Grand Forks daily herald., 1915-07-07
HIGHER RAILROAD RATES.

railroad rates are to be higher The
decision OF the Interstate Commerce
commission to permit the eastern
roads to make material advances in
their rates is to be followed. as was
generally expected. by similar advan-
ces In western rates. 1t Is predicted
that the aggregate increase will
amount. for the road affected to some
thing like s1oo.oo0,0O0 a year.
The campaign for increased rates
has been q long one. The demand of
the railroads has been supported by
the statement of certain demonstra-
! Bile facts The chief Of these is that
all Of the expenses of the roads have
increased very materially during re-
cent years. Wages are higher. The
cost of all material is higher. The
demands of the public, as enforced by
state and national commissions, have
! imposed greater cost on the roads in
the way of increased train service,
better equipment and better accom-
modations for passengers and goods
on trains. The total cost of all these
things has been reduced to several
sets Of tables, the accuracy Of which
has been questioned but Of the fact
that 1t does cost more money, and a
great deal more money. to operate a
railroad now than it did few years
ago there Is not the slightest room
to doubt. The facts are there. And,
their cost OF operation being greater
the railroad men say that it is only
fair that they should be permitted
to advance their charges for service.
As against this 1t has been main
tained that while there had been an
increase in operation, the railroads
themselves had been guilty of waste
and extravagarfce. and that there was
some truth in this was also pretty
clearly demonstrated by the testi-
mony OF railroad men themselves. 1t
was argued, therefore. that It was the
duty of the roads first to eliminate
this waste and cease this extraya-
Eance, and reduce their expenditures
to the basis of actual business needs
discounting the practices Of contract
prevailed in some cases. and a num-
ber OF other expensive practices which
had no place in the management
of a business enterprise. Then, with
these economies effected. it it were
shown that the roads could not make
ends meet there would he a legiti-
mate basis for application for in
creased rates.
Apparently the Interstate commits
sion has struck a balance of some
sert between the conflicting claims,
and the roads are to be granted an
increase. Without attempting to de-
eide on the merits of the conflicting
contentious, it may be observed that
1t is necessary for the prosperity of
the country that the railroads should
be In a prosperous condition. No
other business activity touches SO
closely the welfare of the whole peo-
pie. Without adequate railroad fact
lities there can he no proper develop
ment of any new section of the coun-
try, nor any proper maintenance of
the prosperity of the older sections
And good service by bankrupt rail-
roads is an impossiblity. Our rail-
roads are enterprises which depend
entirely on the investment of private
capital. We cannot compel that in
vestment Men invest money where
they believe that the investment will
yield them reasonable .eturns They
will not invest it otherwise. There
Is no reason why they should. The
railroad which is losing money can
not borrow money for extensions.
Unless it is paying ordinary running
expenses. and a. little better it can
not maintain its property in proper
condition, much less make improve
ments. hence the service of the un-
profitable road is sure to deteriorate.
For these and many other reasons
the country whose railroads are un-
prosperous is itself in bad way