New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-15
On Trial


for a supplementary rate advance Will test
the temper and quality of the reorganizeu
Interstate Commerce Commission. fresi-
dent Wilson recently appointed three new
.ornroissioners-o to fll vacancy
ceused bv death and the two others TO Ill
ORIGINAL vacancies created by the law
passed at the last session Of Congress- IN
creasing the membership Of the commits
sion from seven TO nine.
Mr.. Wilson has frequently eXpresseu
sympathy with the broader theory OF ran
road reoulation-a theory under which the
Government would undertake to develop
the railroads as a public agency, sustain
IND, their credit. anticipating their future
reeds and bringing them to the highes'
noint If efficiency, not for the benefit prl-
marily of their present owners but IN the
interest of the community at large Inc
commission. as heretofore organized mas
stuck 70 the opposite theOry-the popular
.beorv Of twenty years back-under whlch
tho government has acted merely as an &C
oorntant restricting the return on rail-
road operations and seeking to protect the
nubbc by holding down freight revenue TO
scant living figures.
The President said few weeks ago.
,bo,- 20 sent the names Of the three new
as toner's TO the Senate, that ne mao
- Extraordinary care in making his Sc
ors. The results Of that care Will
In the decision on the appeal Of the
.o-n roads for additional relief. In the
,.,~o years Congress has broadened the
Of the commission. 1t has instructed
..,rr1iesion 10 settle the veMng ques-
- railroad postal rates. 1t passed the
s5,l .aw. raising the wages OF railroad
loves and threw on the commissioners
burden of restoring the disturbed
rum by granting the carriers com
..-.tion through freight rate increases.
T-. whole trend Of recent events has been
.u from the narrow, one-sided regula-
t,.-. " the past and toward a constructive
.v. under which the commission should
-9 longer nc. as a passionless arblter OF
.r..fes of interests between the carriers
Inc public. but should'try to end that
conflict ~ developing and expanding the
road system and making 1t far more
and useful national agency than
Ias ever been.
The first great need of the railroad stu
n to-day is a friendlier understanding
o4 the part Of the government Of its own
.r .he public's Joint interest with the
carriers. The war has opened our eyes
IN ,be vast military Importance of our
Hvav system. We are suffering already
from the underdevelopment Of the last
decade. due in no inconsiderable part to
tho commissions policy Of repression. The
roads have been kept on half rations
rho, have found it difficult to raise new
.,rral for necessary improvements. The
rictions out on their earning power
Lave scared off investors. Their credit IS
.0s1cquate to their demands.
since 1914 the Interstate Commerce
Commission has twice admitted the insult
dciency of railroad revenues. 1t allowed a
sren increase in freight rates in Deem
her, 1914 after having refused 1t five
months earlier. Last June after the rail
roads had been saddled by Congress with
he heavy wage increases of the Adam
son law. the commission granted second
moderate increase-and granted it little
les haltingly 1t promised the carriers,
moreover. TO reconsider their requests
net only in part-if this summers operat-
ing should prove unsatisfactory
The war. Of course, has greatly stimu-
lated the business of transportation. For
the first six months of 1917 the operating
revenues of all the railroads in the country
increased s201 100000. But operating ex
ocnses increased 1907 100000 and net in
ro~e decreased S19,OOO,O00. After the
new freight rates went into effect the stu
alton was expected to improve. But it has
not improved. The August figures show
hat although the gross operating receipts
~ all the railroads Of the country in
creased nearly $37,OOO,OOO over those Of
August a year ago, net income decreased
s. 900 0OO-which is more than the month
lv average of loss for the first six months
cf this year, when the freight increases
ere not in effect.
The Eastern roads have suffered much
more than the Southern and Western
roads. Practically the whole loss Of the
first six months of 1917 fell on them Their
predicament has affected all railroad
Values. which have been sinking lower ana
lower. Their appeal for further relief Is
therefore one which commission with any
clear idea of justice or sound national pol
lex cannot deny.
We have to-day the spectacle of the
railroads of the country operated with