this finding viii rest II
would hav. been better for the consumer
il fair ueed, ot the carriers had been pro-
>iGsd fo-
Not having the money To spend the
railroads will not buy equipment or pro
ieci extensions eNcep; where the need Of
such j. urgent. just aS few men will
be given employment as are absolutely
required 10 operate the lines and Keep
them in repair"
\ isked II the decision would make any
immediate difference i'll the Erle'S plans
TOR improvements Mr.. Underwo ood said:
game for IA long time in the hope that
the commission would allow us to increase
revenues and make it easier to provide
funds. We must continue along the same
lines"
Roswell Miller, chairman of the Chi
cago Milwaukee and ST. Paul. said;
~The Interstate Commerce Commits
sion will have to bear the burden which
will result from its decision. and ] am
much mistaken if the burden will be
the commercial interests which opposed
the advances and pursued penny wise
and pound foolish policy Nice-Prcsi-
dent Edward w. Mckenna of the same
70 the whole country. If the railroads
had not anticipated substantial increases
in rates." he concluded. advances il
wages would not have been granted. ano
were before the increases in rates were
asked for
President William A. Gardner of ths
Chicago and Northwestern said: I'VE
shall keep right on in our endeavor te
rates.. President W. C.. Brown of th'
New York Central said: -The decision i.
great surprise and ppointment.
Daniel Willard of the Baltimore and Ohic
said: Il hope it will develop that we wer,
ali wrong and that the Interstate Com
merce Commission is right. As | see i
there Ia only one thing for us to de- tc
put into practice the Brandeis greater
efficiency system. There are only two
ways by which We can reduce expenses
buy less material and pay less for wha
we get The decision will result in cur,
tailment of our plans for improvement
We can't expect 80 large a revenue with
which to 60 ahead"
WAsHINoroN. Feb 24.-The Penn
0yivania Railroad notified the Interstate
Commerce Commission to-day that the
company will not appeal from the com
missions sweeping findings in the in
creased rate cases and will forthwith
withdraw its advanced tariffs This in
formation was conveyed to The commission
by Freight Traffic Manager George T
Dixon of ofthePennsylvania lines. who called
the commission on the long distance tele
phone He added that the Pennsylvania
would not wait until March TO- the limit o
the period that the commission has granted
for cancellations. but would cancel th'
increased rates Immediately. He wa
advised that the commission woult
approve such action.
II is understood that the New York
New Haven and Hartford will adopt a
similar course. and the general belief her,
now is that most of the other roads vii
follow suit,