The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-06

| maintained by private capital II X an
pears that the hope OF profit In railroa.
operations has been cut orr Money no
only does not have to 60 into ra!lroa,
Investment but 1t cannot be coerced int
Investment as long as there Is free
dom OF opportunity for the profitable en-
ploynlent OF funds In any other direction
IL Ia calculated that the average
per cent rate Increase for which tn,
Eastern roads have asked will add abou
| $40.OOO,000 to their net earnings. Th
amount though considerable. Is Of II,
Significance compared with the cffec
| which would sooner or later be producet
on the Investment market by proof o.
the ability OF the roads under govern
| mental sanction to adjust their rates {,
the exisencies Of their various obligation,
TO the public and to roilroad securit,
| holders.
The whole principle Of private oropert,
is at stake In this matter IL the rail.
| roads needed the advance OF rates wher
they asked for II In 1910 they need Il
far moro to-day. but not only because o.
the money Involved They reed 1t be.
Gauss OF the assurance which concession
OF the Increase will convey that the coun.
try Is not ready to surrender 10 com
munistic theories which seek to sub.
stitutc = mystic ideal Of service for tte
hope OF profit as an incentive to the
spirit OF enterprise.
In very pronounced degree me East.
ern rate case Is tes. OF our American
civilization. 1t Is a test Of American
capacity Of common senec and fairness
and Of the extent to which enlightened
s.lf-.lterest Ii constituent of the Amer
lean character II IL a test VI Ameri-
can institutions. for n propitious con-
dit.ons for the conduct OF railways BY
private capital are not to be politically
permitted. there Is no alternative but
Government ownership. which must In
~vitably transform tho republic
The railroad question Is no longer one
Of simply preventing Illicit private gain
and private expressions against which the
severity Of Government regulation now
furnishes sufficient safeguards.
Incidentally the rate case has como te
furnish a very pressing occasion for serv-
Ing the public good. so general has he.
come appreciation OF the issues Involved
In II that the likelihood Of a determination
favorable to the railroads has been more
han anything else the support OF the Sc
curties market and Of general trade and
Industry against forces making for q
worse state OF hard times than the coun-
try is already suffering from.
The belief in the Justice Of the railroad
cause as presented to the Interstate Com
merce Commission has sustained the hope
OF the banking and business community
that the commission would render n Judg-
ment which would supply very desirable
stimulus to the betterment OF values and
volumes
on the other hand. the rate case has
become SO much n factor In the financial
and business situation through public per-
suasion of the merits OF the railroad pc
tition and expectation of the beneficial
consequences to issue from an outcome
favorable TO the carriers that a fearful
shock must be administered II the case
'hould end In denial Of tho railroads
eouest for relief.
Here Is a fact which tho Interstate
Commerce Commission must take Into
consideration together with all the sta
tlstics and arguments submitted. Thanks
very largely to the prOcrastinat!ons OF the
commission In matter that II really
our years old. the first petition from the
Eastern lines having been filed in 1910. Il
Is now no longer possible II II ever was
possible since the petition was renewed
20 refuse the railroad prayer for some
rate Indulgence without result Of wide
spread disaster.
Compared with all tho foregoing con-
siderations there IL nothing else of recent
occurrence and forward bearing that de-
serves extended consideration ut the mo-
nen,, but there are circumstances prop'-
ious for Improvement In the security mar
kets and general business II the conclu-
sion OF the rate case furnishes tho needed
impetus.
The forthcoming crop report will serve
notice of a splendid agricultural outlook.
even granting that at this season Of the
year crop forecasts are rather premature
The ordinarily difficult turn o: the hrst
financial quarter has been made with the
worlds money markets exhibiting ircreas-
ing relaxation.
Critical juncturcs abroad. created chiefly
by politics. are being slowly bu; steadily
overcome. Moreover there havo been
enough hard times both ut home and
abroad to inspire eager anxiety FOR a re-
turn to normal activities II the necessary
ENCOURAGEMENT Is vouchsafcd.
II may of course be that n verdict for
the railroads In the rate case will make
a Less speedy change for the better In
general conditions than Il denial OF the
railroad petition would make for the
worse. Indeed this Is quite probable, be-
cause lately there has been more antici-
nation OF tho best than fear of the worst.
and IL frequently happens when eSpecta-
lions are deeply engaged the expected oc-
is found TO have been quite
fully discounted 10y the fnancla, and husi-
ness community. at least for the time
being
TO be sure the stock MARKET. for er
ample has not been obviously engaged
IN a process of discounting decision for
the railroads. but tho fact that quoted
values have resisted the pressure OF much
adverse news and many adverse consld-
eraiions in the meantime may denote
kind OF discounting which viii exhaust
tho immediate possibilities OF the event
hoped for.
Moreover. with the rate case out Of the
way. there will DO direction of atten-
ton to other matters which contain to a
degree obstacles to q sus-
tained and early general renewal OF en-
ierprising endeavor. That there are still
factors in tho cateRories OF politics likely
10 restrain enterprise II shown by the fail
lre OF the Federal reserve bank organl-
cation committee to designate reserve cit
les and districts In n fashion which would
afford guarantees that the new banking
system was 10 be kept FREQ from TO-
cal menace.