Grand Forks daily herald., 1914-12-19
SATURDAY. DECEMBER 10. 1914.
THE RAILROAD RATF. INCREASE.

THE RAILROAD RATE INCREASE.
The rate increase just granted to
the eastern railroads by the interstate
commerce commission ought to have
an excellent effect on business
throughout the country. The subject
is an exceedingly complicated one.
and 1t is utterly impossible for the
layman. and it has appeared to be al
most impossible for the experts, to
know whether the roads ought to
not. The roads desired it. naturally.
Some we'll informed people believed
that ii was necessary for them i'll Or
der to make ends meet and to provide
for extensions and betterments. 9th
crs held that the roads themselves
were able, by cffecting economies
which were quite possible, to bring
their net earnings to the point desired.
Tho subject has been threshed over
for a long time. II is fair to assume
that the commission has studied it
carefully, and 1t is reasonable to sup
pose tnaL llS rullnS is JuSt.
Regardless. however, of whether or
not this increase was actually needed
In order to prevent the roads from
suffering loss, it's effect must be
wholesome, for Il situation has been
created which has caused a very large
number of people to believe that it
was necessary, and it has been urged
far and wide as the one thing need
ed to place the business of the coun-
try on it's feet This being true, and
follows that the business which has
been waiting for it must be benefited
Money for railroad purposes ought
to be more easily available. and at
lower rates. for with the increase
the roads will be in a better position
to meet their obligations. Men do not
like to loan money where there is
small chance Of getting 1t back. with
reasonable compensation for the use
of 1t. A business concern that Is
running behind, and which has every
prospect Of running behind indefinite
ly, finds It difficult to borrow. Tho
complaint has been made by the rail-
road people that their earnings were
so small in comparison with their
expenses that their bonds were not
attractive investments, hence extern
sione of all kinds have been postpon-
ed. 1t ought to be possible. in the
light of this decision. to do moro
work along this line.
Still further. the increase should
tend strongly to remove from the
feeling that the attitude of govern
ment toward business is one of ire
concilable antagonism. That feeling
has been entertained. and it has been
very strong. 1t has had q. depressing
effect. Following the statement by the
president in his annual address. that
the administrations program Of bus-
iness legislation is practically COM
pleted. the rate increase should have
a very stimulating effect.
It Is estimated that the increase
will add some $4,000. 900 to the an
nual income Of the roads affected
Naturally. the shippers of the coun-
try will have to pay that sum, and u1-
tlmately. the charge will be passed
sver to the consumer Railroad rates
ought to be fair and reasonable. They
ought to he high enough to permit
those who have taken the risk of in
vesting their money in the railroad
business to make fair earnings on
J their investments. and at the same
time to provide amply for good main
tenance and the necessary improve
ments and extensions. When the peo-
pie pay this they are simply paying
fairly for service rendered. They
should be willing to do that. and we
believe they are willing. when the
: subject is presented fairly to them
7 and they understand it, The people
should not be required to pay more
than just charges for this or any 9TH
er service. But of vastly more i'm
( porfance than the precise amounts
paid is the just distribution of those
rates. If rates are adjusted on a fair
basis. SO that one individual has no
improper advantage over another, nor
one community over another, the ad.
dition or subtraction Of small per.
centage is of little account. The great
trouble with transportation charges
in the past has been that they were
: not equal. they they did discriminate,
and that certain persons and 1ocali.
Ties were favored at the expense of
others. Gradually this condition is
disappearing. to the advantage OF
both the general public and the rail-
roads. Now, if the new ruling places
the roads in better condition to ham
die their, business. much will have
beesl gained.
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