The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-03-24
An End to Overregulation.

he dppnCatlOn OF eSplcsS SOHlPdHiSS ~
the Interstate Commerce Commission for an in
crease in their rates for carrying parcels IS an
other step taken by the community for relief,
which we trust will be permanent, from the im-
practical and disastrous attempts to restrict and
govern general business made the result of the
unfortunate crusade upon which the public en-
tered few years ago. These attempts have COM
prised chiefly reduction in charges for all kinds
OF public utility service. In certain cases the re-
duction has been accompanied by an entrance of
the government itself upon the service in compe-
ttion with private enterprise. Now we believe 1t
has become clearly apparent, even to the officers
of the government itself and to the members of
the political party which most active in Sc
curing reduction of rates. that the reduction
has been altogether too rapid and that a body
blow has been dealt at the prosperity OF the coun
try by overreguation of business affairs.
With the express companies there has been in
effect since the Ist of February last year
nous Cut in the charge for the general transporta
ton OF express packages. Ono OF the large OK
press companies the United States, has been
forced to lquidatc its affairs in consequence. The
principal remaining companies have united in
petition to the Interstate Commerce Commission
showing that for the ten months since February
T. 1914 there has been a decrease OF Sill Soc, 900
in their gross earnings, OF which SS,5oo,ooo was
apportioned to the express companies proper and
So, 900, 900 borne by the railroad companies
under the usual division OF such financial arrange
ments. The companies request the Interstate
Commerce Commission to make detailed cNami-
nation of their books in order TO verify these fig
ures. They declare, and there is not the slight
est doubt that they prove, that they have
made every possible effort to introduce economies
and have cut down the cost OF handling traffic
very considerably. This has developed new bust
ness TO extent, but nevertheless tic net loss
of the express companies is still such that it is
manifest that in the long they, too like the
United States Company, must be forced TO the
wall unless they allowed higher rate OF
compensation for the work they perform.
We hold the opinion very strongly that the
Interstate Commerce Commission will grant the
relief that is asked for or a good portion OF it.
But the matter emphasizes once more the essential
defect in tho program OF regulation OF business
by the government. 1t has not resulted in facili-
tating business or increasing business Instead OF
promoting the public we-being it has injured
the public wcll-bcinc. Railway nilcage-that is,
the building OF new railway lines and the cxtcn-
sion of old lincs-haS not at all kept pace with
the population and general business of the ooun-
try in the period covered by the regulation mania,
and the ability of the railways 10 the public
has greatly dctcrIoratCd. Investors do not care
to buy railway stocks under these conditions, for
it is obl ioms that il tho conditions remain
changed general government ownership is the
only means Ivy which the service of the railways
can he continued And so far as that goes, gov
ernmIcnt ownership OF railways and OF all other
public utilities has proved economic failure
wherever ii has been tried.
In the case OF the PostoffCc Department there
is no ono 50 ignorant not to realize that
the huge deficit in the finances of the department
is due to the inauguration OF parcel post service
performed at unrcmuncratvc ratcs-that is TO say,
Of an attempt by the government to do for the
public at less than cost work that previously
done by private companies. Just as the railroads
found that they could not carry freight at the
rates that prevailed up few months ago and
have a sufficient margin OF profit left over, and
Just as the express companies that they must
go into liquidation unless they arc allowed to
charge moro for the work that they do, the
government tScl. finds that il is not exempt from
the general law OF business, and that it cannot
carry parcels at less than the cost thereof unless
it is heavily reimbursed by government appro-
priation OF funds raised by taxation
VIC mention these matters not in dcspairng
way, but hopefully VIC believe that the Demo
cratic leaders in Congress and President Wilson
scrvatism in the matter OF fixing rates for public
utility corporations. More than this. the people
of the country have also discovered the fact.