The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-21

nifty any oflcial view Of the merits Of
tho question under consideration, but
Il 10 a way Of evincins reluctance on
the commissions part to face the issue
squarely.
The postponement Is itself disap-
pointment In all business and financial
circles where II Is realized what good
could follow an early and favorable
determination Of the matter. 1t IL even
more Of a disappointment because II Ia
to some extent corroborative of other
Indications that the commission does
not propose, II II can help 1t, to insti-
tute departure from past practice and
sanction the idea that the railroads can
resort to general elevation Of the rate
structure In order to deal with the prob
lem Of steadily rising costs OF operation
and steady additions to the weight Of
fixed charges.
More or less informally, but none the
less authoritatively. the railroad CON-
munity was given to understand a few
weeks since that the Interstate Com
merce Commission regarde 1t as highly
desirable to have new Federal leglsla-
ton relating to the issuance Of railroad
securities before II could feel itself fully
equipped to dispose Of the question Of
rate advances. In the meantime the
branch Of inquiry into the relations
between the line carriers and the In
dustrial plant railroads, with the con-
illusions tentatively announced. was
rather convincing proof Of the COM
missions intention to put OF ruling
In the Eastern rate case.
Under the same heading could be
classed the recent observations Of Com
missioner PRouTy. who has been placed
In charge of the work OF railway valua-
tion commanded by Congress. One gets
the Impression from Commissioner
PRouTY's utterances that not until valu.
alton has been completed. say within
the next ten years, will the Interstate
Commerce Commission be altogether
competent to decide whether and when
freight rates should lie raised.
At the same time the case Of the rail-
roads may not be altogether as desper-
ate in these circumstances as might be
specifically inferred. Some compensn-
tons may he involved In the procras.
tinations OF the commission and some
offsets provided to the disappolntments
OF the moment. II may. for example,
dawn on the official mind that II there
are 81 many good reasons for delay In
regulating rates upward the same rea-
sons should tell against regulating rates
downward. Something will have been
gained If the Interstate Commerce Com
mission has been checked In its career
Of rate reductions against which rail-
road operations have had to contend.
Again. II the commission has the
courage Of its convictions formed In
the tap line investigation and cOmpels
the railroads to make full charges for
services at Industrial plant line connec-
tions and to discontinue improper al
iowances. the earnings Of the railroads
will make a large direct gain in net.
Furthermore. there are some signs In
Congress that the new legislation which
the commission desires will take the
shape Of asserting over the railroads
that paramountcy Of Federal control
which the Supreme Courts decision In
the Minnesota rate cases indicated to
he the logical deduction from the inter
state commerce power. II Congress 30
legislates the railroads will be eman-
cipated from a vast burden of intoler-
able and conflicting regulations imposed
by State laws and cOMmission rulings.