New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-02
II Won't Be Enough, but 1t
Will Help, Chorus Their
Presidents.
HAIL CESSATION
OF LEGISLATION
M Great Fund of Optimism on
Tap. but They See Signs
of Improvement.

loon inc uCNlSIOli vi '"N INV
..ote Commerce Commission on
the appeal Of the railroads to be
permitted to increase their freight
rates depends, say the leading
TRANSFORMATION experts OF the
country, the answer to the ques-
ton whether 1914 will be a good
wear Tor the companies.
They agree that 1918 was not
net earnings. decreasing in the
ACE Of increased gross and the
oractise Of the most rigid econo-
mics Now the railroads. through
their executives, declare that a
limit consistent with safety OF
ooeration and efficiency has been
reached in the matter OF economy.
The railroads expect that they
will receive permission to increase
rates : Der cent. This, railroad
presidents agree. Is not sufficient
10 meet the increased cost OF pro-
vidine transportation. but on the
principle that hall a loaf IS better
than none they will welcome It.
Aside from the probability that
they will be allowed to increase
rates slightly. railroad presidents
see two other bright spots in the
situation. One Is the certainty
that they will not be called upon
10 increase wages as heavily as
they were last year; the other, to
quote one president, that about
all the adverse legislation that
could be thought OF has been en-
acted and many Legislatures will
not meet this year.
BY President Underwood Of the Erie
Nothing can be said on the railroad
situation that is new. as l view it. An
encoura ging view is that railroads have
had about all the adverse legislation
due them and may now look for a re-
action This year the Pennsylvania
legislature does not meet. Ohio and
Indiana have biennial sessions. This
is their year off. 1t would be a fine
thing if the New York Legislature met
but once in two years. Why not adyo-
cate that?
The outlook for 1914 is for small
gross and net earnings. The ratio az
profits 10 gross earnings in the new
year will be disturbed more than here
tofore. for the reason that the expense
increasing laws now in full effect were
not in full force in 1918"
Everybody seems TO think the rail-
roads will be allowed 10 increase their
rates soon." said The Tribune reporter.
Won't that help"
That depends first upon the grant
ing Of the increase and second upon
the time IL becomes effective. Relief
al the end Of eight months, as has been
predicted. would not be a factor in the
fiscal year. so that we are first TO have
a bad fiscal year and later bad cal
endar year"
What effect on railways will the
opening Of the Panama Canal have?"
The opening Of the Panama Canal
as a commercial thing has an unknown
value. Personally. I think IL will help
some Of the railroads. If IT is true that
the new tariff admits foreign products
and the west coast Of the United States
imports direct some Of the imports VIII
have 10 be rallied TO interior points.
This may be freight that the railroads
otherwise would not have carried.
The wickedest thing in the railroad
situation is that the railroads are
forced 10 lay of essential men and re-
tain those who are non-essential. be-
cause the law Of the land conflicts with
me Law Of common sense. Railroads
are compelled by laws, put through 10y
i"oor unions. TO place extra men IN
telegraph towers and in train crews
where they are not essential
Railroads should be allowed 20 raise
rates. The effect Of a reasonable in
crease will n be felt by the consumer.
Tor example. If the coat YOU have on
was made IN New York the freight on
70 Chicago is six cents. It's increased
cost al a . per cent rate advance would
DO nearly three mills. three-tenths OF q
cent Is that 10 be noticed in the cost
q the coat? A per cent advance
means one mill more on a hat rom
Newark TO Chicago. Would that affect
The price? The fact is that an IN
creased rate would come i'm such inini-
'esimal bits TO the consumer as 10 be
Invisible.
NO business should prepay freight
merely taking upon itself load that
should be distributed among thousands
81 customers who 90 not feel the IN
crease. As a general proposition 4
Continued on third page. third column.