The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-02-24
MYAl

uLleT'H1 conclusion. ne CONCLUSION
reached here extends therefore no further
than the facts upon which II is based.
The decision in the Western trunk
lines case. which was written bv Com
missioner Lane and concurred in by tho
six other commissioners. is an eIaboraln
review Of the railroad situation III the
United States aud more especially OF
| those IN the territory west of Chicago.
The opinion says that the outlook Tor
the carriers is decidedly bright and that
| Ivy reason Of the enforcement OF the rail-
road rate act the railroads in the last few
! yeas have been protected from eaGh
other
As a result" the opini on adds "the
| revenues of the carriers have increased
and their dividends and surplus have
Increased a. in no other period OF their
| hist tory
! In regard to the necessity for main
tanning the credit of the carriers the
opinion savs:
| "Th"rc is 10 better way to measure the
faith Of the people i'll an enterprise than
by discovering how large volume ot
| their savings they have been Wiling TO
invest in it
| Figures are then given 10 show that the
| railroads of the United States in ten years
| foated mortgage bonds on their proper
ties To the extent of S4.50O Ooo, 900.
| "Thcs" figures" adds Commissioners
| Lame. dl' 'ui
| roads borrowed upon mortgage in one
| decade more than twice as much rs the
national debt AT the close Of the ciyi!
wa"
Treating Of six typical Western roads
the opinion finds that they have borrowed
over SIjO .OGO. .OuU IN the last ten years.
| The commission finds that the cost OF
material and supplies has not increased;
that fuel ha, increased somewhat and that
wages have increased considerably
! There follow, then in the opinion az
analysis of the revenues Of several typical
carriers for the six months ended De-
cemher 81. 1910. during which time the
supposed increased expenses We're IN
effect The opinion adds
\, tho close Of the SIX months July 20
| December n. 1910 these six carriers had a
larger income from operations bv over
5000. .upo than they enioved In the corrc-
spouGinr s.g months o. 1909 and $50 600 ,uuU
more than IN the first half of 1910.
How much more ar. these railroads en-
titled 80 for the same service in the year 1871
than they were in 1910 or 1909? Are they TO
have the benefit OF all Increase in traffic A.
well ~ of economies which they make and
the shipping public bear every added eX-
rcn-e. If these Increased rates are 20 be
allowed. must We not say with Mr. Ripley
that IN the past all rates have been TO low
and that by force Of our power to protect
those carriers against intense competitions
between each other We will aid in the raising
OF rates onto a higher Level?
The report on the Western roads closes
with these words:
We do not say tina, the carriers NAV not
Increase their incomes We trust they
may and confidently believe they viii
II the time does come when through changed
conditions il may he shown that the fears
are realized or approaching realization.
and from a survey OF the whole field Of
operations there is evidence of movement
which makes against the security and last =
Ing value of legitimate investment and an
adequate return upon the value of these
properties. this commission will not hesi-
ate TO give It's sanction 10 increases which,
will bs reasonable II il the law that rates
shall be just and reasonable and alike to all
for like service Constituting this law the
courts have given general direction in a
number OF cases. and by all standa rds that
have been set this commission all of it,
| members con"urrnE hpdS the proposed
rates to he beyond the limitations placed
by law upon tn. carriers
In the Southwestern case the commits
sion sustains advances made about two
years ago To Texas points by the Santa
F. railroad and about sixty other roads
represented by the Southwestern Tariff
Committee. The Commission orders only
a few reductions, the statement being
| made that the carriers that were made
defendants have not on the whole pros
pered as have many carriers in other
| parts Of the country"
The decisions bring to a close, 30 far
| al the commission Is concerned cal,.,,,
that have engaged its attention for more
than six months. One of these cases is
| that in which the Attorney Gene raj
| secured his midnight injunction holding
up the increases. These are the case.
also in which President Taft intervened
and persuaded the railroads voluntarily
to postpone the effective date Of their
| Increases pending decision by the Inter-
state CnDnme roo l'nnnAiasinII