The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-06

hTOuSn tno fananl4 Canal. IL VIII nevo
no easier time In adjusting lake and
raiiway rates d the circumstances Of
transportation nov created. The rail-
roads will have even u harder time and
the public will gain nothing in the long
run from the mbar rassment which will
DO innicted on the carriers.
There is no reason why In m in
stance Of lake and rail routes Congress
should not leave 1t to the Interstate
Commission to protect the
public Interest through the Intelligent
exercise Of authority to regulate rates
and service, but Congress, az the ST.
preme Court has inferentially intimated
In some OF the great railroad decisions
or recent years, has not been altogether
mindful OF its responsibilities toward
the capital invested in railroad enter
prise n toward the general business
OF the country which Is dependent on
the continuing provision of capital for
the Increase of railroad facilities. II
Is this watch makes the investigation
proposed by Senator Underwood one
Of the most hopeful developments OF
great practical In the immedi-
ate political situation.
A few weeks ago Clifford Thorne.
chairman OF the Iowa State Railroad
commission and Ollie of the most indc-
fatigable crusaders against any scheme
OF specific relief for the railroads from
the severities OF oppressive regulation,
said before the railroad valuation con-
ference at Philadelphia that 80 long
az private ownership continues the
hazards Of the business should be borne
by private companies. However. II
regulation exists 1t must grant adequate
war to investment" This formula
FOR reward In meaningless unless II rec
ogniEes the extent to which the hazards
of the railroad business have been po-
ILLEGALLY augmented.
Senator C~rderwood's proposed inquiry
into railway regulation should be broad
ened TO cover the whole field of regula-
ton by the States AZ we'll es by the ma
ton. The Supreme Court has made II
reasonably clear that Federal authority
over the railroads IL potentially exclu-
sive and all that Congress has to do to
make Federal regulation actually exclu-
sive Ia to extend the scope OF Federal
Jurisdiction by Legislation. II IL not the
Interstate Commerce Commission alone
which has imposed a burden on railroad
capital. Indeed the greater burden has
probably been inflicted by the States.
ewman Erb. speaking last month before
the Toledo Transportation Club. said:
Railroad systems to-day generally
traverse two or more States and are sub
jet to conflicting Legislative and govern
mental control, and for the past ten
years have been the subject Of harassing,
III considered and In most cases unreal
sonahle restrictive legislation. During
the last winter session OF the Legislatures
Of the several States 1907 bills were In
troduced affecting railroad operation and
management, OF which 1877 were enacted
into law. Mos. OF these bills resulted,
and were perhaps so intended. IN adding
burdens n expenses unnecessary for
the safety or comfort Of passengers or
for the expeditions movement OF traffc.
This was one at a time when II was
recognized by the President. by CONNER
c!al bodies n by the public generally
that the railroads were already over
burdened. Tn Government itself set an
example of unfairness. calculated to ag-
gravate the conditions which brought
the railroads OF the country to the verge
Of financial disaster. "A little moro than
a yea ago, by It's treatment OF the mat
ter OF the parcel post. 80 Think OF
our great Government sending 500 .000.-
900 OF gold as mail matter TO avoid pay
Ing for It's transportation"
II 10 highly gratifying OF course to
have so encouraging an event TO con-
slider as the Baltimore and Ohio refund
ing bond transaction. Apparently some
thing lika $3.50. 00O. 900 q subscription
was received last week for this SOC, cOo.-
900 issue OF ) per cents. which began to
be quoted AZ once AZ a stif premium
over the public Offering price. 1t was
ev!ncei that investment confidence had
derived enough inspiration from the posi-
ton of the none market and from the
recovery IN railroad earnings to make Il
possible 10 finance moderate railroad re-
u~uirements OF capital with issues of
long time tonds and that recourse 10 the
vicious exped!ent of short time note
financing was approaching it's end.
This Is excellent 40 far as 1t goes,
but how much more the investment
situation would mean II railroad reguls-
ton offered scope TO private initiative
and enterprise to build for the futur. In
anticipation OF reinunerat!ve profits. II
has often been said OF late years thai
railroad expansion ~ no longer limitless.
but wh'l- great additions To railroad
mileage ma not be required an immense
provision OF improved transportation
facilities can yet ba supplied. For
example. what could the railroads not
do to forward the country's business in
terests II II were possible for them TO
raise the capital necessary TO substitute
electric traction for steam power. What
O stimulus 20 industry In every line would
lie furnished by the engagement OF the
railroads IN such n transformation OF
their equipment.