Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-09

narrow construction. has been steadily
crippled SO that when the war came II
was manifestly. unfit for the great task
required Of II.
time to comprehend this, but now sud
denly, as far as they are concerned, the
facts have burst upon them. We are
in q great war. One of the most i'm
railroad system, and this, because of
the ill-advised rate policy which has
hampered it for years. is not now mt TO
carry 1t on. From an entity existing
only to be pounded into submission for
the benefit OF the shippers. it has be-
come. in the eyes Of the commissioners.
q great national engine for public use
and it is not ready. The problem is
an overwhelming one for the Inter .
have passed the responsibility to Con-
gress
For the first time in its history the
commission has recognized the real
condition of the railroads, and also for
the first time has taken a step which is
broadly constructive and will be widely
helpful II acted upon promptly.
The commissions proposal, briefly, is
that the railroads be operated as a
unit either by the carriers themselves,
with suspension of the antitrust laws
and with sufficient increase in rates,
presumably under the war board Great
ed early this year. and which has been
doing effective work. although re-
stricted by state and federal law, or by
the President during the period of the
war, as a war measure, under the war
powers vested in him by the Constitu-
ton and conferred by Congress.
Under either of the two plans, the
government would come to the assist
ance of the roads. funds would be pro-
vided for immediate betterment, and
bond and stock holders would be taken
care of.
The surprising thing is that the
commission, for the first time, admits
what has SO long been contended by
Intelligent authority, that the rail-
roads should have just and reasonable
rates sufficient to yield fair returns
upon the value (not the cost of the
property. after all necessary expendi-
lures have been made and deprecia-
ton provided for.
In the second or alternate plan, these
provisions would be covered in a suit
able guarantee to each carrier of an
adequate annual return for the use of
the property by the government, its
upkeep, maintenance and improve
ment.
Either plan lifts the roads out Of their
dilemma. and the bond and stockhold-
ers out of their fear.
The hand of Harlan is manifest in
this constructive move of a heretofore
reluctant commission. In his minority
report last June, dissenting from the
refusal of the board to advance rates,
he cited his belief that the full increase
was necessary and expressed potent
arguments for the immediate relief
of the roads.
The movement is nightly encourag-
ing. because it indicates that the COM
mission has been joIted out of it's per-
sistently obstructive practices. and for
the first time in its history has become
constructive.
Control by the President, with the
roads operated a unit under the
present railroads war board would
undoubtedly work well, to be accom-
panied. OF course. by guarantee of re-
turns to bond and stock holders. Some
thing of the kind was successfully car
ried out in England and is still work
ing well. This plan guarantees the
earnings of the English railroads either
on the basis of the year previous
to the war. or the average of the three
pre-war years; that is. the net earn
fngs of those periods are guaranteed
after all expenses and taxes, whatever
they may be under the added require
ments of war years. are cared for.