Arizona republican., 1916-12-27
UNLESS RATES ADJUSTED J. ].
 WILL CONTROL
Republican A. p. Leased Wirel

Republican A. p. Leased Wire]
 NEW YORK, Dec 26-Unless rates are adjusted to make revenues con- form proportionately to expenses, fed eral control of the country's railroads is inevitable. according to the annual report of the general executive com mittee of the Railway Business Asso- citation, made public here tonight
 If total revenues are not made ade- quate to total expenses the report states. mo question will long remain as between federal and state authority, because sooner or later the federal government under those conditions must take over the roads. In that case the states would lose all voice whatever and federal regulation, if any. would present the grotesque spec tacle of one political office supervis- ing another whose tenure proceeds from the same source of power as his own. Whoever omits from his prescription statutory obligation upon the commission to permit rates ade- quate to carry the national business and develop the country leaves out the essential ingredients without which the whole compound is futile
 The present law" the report points out. declares that each rate shall
 
 inatOry It is our purpose to recom- mend. that two additional elements be embodied in the statutory rule:
 That in regulating rates total revenues shall be permitted sufficient for total legitimate purposes.
 "2-That legitimate purposes em- brace the attraction of investment for improvements and extensions.
 we yield to none in favoring ef- fective federal supervision under con- ditions advantageous to the whole public. while insuring that the states may retain such jurisdiction as local safe government requires; but at the same time we emphasize this aspect:
 Every substantial increase in ton mage brings car shortages. Only 933 lineal miles of road was constructed in the calendar year 1915 and appar- ently the record for 1916 will barely exceed that figure, although the vol ume of individual activity and hence railway earnings is greater than in any previous year. Those who deal with investors continue as for several years past to report indifference of their clients toward railway securities except for refunding and for mortgage bonds, now rarely feasible, upon un- encumbered property.
 We approve abstentation by legis- lative bodies from dealing with rates. We see no exception in so costly an item as the eight hour law. The new legislation which we urge is that if at any time in any place rate ad vances should become necessary in the public interest authority and obligation to sanction them will explicitly reside by statute in specified branch of the government.
 The public interest-that is the yard stick proposed by the railroad leaders for measuring the provisions which they advocate. Responding in kind members of the Newlands com mittee have rivalled one another in keeping the discussion at that high level. Commercial organizations hav- ing membership in rty-eight states have transmitted to us declarations for a unified regulation where state regulation conflicts with federal. More than sixty such bodies have urged that the statute proclaim adequate earn ings the policy of the government. These signs at Washington and throughout the union we hail as a bow of promise. as the token of factor destined to work for prosperity in the future, affording in all years an adequate instrument of commerce and in lean years a purchasing power tending to mitigate industrial dis tress."