The Washington herald., 1914-10-31
The 1. c. c. and 8. EneW.ucy.

i
| That the situation following the war, taken in
connection with the conditions shown to exist prior
thereto, has created crisis in railroad affairs few
will deny. The railroads executives and others have
testified to it, and Mr.. Clifford Thorne who has
appeared persstently in opposition the general
advance in rates, admits that to-day the railroads
have some foundation for their claim" How viii
the commission meet this emergency?
While it is believed by many that in the So
called per cent case which was before the COM
mission for many months definite conclusion might
was taken that fact does not in itself offer sufficient
reason for the indiscriminate criticism which has
been aimed at the commission of late from many
quarters; its action in granting rehearing at the
earliest date possible under the law, the expedition
with which It has taken the testimony and the
prompmess and brevity with which it has proposed
argument by counsel be made, should remove any
doubts to its sincerity and appreciation of the i'm
portance of the questions before that body.
1t has been urged by many that the commission
should permit the railroads to advance their rates
in order that general business might be improved,
and when the members of the commission have point
ed out that their of action very clearly
defined by the statutes and that they could only ap
prove ot such rates fair and reasonable, and
that II y could not take action simply upon desire
to bring prosperity il has been said that either the
law itself too narrow that the commission was
not willing to assume proper responsibility. In the
industrial railways the commission announced
definitely its conception of its powers and responsible
ity concerning the very questions that are now be-
fore it. In that case after asserting that the rail-
of revenue, it stated: This having been done, the
commission upon adequate showing of the need
OF additional revenues Will not shrink from the re-
sponsibty of sanctioning such increase in rates, as
may be required to bring reasonable prosperity to
railroads. so far this may be accomplished under
rates and charges that are reasonably Just alike to
shippers and to the carriers" Again, in its opinion
rendered on July 20, the commission approved OF .
general increase of per cent in rates consider
able portion of traffic moving in Central Freight As
socation territory thereby recognizing the principle
that the railroads have contended for The instances
cited would to show that the present law is in
terpreted by the commission sufficiently broad to
cover the at issue.
In the earlier hearing the railroads presented con-
dtions which they urged had brought crisis in their
affairs and from the facts before It the comnlssI
found that the railroads income smaller than IS
demanded in the interest of both the general public
and the railroads. and expressing the anticipation OF
an early improvement in general business condltlons
proposed measures OF relief winch II ultimately
ample would require long period for their realiza'
Since then conditions, instead of getting better,
have become worse particularly perhaps largely be-
cause of the general European war, and feeling the
situation acute the railroads asked for rehearIng.
In the closing statement in the case, made by
President Rea of the Pennsylvania Railroad on FIJI
day last, after citing the conditions which had come
about since the war he urged that the existence OF
crisis in the affairs of these railroads longer
be questioned In support of his argument that
grave emergency existed at the present time, Mr..
Willard speaking for the railroads, made state
ment the significance of which has not appeared to
be generally appreciated The closing paragraph OF
his statement to the commission
Finally, it is respectfully submitted that what
the outcome concerns these railroads mlght
have been had there been no war. as a matter OF
fact there is a and grave emergency now eN-
It hardly necessary to suggest that II the
G0% eSneInde afte Of ali facts
approve the tariffs requested and should II
changed and the emergency had passed, and should
' Whole
diton as to earnings, maintenance charges and re-
capital obligations to Justify a recon-
sideration Of the action prayed for, this COM
such reductions might be fair and reasonable
and of the opinion that the carriers would not
oppose such action by the commission when condl-
tiOns such have enumerated shall have been es-
tablished.
In these words Mr. Willard clearly recognized the
principle that if the commission urged at the
present time to grant such relief as possible within
its powers because of a great and unforeseen emer
gency, it would be only proper when the emergency
has passed. should it develop that the higher basis of
was then necessary in order to give the rail-
roads fair and reasonable return that they should
be reduced and it would seem that in the present
emergency the commission might well avail itself of
this suggestion. By permitting a uniform advance
of per cent of all the rates in the territory the I'M
mediate necessities would be met The slower
processes proposed in the commissions previous
der of correcting Objectionable inequitable prac-
tces and the adjustment of abnormally low rates,
could be proceeded with. If then upon the basis of
rates so established the railroads should
devoted the public use, the commission should or
der such reductions would be fair and equitable
1t would seem as if the commission with the CO.
operation of the railroads. might devise method
which would permit of the carrying out of such
policy-Baltimore Sun