New-York tribune., 1911-02-24
| more rapidly than the additional mileage

more rapidly than the additional mileage
built
Commissioner Lane points out that the
Western roads have increased their sur
plus more than 100 per cent in ten years.
In an elaborate discussion Of the f1nan-
cial condition OF the various lines, the
opinion holds that "the carriers do not
need larger revenues for purposes OF
maintaining their credit or insuring them
against temporary adyersity.' The posi-
ton is taken in the opinion that. the rea-
sonable rate. as defined by the railroad
men, makes the traffic manager a states
man who controls the economic condi-
tions Of the country, setting az nauSht
our tariff laws and artifcially creating
markets ead centres of industry
In considering cost of operation, in
Guiding wages, materials and all else
that properly may be taken into ac-
count, the opinion holds that the cost
of the upkeep Of the plant and the re-
turn upon its value amounts to more
than three-fourths of the rate that is
charged for transportation. Railway
materials are found not to have IN
creased, fuel has increased slightly anu
wages considerably. However, the last
six months of the year 1910, in which
the new wage schedules were in effect
show for fhe carriers the largest operat-
ing income they have ever enjoyed III any
half year
In closing his opinion. when was
a6opted unanimously as the expression
Of the commission, Mr.. Lane says;
The Constitution Of the United States
guarantees the carriers against the CON
fiscation of their property or the taklhs
of the same without due process OF ld"'
Without this constitutional guarantee,
which is distinctively American, tor mere
property rights are more sacreoly sale-
guarded than in other lands OF more
mobile law, the railroads OF our country
are protected from injury OF any lastlis
character by the popular consciousness
that they are essential to the industrial
life of the people. To harm these roaos
is 10 injure ourselves. Our laws 90 Hot
seek TO establish dominion over private
cspital for any other purpose than 10
make sure against injustice being done
the public and thereby make such capl-
tai itself more secure. ,.a,.
We are dealing here with d'rncult
problem, involving mu'ttuonous ldtl9
and an infinite variety of MODIFYING con
ditions, which make the establishment VI
principles and the framing OF poIlcles
matter of slow evolution. congress hae
ia{d down q few rules. These rules we
are attempting to apply. IT Is nor loI us
TO saw that we represent the govern
ment and may have policy OF our own
which in anv degree runs counter 10 the
mower granted 10 us or the duIy lln-
posed upon US. .I,s 80,
The railroads may not look to this trl-
bunal 10 negative or modity the en-
pressed will Of the legislature ny
have laid before us the facts and the
law which would make for Justlnca
tion of their course in he increasing OF
rates To our minds their justhcatlon
has not been convincing.
Southwestern Rate Decision
In the Southwestern case. the opinion
in which was prepared by Commissioner
Harlan. the amount Of the increased
revenue involved in the proposed ad-
vances was not so considerable as In
either Of the other eases. The increases
were defended by the carriers, however
on the same grounds of insufficient rev.
enues and inadequate returns on invest
ments
In the general rate revision made by
the carriers the first class rate from ST.
Louis 10 Texas common points was In
creased from 81 81 to 81 47, and corre-
spending increases were made in the
ether classes. The commodity rates also
were substantially increased, and the
record shows that the great bulk Of the
Texas traffic moves under commodity
rates, only about per cent moving un-
der class rates.
The effect of the increases was 10 raise
the rates not merely from st. Louis 10
Texas points, but from all points east of
the Mississippi River to Texas points.
Commissioner Harlan finds that the
carriers in the Southwest have not pros
pered as have many in other parts Of
the country and, in common with the
other commissioners, declines to disturb
the increased first class rate. The opin-
ion fixes the second class rate at 81 %
lllSltbI " Ct ~ oliu tlOcfS lle Oiu iottfo
restored on the remaining classes AS
tie lower class rates affect an inconsid-
cradle volume of traffic, the contention
of the carriers is substantially sustained,
the decision reached being recognition
by the commission OF the fact that their
financial condition was such as to jus
tify an increase in their revenues.