New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-11
Railroad Regulation Is All Right, but
1t Must BE Fair and Intelligent.

When ex-President Taft and President Howard
Elliott Of the New York New Haven & Hartford
Railroad said at Boston Saturday night that gov
eminent regulation of the railroads has been
carried too far they expressed only the common
feeling of the country. The people who have
suffered from the policy Of starving the railroads
land practically every other industry has feIt
he effects of depression and oyer-retrenchment
m the basic industry Of transportation are
yetting mpatient with regulation as it has been
,nwiselv practised Railroad earnings and credi;
have been impaired and the ability Of the car
riers to do the work Of the country has been
.essened. The resulting stagnation hits pro-
iucers and shippers almost as hard as it does in
gestors in railroad property.
The belief is growing that government regula-
ton has been a failure. Yet it would be fairer to
saw that regulation has failed not because the
theory was bad bu. because the application OF
the theory was unintelligent. The Interstate
Commerce Commission has in recent year taken
an extreme view of its duty TO protect the public
against unreasonable rates. 1t has tried 10
divorce the interests of the public from the IN
serests of the carriers and acted on the false no.
ton that anything done to reduce the earning
mower Of the carriers must correspondingly bene-
IT the public. As matter of fact there Is
strong community Of interest between the rail-
roads and their patrons, and the true mean IN
regulation is TO make the prosperity Of the trans
portation industry serve as basi5 for prosperity
in other industries.
The federal commission is to blame for setting
the evil example of destructive regulation. That
example has been copied by the various state
commissions and by the state legislatures. Con-
eress has also initiated it in refusing fair pay
to the railroads for carrying the mails. Al
though through the expansion of the parcel post
service the volume Of mail matter carried has
been vastly increased. Congress wants to put the
burden Of this extra traffic the railroads with
out granting anything like corresponding COM
pensation.
There are signs that this vicious attitude is
about TO be modified so far as the Interstate
Commerce Commission is concerned. That body
has started to reverse itself. 1t quickly discOv-
cred the absurdity of its decision Of August last
on the application of the Eastern railroads for a
> per cent increase in freight rates and handed
] down a corrective decision last month. 1t Is
about to consider an application Of the Western
roads for higher rates, the granting Of which
has been made necessary by the same changes IN
economic conditions due to the European war,
which were held to justify the Eastern increases.
Even when the commission refused the applica-
ton of the Western roads for freight rate in
creases in February, 1911, it laid down this
rational principle
II the time does come when through changed con-
ditions 10 may be shown that their fears as TO the
lack of incomel are realized or approaching, rear
zation and from survey of the whole held or oper-
ations there is evidence Of a movement which makes
against the security and lasting value OF legitimate
investment and an adequate return upon the value
Of these properties, this commission VIII not hesitate
20 give its sanction 70 increases which VIII De rea
sonable
That may have been intended four years ago
simply as a pleasant rhetorical flourish. But tho
time has certainly come for the commission &c
make it a general rule of action.
The regulation which the railroads and the
country need is systematized, constructive regula
ton. The interfering power Of the state com
missions should be whitfield down to minimum
Legislation state or federal, imposing new bur
dens on the railroads should be referred to the
proper regulative board with instructions to pro
vide new railroad income to meet them. Wage
mediations in which the federal government par
ticipates should be made effective only after their
added cost is put where it belongs-on the snip
pers. The present haphazard system of control
should be made orderly and efficient The rail-
roads do not complain of regulation per Sc but
only Of poor regulation. All they ask AMI need Is
an intelligent use Of the undisputed power Of the
government T. protect the public in its relations
with them and them in their relations with the
public.
Af,;o;nal Work for the InemDloyed.