Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-12-19

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! TIHE rate decision is certain to stimulate
/ i prosperity Railroadlng Is second in inn
| portance only to agriculture in the United
States. The sums invested in it are so vast
that their status sympathetcally affects all
money markets and almost all of the great
productive industries. Unless the railroads
are prosperous the country cannot be pros
porous. Even bumper crops cannot over
come the depression that results from lean
ness in the railroad world, and this has been
abundantly proved in the last few years.
OF all the States in the Union, no other Is
much affected by the decision as Penn
sylvania The great iron and steel indus
tries have been dormant during the stag
nation in railroad progress. There have.
been signs here and there Of revival, es
pecially since the war began. but It has been
realized fully that until the railroads could
again become heavy buyers there would be
rebound to normal conditions. So far
unemployment in this State Is concerned
the decision Is likely to have quick and
benehcent effects
The exceptions in the general advance al
lowed are well taken The coal-carrying
roads have not been able to show starva
tion. on the contrary, their earnings have
been amply sufficient. and there Is no dis
interested rate expert who would feel that
ing It handsomely. 1t may be doubted II
the roads seriously expected advances in
this class of freight. The exception, never
theless. reduces the estimated yield from
the increases, and instead of an increased
revenue of $50 600, 600 not more than $40, 000,-
900 will be received.
II is not usual for higher rates to stlmu-
late shipments. The economics of railroad
ing is peculiar however, and there need be
no fear that the per cent. advance will
reduce the volume of freight. Instead there
is likely to be an increase, due to a number
of factors, not the least important OF which
will be the general Improvement in all lines
Of business induced by the greater purchas-
ing power of the roads.
It ls difficult to follow Commissioner
Clements argument that the need of the
roads for money is no reason whatever why
they should get 1t. 1t is very vital reason
for the whole theory of rate-malSlng be-
comes worthless when once the fact is
established that in practice the resulting
revenue is insufficient. The Government does
not guarantee profits, but It certainly does
guarantee not to leglslate profit out of quasi
public business by arbitrary exaotons.
The roads find themselves faced with
new responsibility to the public. They must
make good in service and management.
They must rid the country OF lne hlnu vi
which has sent two or three
systems into bankruptcy amid clouds of
scandal. The better roads have been the
vicarious victims of moral delinquency in
the conduct of other roads.
In the matter of economies, the public is
likely to Insist that the Postofflce hereafter
pay the roads for services rendered, and
do not In order to make a good showing,
shunt onto the shoulders of commuters and
others the burden of paying to compensate
for the refusal OF a Government department
to play fair. The general opinion viii be-
too, that the decision introduces a new factor
into the communication situation, though not |
into general passenger rate conditions, of
such Importance that a rehearing by the !
Public Service Commission, now set for early |
in January, is more than ever necessary.
Unless all signs fail and the reasoning of
commercial leaders is grievously at fault, the |
nrst big shove to the prosperity car has
been given.