The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-20
Commission Government on Trial.

Commission Government on Trial.
Hearing IN the rcopencd Eastern
rate case having begun before the In
terstate Commerce Commission, It S
timely TO observe that the proceedings
are fraught with incalcuable possibill-
ties for public good or harm in the
present Iuncture OF American affairs
1t can be no longer pretended by the
commission. that 1t Is chiefly q judicial
body, deciding questions OF rates within
the narrow limits of concerns affecting
carriers and shippers alone and in ac-
cordance with the dusty precedents Of
legal Interpretation. The whole theory
of commits ion government to which
fresh political subscription has been
given by new legislation enacted in
Washington Is being subjected to the
test of an unprecedented opportunity
70 demonstrate the adequacy of gov
eminent by commission 10 meet the re
quiremcntS of business conditions. how
ever they may vary from the crcum.
stances of peace TO the vlcissitudes Of
war.
The case Of the railroads stands re-
vealed to-day in the real aspects of It's
relation 10 all American enterprise.
The European war has shown how de
pendent all business Is on the work
ings of the machinery Of finance
through which capital is raised and
expended for the conduct and exparl.
sion of business. The provision OF cap.
ttal for the railroads and It's eXpendl-
ture has been one Of the most imnor-
tant departments of American finance.
and operations in this department have
come TO a standstill. Tho signal for
resumption which Is being awaited -
a ruling by the Interstate Commerce
Comm sSon reversing the conclusions
reached in the Eastern rate case, de-
cided on the eve Of the war abroad.
and granting to the railroads permis-
sion to protect their credit through in
creased charges for service.
THE SUN submits here few quota
tons pertinent TO the issue on which
the Interstate Commerce Commission
has been asked to pass:
The proper maintenance and complete
efficiency OF tho railways are
indispensable TO our whole economic nfe
and railway securities are at the heart
OF most Investments, large and small
public and private, by individuals and
by lnstltutions."--FrO President VIII
SONS letter OF September 10. 1914, TO the
chairman Of tho Chesapeake and ohio
RdiiiCuV
There ara some evidences OF dlspo-
sitlon on tho part of those In authority
TO realize that great Injustice has been
done in the gu!se OF regulation, and that
II Is time to call a halt but The relief
which the railroads need cannot come
until this disposition shall be Transmitted
from mere expressions OF frlendlness into
positive remedial measures. Prom the
latest annual report OF e, p. RIPLEY,
president OF the Atchison, Topeka and
Santa Fc RdHWnU
THE situation Of the Wabash Is not
unique Its position 10 IN the path which
all OF the railways Of the country are fol
lowing in varying stages OF progress
There can be but one OF two outcomes--
disaster 70 the railways and all the rail-
ways represent In their relations to In
vestments, savings, Insurance and to gem
eral business, as well as TO public re-
Quirements and convenience, or an intelll-
gent reversal Of the policy which has car
ried 80 far beyond tho interests and de-
hands Of tho people and so far beyond
tho remedy for evils sought TO be cor
Tected The gravity OF the situation Is
recognized aud tho responsibility for its
solution is shlftlLF TO the puJ.tc tc,dlss
which have been endowed by law with
tho ample powers whose exercise must
determine the destincs OF our railways"
From the statement explaining the NTH
drdWdl OF the Wabash Rdiiroad reor0an-
lsdtion plan from the Missouri aud Illinois
Public Scrrioe Commissions.
Taking tho figures OF the entire coun-
try. one finds that the holdings Of railroad
bonds by savings banks four years ago
comprised 80 per cent Of the total bond
holdings; they now comprise 40 per cent
Those whose work Hes in the
railroad no,d regulation, operation or
financing have TO do with tho largest sim.
gle industry In the United States. an In
dustry that represents capitalization OF
100000, 100000, or more than one-slxth
OF the nations entire wealth, In DEALING
with the American railroad industry one
deals not only with immense figures hut
with Immense possibilities. From an adj
dress by Mr.. \, NJ. HARRIS at the annual
0onUonttou Of the American Rdnkers A $50
oidtton last tccck IN Richmond, Va.
THE industry ranking next 10 agricul-
iure Ia Importance, and more dependent
than any other upon the genera; invest
mont fund, is the industry OF transporta-
tlon. II the earnings above operating ex-
psn.ss Of all tho railways were turned
into n common fund, all interest and dlvi-
ocnd payments being suspended. the fund
o. created would not be large enough to
mako Tho extensions and improvements
mat are required 20 keep the railways
VI 10 the growing requirements OF this
country Expansion In all Of the other
industries Is focused on tho railways
anu requires moro service from Them