The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-12
Majority on Commerce Com
mission Lack Courage,
Says Daniels.
HE DENOUNCES WRECkERS

"SShiN'I'N AUX lI.-iUe NV
state Commerce COMMISSIONS decision
on the application Of the Western car.
ricrs for increased freight rates. which
was handed down to-day. was disap-
pointing to railroad men. The COM
mission granted some relief. but It was
sought by the railroads.
The Western railroads. on the ground
That the revenues were Insufficient.
asked for increases Oh certain con.-
modities. which would yield s7.604.OOO
additional each year. The commission
does not say how much the advances
Will mean, but Commissioner Daniels. IN
a strong dissenting opinion. holds that
the roads, revenues will be augmented by
not more than 81. 900. 900. This increase
will amount to only about one-fourth of
l per cent. OF the total freight revenues
Of these carriers for 1914. while the APP
plication called for advances amounting
to about IL per rent.
To-day's decision IL only one Of
several applications which the Western
o"' '"N' BNifIttk bul u IN III
rs a good index OF what the commits
sion's attitude is to be In the other
cases. Thu most disappointing feature
for railroad men was that the Commits
sion failed TO express any opinion as to
the adequacy or inadeuuaCy of the
present revenues Of the Western roads
This was the big fundamental point 1t
issue and the commissions failure to
meet " was made the occasion for a
notable attack by Commissioner Daniels
In his dissenting opinion. .
Danicls's Bluntness = Precedent.
Never before has "a member Of the ON
mission expressed his opinion SO bluntiy
In regard to the findings OF the majorit'.
He charges the majority with incon-
s~istency and with failure to meet
cou~rageously this question. OF vital i'm.
p%ortance to the railroads OF the country.
Mr.. Daniels. who WAS at one time
n Princeton University professor. mas
on former occasions attracted atten.
ton here by his forceful decisions. He
calls for the prosecution OF the mer
who are responsible for the wreckine
OF railroads. naming the Rock Island
and the Frisco as notorious examples
OF financial mismanagemcnt. Mr.. Dan
iels declares that the time has come
to make guilt personal and no longer
to judge the question OF railroad rates
by considerations of individual in.
stances OF corporate Acknowledgement.
Commissioner Daniels contends tina
the majority of the commission takes g
backward step. In the recent Eastern
advance rate case the commission helt
that the net operating income of the
carriers in official classification terri
tory, considered as a whole. is smallei
than is demanded in the public in
terest."
II was that paragraph in the com
missions decision in the Eastern ad
vance rate case from which the rail
roads derived their chief comfort. ever
beyond that contained in the actua
granting of substantial increases in
rates.
Daniels Draws u Parallel.
commissioner Daniels contends that the
showing made by the Western roads
was more unfavorable even than tina
made by the Eastern carriers. Yet thu
commission as regards the Western
carriers contents ITSELF with merel!
finding as follows
The relative profitableness OF their
business. taking the roads as a whole,
has declined since 1901 and the main
cause effecting this result has been an
increase In expenditures not Offset by
an increase in receipts.
The commission holds in its major,t,
report:
From the financial videnc We find
that the credit OF these carriers as a
whole has not suffered an impairment
not ommon to comparable industrial
enterprises that in common with other
borrowers. corporate and Governments.
these carriers are required to pay on
the average a higher percentage than
heretofore for the use OF capital that
these carriers In common with COM
parable industries generally are paying
higher prices for many materials and
!. higher wages for most kfnds OF b {:
that these carriers in meeting in
creased costs with increased prices
for service are subject to GER
tain disabilities not similarly en-
countered in many other indus
tries: that the relatively equal de-
preston of the carriers credit with
credit generally is not evidence OF the
adequacy or i~nadeuuacy of their pres
ent net revenues hat net corporate
income cannot be accepted as a meas
, ure OF the adequacy W in~adequacy OF
present rates and that the increas-
, ing percentage of bonds to their total
capital obligations indicates a grow
ing d~isinclination to invest in their
! stocks and a growing unwillingness to
accept the prospect OF dividends as n