The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-07-27

| AIUdHy, ENculh6 coNAA>>A
Commissioner Harlan said, in his sep
arate opinion accompanying the inter
state commerce commissions mostly
adverse decision upon the railroads
application for q Is per cent. rate IN
crease, that this month-to-month and
purely statistical view Of the matter
seems to me to be wholly inadequate.
Nor do regard that course as alto
gether safe. We are facing a much
larger problem, and 1t must be ap-
preached in a much broader way II
We are to reach sound solution. The
wisdom of deferring full relief is not
lapparent to me. What the, country as
la whole needs is much larger
terminals, more tracks, more locomo-
! tives. This enlarg ement OF our facili-
ties is not required merely to meet
the exigencies growing out OF the war
but to keep our transportation facil1-
ties up to the measures of the coun-
try's growing volume of business"
In the prevailing opinion Of the COM
mission 1t was asserted that recent re-
ports OF earnings had not conformed
to the gloomy forebodings" of the
railroad managers at the beginning OF
the year. On this presentation the an
nounced plan was based, to observe
the statistical position Of the roads
from month to month until the end OF
October. and then give relief II 1t
should appear, from observation, that
IL was needed.
Emphasis was placed on Commits
sioner Harlan's opinion, shortly after
the commissions decisiong was made,
by the report of one of the largest
railroad systems in the country, which
showed net earnings for the elapsed
part of this year tremendously and
alarmingIy diminished because of
enormously increased expenses. That
showing demonstrates the made
uuacy and unreliability Of month-to-
month observation.
The plain fact Is that hostility to
railroads persists, in the public mind.
That state of mind influences the vari-
our bodies-state commissions. legis-
latures, and the interstate commerce
commission-which control and re-
strain the earning capacity of the rail-
roads. They fear public resentment
of even fully justifiable concessions to
railroads.
The attitude OF large part Of the
public toward the railroads Is partly
product of contemplation of the mag
nftude of their operations, and OF re-
ports of gross earnings, without con-
sideration Of the magnitude of their
service and their expenses; and part
ly of government activities against
corporations in general, from which
the railroads suffered greater dlsad-
vantage than most other corporations.
Those activities stimulated the belief
that the railroads were "malefactors,"
were robbing the public. Agitators
have held up to view the statistics
showing that in a year the railroads
had gross earnings Of so many hun
Idreds Of millions OF dollars, hut they
never referred to the hundreds OF mil
lions that they must pay out for wages
for extensions and improvements, for
taxes, for new and additional equip
ment. The average citizen who pays
railroad fare, or the shipper who pays
for transportation OF freight, regards
only what he pays out and the gross
earnings of the railroads. He does
not consider their enormous and con-
stantly increa sing expenses. He looks
upon the money that he pays as so
much added to the wealth Of the rich
railroads" He complains quickly
enough when railroad facilities are at
all deficient; he does not consider
tnat TO keep laCllllleS up U require
ments necessitates large and contin-
uous outlay, and that the railroads
have not magic means OF providing
themselves with funds. Also. he has
an idea that somehow the railroads
are simply public utilities, for the ben
eft Of those whom they serve; that
they have no rights as business enter
prises entitled to reasonable gain.
Com mjssIoner Harlan also brou ei1t
TO attention the fact that while from
1885 to 1910 new railroad construc-
ton steadily increased, since the lat
ter year 1t has steadily diminished.
lin other words, our population and
commerce have largely expanded. but
I there has been no expansion relatively
speaking, in our transportation facil-
I tiles"