Evening star., 1914-08-02
improvements which would have yielded
transportation economical
Suggests Investigation.

improvements which would have yielded
transportation economics.'
Suggests Investigation.
The commission also suggests that an
investigation be made with a view to de-
termining to what extent the cost Of con-
struction or Of acquiring properties or
capital, or Of operation is being in
creased through the holding by directors.
officers. or employees of interests In other
concerns with which the carrier has deal
ings,' and calls attention to the fact that
the compilation from answers to the COM
missions questions on this subject show
that a considerable proportion Of the
officers and directors of railroad COM
panfes have interests in such concerns,
including locomotive works. car manu-
featuring companies, steel and iron
works. coal mines. wire works. bridge
companies, manufactures of railway ap-
pliances. oil companies, electric machtn-
cry companies. glass companies. cement
companies. warehouse companies, surety
companies. railway publishing houses and
trust companies 1t also refers to a
further investigation into the subject
which is being conducted Independently
by the commission.
Sleeping Car Contracts.
THE commission suggests that all ex-
piring contracts with sleeping car COM
panies should be carefully reviewed be-
fore being renewed. The commission
makes no suggestions in regard to rail-
way mail pay. as that subject Is under
investigation by another branch Of the
government adding, 1t may be assumed
that If the compensation for the service
IS found to be unjust to the carriers re-
lief will promptly be afforded.
The commission concludes its report
by saying: We may justly feel proud
of the development Of our transportation
system Despite occasional discreditable
chapters the history of our railroads has
been marked by great achievements.
There is growing spirit among the car
rters Of cooperation with the commits
sion in Its efforts to enforce the law.
Future Full Of Promise.
with the application Of correct and
helpful accounting. the establishment Of
sound business methods. and better un-
derstanding by both carriers and the
public Of their mutual obligations, to
which we believe this investigation has
contributed. the future is full Of prom
Use. We see no reason why our Ameri-
can railroads should not enjoy a large
Just and reasonable rates
In his dissenting opinion Commission
er Daniels holds that the per cent ad-
vance should have been accorded gener-
ally. This opinion is based on the in
adequacy of the carriers, present rev.
enues to afford a fair return on their
property, and to attract such additional
investments as are required In the IN
terest Of the public. He qualities this
conclusion, however. in cases where the
carriers sought a higher per cent ad-
vance under the guise Of an increase OF
5 cents per ton, yet rates were specifically
shown to be fully compensatory. He
protests that the decision has been un-
necessarily delayed by merging with the
issue of rate advances an irrelevant In
quiry into methods by which carriers
may conserve their revenues without ad-
vancing their rates. He contends also
Central Freight Association teritority and
denied wholly as between the two
regions will prove insufficient to AFFORD
a fair and reasonable return to the car
riers for the services they perform.
Views OF Mr.. McChord.
Commissioner McChord's dissent. a
very brief one also. concluded this way:
Viewed from a commercial. geograph
ical or transportation standpoint, and In
the light of the facts of record, am
convinced that the reasons which impell-
ed the commission to approve certain
changes in Central Freight Association
rates apply equally to trunk-line rates,
and that the transportation conditions In
the two territories are not so unlike as
to indicate the wisdom of disstmilar
treatment of the rates proposed by the
carriers in the entire official classif1ca-
ton territory.
Asked 5 Per Cent Increase.
The railroads which applied for the
Interstate commerce commissions per-
mission to raise their freight rates
were the fifty-two lines in the terri
tory east of the Mississippi and north
Of the Ohio and Potomac rivers. Tho
increase asked was per cent. just half
the increase which these same railroads
tried to get approval of in 1910, but
failed.
1t was deemed that public sentiment
desired a prompt decision of the new
application, and the interstate COM
merce commission Immediately insti-
tuted hearings. at which President Will
dent Delano of the Monon system,
George Stewart Patterson, general coun-
sci of the Pennsylvania, and other
prominent railroad officials gave testi-
mony. Louis D. Brande.s of Boston,
representing the commission and the
SnlppeIS, was one OI tHe leduluk COuu-
sci in opposition
The contention of the railroad man
ayers was that in the last three years
the railroads had spent $500. 900. 900 in
new capital. but that in 1913 the earn
ings were $4,000. 900 less than in 1912;
that the greatest increases in railroad
expenses had come about by higher
wages, taxes and new investment in
the properties: that conditions were
such that the New York Central had
since September. 1913. been forced to
lay or $4,000 men. and 1t was strongly
intimated by some witnesses that I'M
less the situation were relieved the
railroads might have to accept gov
ernment ownership as the ony alterna-
tive.
The Opposing Contentious.
The opposing contentious were in ef-
feet that the railroads were constantly
enjoying higher revenues; that they
spent more on improvements last year
than any other year In history: that
one terminal alone. built ut a cost OF
$10S, 10000 900, would have built an en-
tire railroad from New York to Chi
cago.' and, above all, that the free
services which the railroads performed
for large industrial concerns. would.
K|I|ZIIIIZIz||z|I||IIIlI|ZIzIZzzIZIM