The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-01-30

ton to the fact that there are so
many controlling factors as yet un-
solved, that one should be slow to
make predictions in times like the
present.
The outstanding feature OF the
railroad situation is the new era of
public confidence in the integrity of
railroad management which Is fast
creating a sentiment that will do
more to solve the problems of the
carriers than any other influence.
I'm the final analysis in this coun-
try 1t is the mass OF public opinion
that settles questions of 20 sweeping
a bearing upon the prosperity OF the
nation as those involved . in deter
mining what is the fair things to the
railroads
II am optimistic in my faith
that the public is rapidly un-
Outstanding the economic conditions
confronting the railroads and that IT
can be relied upon to enforce n,
common sense solution of all pro-
blems connected Herewith. l base
this opinion upon a personal know
ledge of the views OF people in the
various walks OF life. 1t remains for
the proper public authorities on the
one hand and the representatives of
railroad management and labor or
CARNATIONS on the other to crystalize
program, which the public can re-
ceive with confidence as being uni
formly Just, not only to those who
labor IN the service OF the carriers
but to those who purchase that SER
vice. the public at large, and to the
investors who furnish the capital to
make that service possible
Gives All Interested Concern.
Holding such views the unfavor-
able points In the railroad outlook
to my mind are by no means insur-
mountable. They do, however. give
any one, no matter what his interest
may be. whether from the stand
point OF the employe. the employer,
the investor or the user of railroad
transportation. much concern. There
is the unsettled condition OF regula-
ton and the determination of where
ii should begin and where It should
end
There Is a question whether there
is not need for clothing the Inter
state Commerce Commission with
authority TO make a rate structure
that will. in interstate commerce,
universally apply: yet. on the other
hand there Is the question as to
whether the Interstate Commerce
Commission Federal body-should
have the power or whether the State
should have the power to determine
whether a railroad shall or shall not
build a certain piece OF track with
in its borders and whether this or
that class OF securities should be is
sued for It's payment and the condi-
tons under which such securities
may be issued. +
There 10 a grave question whether
State should not be permitted. IL
II desires So to do, to say what ex-
tensions OF railroad tracks and SER
vice for the development of terri
tory within its borders may be neces-
sary which almost necessarily in-
wolves the right to supervise issues
OF securities by railroads required TO
bring about such result.
ION the other hand. II II is the
purpose OF the legislative bodies at
Washington to increase the member
ship of the Interstate Commerce
Commission in order that the com
mission may deal with such Ques-
tons. the plan OF dividing such COM
missioners into regional bodies some
what along the lines of the region
al banks of the Federal Reserve sy.-
under which regional bodies sub
| serv!ent to the Interstate Commerce
Commission should be distributed
throughout the country. so that such
regional bodies would be in close
touch with the communities OF the
territory traversed or to be traversed
by a railroad. or any proposed extern
ton thereof, and to represent those
communities
ANY plan to throw upon the In
terstate Commerce Commission, as
at present constituted. the require
ment to control the building OF ad-
ditfonal mileage and the issue of
securities necessary far such con-
struction. with all the detail informa-
ton required for the determination
of such questions will unQuestfon-
ably result In retarding the full de-
velopment of territory which other
wise may be developed. and even
should the commission be enlarged
as proposed. there is still the ques-
ton above discussed whether the
State is not the most effective instru-
ment for the determination OF ques-
tions affecting the development OF its
own territory.
MY own opinion Is that whatever
body Ia to regulate the construction
of railroad mileage and the issue Of
securities to pay for such construc-
ton, 1t should be OF q supervisory
character with the veto power but
not the power to control the initia-
tive: this was in substance the report
| Of the very able commission headed
by President Hadley OF Yale Univer-
sity.
the public and to economically raise
the money so to- do. and their ability
to increase their gross and net re-
| eoIAIes IsdoId su1 ~ op OF pe1pus
venue which they certainly should be
is to be furnished.
1.-THE method OF settlement Of these
important factors necessarily will at
feet the position Of the carriers, both
as to their ability to properly serve
Earnings VIII Increase.
1--WE may look forward with firm
confidence for a continued increase
in gross earnings during the year
1917. This can only fall by break
down In the wisdom OF the public
authorities in what they may do to-
wards the solution OF the problems
Of the railroads, some Of which are
discussed above. and the ratio of net
earnings to gross will he In proper
ton to whether fair or unfair treat
ment II received