New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-25
National Interest Demands an In
crease of Railroad Rates.

...,,-o,ds for a per cent increase in freight
r.,s. the weight Of the evidence was all on the
sd. o, IN. railroads. Only one witness appeared
70 ounose an increase, Mr.. Clifford Thorne' "no'
,sr-..sntattve Of the moribund Granger sent-
r,sr+ ~ the Middle West has for some years past
o,. rd..ed Mr.. Brandeis In championing the
theory that the proper thing for the railroads 70 20
is TO pay dividends not out Of earnings but out Oh
surplus capital
The only serious hostility encountered TO an IN
crease OF freight rates has been that suggested IN
the opestions OF some Of the Interstate Commerce
commissioners. This opposition has been based
largely on the strange idea that, having reopeneo
the CPS. chiefly because transportation conditions
had suddenly changed for the worse since the out
break of the European war, the commission should
now decline to consider the effect Of the war as
factor making for higher rates. II Germany mao
not declared war on Russia few hours oe1ore Iile
commss,on's decision Of August 1 was handed
,,o,rn tbers wonld have been little reason for
prompt reconsideration, and the railroads would
certainly not have obtained it on any outside snow
ing Of cause The disturbances TO business follow
ing the war invsidated the argument which the
commission used to justify its refusal three months
ago 10 grant the full increases asked. What logic
an there be- then, in limiting that the railroads,
which are the especial wards of the government,
are in the same box with other industries over
which the government has no control and to which
il owes no special protection, and must suffer
equally with them the Inconvenience and losses
due TO the war:
The testimony Of President Rea showed that
even dsregarding the caamitous effects Of the war
additional facts have been established since August
to warrant giving relief to the hard pressed com
mon carriers. When it made its decision the com
mission did not have the complete returns Of rail
road operations in the fiscal year 1914. 1t had
10 use estimates in part. The full returns show
that In the last fiscal year the volume Of business
was only 31s per cent below the highest leve-that
reached in 1928. Yet the return on property
investment was at the lowest figure for fifteen
years-lower even than in 1898 and 1899 which
wears the commission had excluded from considera-
lion because they covered a period Of unusual de
preston for the railroads Moreover, the returns
for July and August of this year have shown de
crease Of per cent in gross earnings against q
decrease of only S1S per cent for the fiscal year
ended with June Yet in 1874 the railroads
earned only 500 per cent on their investment
II is the duty Of tho Interstate Commission TO
see that the railroads make fair living and are
enabled TO maintain their service and their credit
Government regulation has for its aim to raise the
level Of railroad efficiency we'll to protect the
public against overcharges, INSTRUMENTATION in
dustry has therefore been partially nauonalized
II lie cruel Jest to intimate as one of the com
missioners did in bis questions to witnesses, thai
the railroads have no claim on the govern
rnent for relief from the hardshps caused by the
war than have the cotton growers, to suggest
as Mr.. Thorne did, that II the government allow:
the railroads to increase freight rates at this juno
ture it should also require every hen in Iowa tC
lay an egg every day and make good to the owner
the value OF the eggs which any hen may fai
10 lay
That is the great fallacy which underlies tho
reasoning Of the advocates Of the policy Of keeping
the railroads half starved. They want the gov
eminent TO take an iron grip on the common car
rers when il comes TO holding down rates, but tc
keep hands OF when it comes to providing enough
income TO keep the railroads out Of the hands Of
receivers The government has no control over the
cotton planter the egg raiser. They charge what
ever they eau get for their product 10 the open
market They take their chances with the law OF
supply and demand. But that law is suspended
for tho railroads, aud the government undertakes
10 say that the public shall never be required to
pay what the traffic will bear The commission
has in consequence two-sided responsibility. 1t
must protect the carriers as well as the public and
II is matter Of indifference, when it comes to
suppementng the falling income Of the railroads,
whether tue DISTURBANCES causing the decline are