Evening star., 1913-11-26
The Railroad Rates Plea.


has before 1t an issue of vital i'm
portance to the transportation world
and 10 the country at large in the
plea of the railroads east of the Mis-
sissippi and north of the Ohio and Po-
tOmac rivers for authority to increase
rates on all classes of freight traffic.
approximately per Cent. The railroads
base this plea upon the ground that at
the present rates they are unable to
meet their fixed charges and to pay
reasonable dividends and provide for
necessary extensions. They point to nu-
merOus increases on the expense ac-
count during recent years, notably the
successive increases in wages effected
through virtually forced arbitrations
under federal auspices, the gradual
rise in the cost of all lines of construc-
tion work, the doubling of crews under
state laws. the adoption of expensive
methods of safeguarding traffic. This
process has been accompanied by a
diminution rather than an increase in
rates. under the jurisdiction of the In
terstate commerce commission and now
these railroads ask for a new adjust
ment. stating their needs at approxi-
mately an advance of per cent upon
the rates as they prevail today.
There is no denying the force of the
railroads contention that they have
been for some years under stress of q
continuous process of expense increase
without corresponding rate increase. 1t
may be that the interstate commerce
commission. after thorough investiga-
ton of the matter, will hold that the bal
ance has been struck and that the ratio
OF rates and expenses Is now correct or
II may hold that the pendulum has swung
too far against the right of the railroads
to earn reasonable dividends and author
ize somewhat of an increase to restore
the equilibrium The principle involved
is that of striking the true medium,
with consider alton both for the railroad
stockholders, whose millions are in
vested in these properties. and the rail-
road users, whose millions are spent in
transportation rates.
II is quite as undesirable to force the
railroads too far under a burden Of in
creasing expenses as to permit them to
go too far in the direction of high rates
and excessive profits. The essence OF
federal regulation of rates is to MAIN
tain the right relationship between
costs, rates and profits. and the present
application sets in motion the process
sirable from the point of view of the
railroad user as from that Of the rail-
road owner. For 1t Is to the interest
of the public that the railroads should
prosper sufficiently to improve their
lines and extend them so as to grant
increasingly valuable service. Railroad
stagnation, from whatever cause, is
harmful to the people, and an en-
lightened public sentiment should al
ways favor the extension to the trans
portation lines of a fair scale of earn
ings, which cannot be assured save by
the adoption of fair scale Of rates.
The application Of the railroads for
ne right to increase rates is always
received with more or less. skepticism
because of an old-time belief that a
railroad must necessarily be prosper
Gus 1t may be doubted whether there
IS a general public appreciation Of the
eumu ative pressure to which the rail-
lads OF this country have been sub
leeted during the past few years In the
way OF compulsory wage increases.
rev doubling and equipment improve
menL The interstate commerce COM
mission is in the best position to Judge
render decision which takes into ac-
count the right of the railroads to earn
. reasonable profit, the right Of the peo-
pie TO secure reasonable rate. and the
desirability of securing an equilibrium
of forces which will permit necessary rail-
road extensions without unduly taxing
the shippers of today for these develop
ments for the benefit of the future.