Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1914-08-04

it will take railroad men a long time
TO figure out. Roughly computed it
may be said that having asked for a
per cent. increase IN freight rates the
pelitloning carriers get perhaps IL
per cent. or enough on recent aver
age volume OF traffic TO add S15,000,-
900 to their net earnings. Practical
~ all OF this advance Is allowed on only
about one-third Of the total freight
tonnage involved IN the application
for higher charges, and less than half
the territory covered by the thirty
five Eastern railroad systems Is af-
fected.
In that district known as Central
Freight Association territory, which
lies north OF the Ohio River, between
the Mississippi River and line drawn
from Buffalo through Pittsburgh TO
Wheeling the carriers have received
substantially the per cent. advance
asked for IN class rates and some
commodity rates. A traffic man
railroads get I'm the way OF rate adj
vances, for much Of the decision Is
made up Of denlals OF increase. There
Is nothing for the New England rail-
roads and not much for the trunk
lines except as they benefit through
interest IN the earnings OF the roads
IN Central Freight Association terri
tory.
Commodities on which higher rates
are not allowed constitute the bulk Of
Eastern railroad tonnage. For exam
pie, about half the freight of the
Eastern carriers is coal, one OF the
commodities on which rates are left
unchanged
Still IL IS patent that the railroads
get something in the way of sanction
for higher rates. and this, in view of
the Interstate Commerce Commits
sion's previous attitude, Is a great
deal. What Is more, Il is one OF sew
eral indications OF a changing atti-
tude on the part Of the Governmental
OverlOads of the railroads which must
encourage tho owners of the railroads
and their arrangements to believe that
official pressure upon them is lessen
ing. Il was altogether likely that this
would be the consequence of the re-
cent disclosure to the Interstate Com
merce Commission of the tremendous
power Of life and death which it had
over the railroad system of the land
and the dawning sense of responsible
ity which must have been impaired by
the discovery.
In the Minnesota, Missouri River
and Shreveport rate cases the SUI
premc Court. by successive stages,
clearly defined the Interstate Com
merce Commissions authority as SUI
perior to State interference with the
railroad rate structure. I'm the opin-
ion which tho Supreme Court render
ed less than two months ago in the
so-called intermountain cases the
Federal commissions power over the
rates was shown TO be so absolute that
it could originate them. Congression-
al enactments and judicial interpreted
ton have in effect made the Interstate
Commerce Commission the traffic
management of the railroads Of the
land, and now a bill is pending IN
Congress which, If II becomes a law
will make the Commissioners tho
managers of railroad finances We re-
fer 10 the Rayburn railroad securities
bill
Possibly a reason for the commits
sions delay I'm reaching its conclu
sion in the Eastern rate case is sug
gested by the evidence lately furnish
cd Of the vast scope Of its RESPONSE.
lility for the future welfare of tho
railroads; of the part which u mus
play in assuring inducements for the
investment of capital that will guar
antee the steady expansion of trans.
portatiOn facilities required by the
country's growing traffic and pOpula-
ton
The Eastern rate case was sub
mitted in May, and il was afterward
that the Shreveport and iutermoutair
cases were passed upon by the Su.
preme Court and the bill 10 make the
commission the regulator Of railroad
financing began to take shape. Moth,
ing is more probable than that tn,
commissions consideration of tn,
Eastern rate case was influenced b,
the new vista of its functions ant
duties. Indeed there are tokens
in the opinion which FIVE Of the sever
Commissioners finally agreed upor
that the Federal regulators no Longer
regard themselves as filling ex
clusively the role of protectors of tn,
public against railroad aggression;
championship favored by demagogi,
politics but not calculated to preserve
! railroad solvency.
Appreciation Of the railroad stu
alton produced by political oppres
sion is more than limited at i'm thu
commissions advice to the railroads
| 10 prepare their reports in such
way as tc show the need of higher
passenger fares which the States
have regulated to minimum
Whether the railroads can accom-
plsh anything in this direction Is no
cc so much present Importance al
! the fact that the Interstate COmmercl
Commission deems passenger rev
1 enues inadequate, and so signifies tn
changing attitude Of public regula
ton toward the railroads. There
even a more convincing intimatiol
of the commissions new conception
of its relations TO the railroads il
these admissions and declarations:
THE operating income OF the rail
roads in official classification terri
tory (the entire territory covered b
the petititoning lines) taken as
whole is smaller than is demandc
IN the interest OF both the genera
public and the railroads
IL development is to be accom-
plished with private capital. in con
formity with our traditions, nothin
can be more certain than that tn
facilities will not be provided exceI
under such a system of regulation a
viii reasonably permit n fair rotur
on the money invested.
1T is cur duty and purpose to ale