Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1914-08-04
LETTING UP ON IHE RAILROADS.
CFrom Tho New York SUM

the carriers can enlarge their net
earnings by following some at least
Of the commissions Recommendation
The ofiiclal criticisms Of the conduct
Of railroads, which the decision con
tains I'm less quantity than will suit
the railroad haters and baiters, are
Of much less consequence than the
leaning of the whole decision toward
regulation relief from inadequate in
come. Let II be noted. further, that
the two commissioners who dissent
ed did so on the ground that in
creases IN rates should have been gem
orally allowed.
We do not imagine that the public
Is interested much in the technicali-
ties OF the Eastern rate case. These
and their application can be left to
the experts. What most people care
about is its broader aspects as a dec
laration Of public policy. This, in
the last analysis, is what the commits
sion was called upon to make and
what in effect II has done. How far
1t has gone can best be demonstrated
by comparing the present conclu-
sions of the commission with the out
come of the former case, decided on
September %, 1911 For all practi-
cal purposes the two cases we're iden-
teal.
In the new case, the one now de-
cided, there was a more pronounced
direction of railroad attention, evil
dence and argument to the broader
questions of the proper relation which
should obtain between regulation Of
railroad revenues and the incentives
of private capital to invest in rail
road enterprise for the assurance of
satisfactory and expanding service.
Every important discussion OF the
eastern rate case in recent months
made it apparent that the Interstate
Commerce Commission was furnished
with an opportunity TO declare a con
structive public policy; not i'm the
language OF theory alone, but in the
applied terms of sanction for rate in
creases which would demonstrate
whether progressive regulation of the
railroads was compatible with their
support by private capital or wheth-
er government ownership would have
TO be considered an early and inevl-
table consequence of political tenden-
cies.
Government regulation had seemed
to show that rates might remain sta
tonary or could be lowered, but that
they could not as a whole be raised
that politics would not concede an
expansive principle Of rate making
which would enable the carriers t.
HuIhf rtHf q
charges TO rising costs Of doing bus
mess. This was what rendered the
present decision so momentous in the
prospect.
In the earlier case the commission
traversed every point raised in iustifi.
cation of the advance then proposed It's
summarized conclusions were as fol
lows:
There is no evidence which estab
fishes the necessity for higher rates
/ The probability is that increased rates
will not be necessary in the future. II
actual results should demonstrate that
the commissions forecast is wrons
there might be ground for further
consideration of this subject. Befor,
any general advance in rates can b.
permitted it must appear with reason
able certainty that carriers have cx
ercised proper economy in the purchas,
of their supplies, in the payment o
their wages and in the general conduc
of their business. These class rates hav
been continuously in effect for the las
thirty years. The commission is no
disposed to subvert the condition
which have become established. Car
riers have frequent occasion to var,
their commodity rates. The commits
sion is not disposed 10 subvert the con
ditions which have become established
Carriers have frequent occasion t.
vary their commodity rates. The com
sion dislikes to tie up, by hard and fas
-orders, these commodity rates, and ha
concluded, as to all the rates involves
in this proceeding. to require the de
PENDANTS TO cancel tar advanced tar
ifs on file and TO restore their fOrme
rates.
The difference in the outcome of tn
two cases is apparent and significant
Commission government is not proves
success by the judgment Just rem
dered. but il has demonstrated a certain
capacity to respond to the requirement
of business conditions if subjected Ion
and persstently to the battery of har'
facts. The trouble is that so much bust
ness effort is needed to make an i'm
preston upon il. The Eastern railroad
have been four years getting the Inter
state Commerce Commission to abando
theory and grant some concrete indul
gence of their eNigencies.