South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-01-30
RAILROAD RATES


A systematic campaign would seem
TO be on among the railroads fostered
by certain leaders OF business and
banking. stimulated by a certain
group Of newspapers and now as a fl
nal move brought before the attention
Of the public by billboard advertising.
10 direct public sentiment toward the
interstate commerce commission, TO
the end OF getting them TO allow the
railroads their desired five per cent
increase in freight rates.
Now as the matter OF freight rates
enters into the cost OF practically
every commodity that we purchase,
freight rates are lot more important
10 Us than passenger rates.
Now whether the cost OF doing
business to the railroads is SO great
that there is no reasonable margin Of
profit 10 tie stockholders should be a
matter of exact determination by the
interstate commerce commission. And
If the rates should be raised TO allow
them TO make a reasonable profit.
then this will be done.
But the arguments we have been
hearing that the prosperity Of the
country is dependent on this question
Of whether the railroads get the rate
increase seem not only sinister but
far fetched.
The prosperity Of the country is not
dependent on the railroads In any
fundamental study Of conditions it
must seem beyond contradiction that
the prosperity Of any country must
rest as a general thinE on it's product
i've capacity it's manufacturing and
farming. with such help as commerce
may furnish and mining may happily
augment
Take a primitive state of society for
example That the prosperity OF a
primitive village should rest on. not
the good fortune Of the tiller OF the
soil or the skill of the artisan. but on
whether the bearer Of burdens from
artisan 20 farmer and back be making
lots Of money so that ne may purchase
new horse or crude wagon. seems on
the face of it, rather absurd.
The country can not continually exist
on the money spent by the railroads
I'm improving or increasing it's equip
ment.
That a lot OF orders for steel cars
and rails and the like. sent out by the
railroads would prove "A welcome
stimulus to industry in a time of tenn
porary depression is true enough.
The country will prosper by the
growth and prosperity of any of it's in
dustries And no big industry can
feel "A healthy boom without affecting
other industries.
But before the railroads are grant
ed rate raises. steps should be taken
10 prevest officers OF railroads from
buying stock and equipment at one
figure and selling it TO the railroads at
twice the sum. That proceeding in
public office would be called plain
graft" and the authors would be sent
TO the penitentiary 1t is graft just
the same in the officers of railroad
and should be punished. They are
robbing their stockholders and Incl
dentally the entire country.
It is unfortunate for the railroads
that the revelations Of high finance
on the Frisco system have come 10
light just at this time. But il serves
TO point a moral
II we do not have public ownership
of railroads we undoubtedly will have
in the future such regulation OF them
as to prevent a road being looted by
its officers For the public has to
r,a,- tho hin for that Iootinp II is the
public's business.
When such a system of regulation
and supervision is established, the
railroads won't need 10 agitate for
rate increases. They will get them
when they are necessary. Then the
element OF speculation will be largely
removed and railroad stock will still
be a sound investment