New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-06
Commissions Delay in
Rate Decision May Be
Due TO New Haven.
WASHINGTON FEARS
RECEIVERSHIP EFFECT
General Draft Said To Be
Ready. but Withheld for
Psychological Reasons.
Lon I'd TrLhnnc Raro.1 !

From The Tribune kurcsN.
Washington. July with POSSIBLE
ties of a decision in the rate case,
crisis in the negotiations between the
government and the New Haven system
and report TO the Senate by the In
terstate Commerce Commission regard
ing the recent investigation OF the
financial affairs of the New Haven, an
eventful week in the railroad world Is
probable.
The delay of the commissions de-
cision In the rate case has been the
subject of much speculation as 10 the
administration attitude toward the
railroads. although the President has
made IL clear that he would not inter-
fere. despite rumorS that he favored
the desired per cent for carriers In
the official classification territory.
Just what the cause Of the delay has
been has not been officially explained,
hut an impression obtains here that
the commission wants to be able to
Justify it's decision and at the same
time conform 10 the administration
views.
" the arguments 10 the commission
counsel for the railroads pointed out
that operating expenses had in
creased faster than operating revenues.
the railroads having earned in the year
ended June 80, 1913, less by Sl6.3ll 81
than an the year ended June 30. 1910,
the ratio of operating expenses and
taxes TO earnings during the period in
creasing from 1853 per cent to SIS per
cent.
Owing to a possible desire OF the
commission to obtain data relative to
tho revenues and earnings for the fiscal
wear ended June 80. 1914. before an
nouncinc decision. there may be still
further delay. There have also been
hints in official quarters that settle
Irent of the New Haven case is wished
before an announcement OF the rate
decision.
Administration Worried.
The administration Is disappointed
and not a little worried over the pres
emit prospects of failure in the negota-
lions for an amicable adjustment OF
The New Haven dissolution case, as
the Attorney General now apparently
faces the necessity either OF ming a
civil suit. as he threatened 10 do II
an agreement was not reached by July
Is, or of backing down and leaving
the situation Just as II was when the
negotiations began.
Il is realized and feared by the ad-
r,inistration that the filing Of suit
against the New Haven. resulting in a
receivership for the road, would have
a depressing effect upon business con-
ditions throughout the New England
states and elsewhere, Just at time
when President Wilson is doing his
utmost to he optimistic and create the
impression that an era of prosperity
is in prospect Therefore. the admin
istration. as we'll ss Attorney General
McReynolds individually, may be placed
in an embarrassing position within the
next few weeks. provided the MasSa-
chusetts Legislature does not enact &C
ceptabie legislation 10 permit the di-
ycrce OF the Boston {; Maine from the
New Haven.
Some further embarrassment Is
caused tie Attorney General by the
fact that from all accounts the New
Haven officials have kept faith with
him in the matte" of carrying out tho
agreement for the disinteCratiOn OF
the system. reached six months ago.
The barrier IN the negotiations is the
aeeming unwillingness Of the Massa-
chusetts Legislature to pass a bill ac-
ceptable 10 the New Haven's eXecu-
tive committee Thus far Mr.. Nc
REYNOLDS has regarded the contro-
versy as being strictly between the
Legislature and the New Haven. but
if ne keeps his threat he will he
forced TO take sides after July 10 if
the legislation is not enacted and to
determine w'uca side H. in the right.
Mc,2eynolds Silent.
Until there is some definite devel-
opment IN the situation the Attorney
General declares he VIII remain
silent a : TO what he will do. Before
ne takes any action. however, he will
doubtless seek the Presidents approx
al At present it is no. altogether
certain that Pre- sidcnt Wilson is thor
oughly in accord with the Department
OF Justice toward the New Ha"en case,
il being REGARDED as highly significant
that he did not check the FolA INES
legation of the New Haven and the
examination IF Charles 5. Mellen. as
'ir. McReynoldf has urged.
Because of the friction between Gov