Evening journal., 1919-10-08
NO RAIL-RATE Use
UNDER U. S. RULE.
present Policy TO Continue
During Federal Control,
Hines Writes
PUBLIC WANTS
|. c. c. TO JUDGE

WASHINGTON. oct. $40 increase
or general readlustment Of railroad
rates will be attempted by the govern
msnt during the remainder OF The period
Of Federal control. Walker d. Hines.
director-general Of the roads announced
last night II rates are changed before
the government relinquishes The lines
on January 4. 1920. or increases are to
Do made effective after that. The railroad
corporations themselves will have 60
initiate the tariffs and submit them TO
ihe Interstate Commerce Commission.
The director generals statement was
made IN a letter-te r. ne VIII Guylcr.
of Philadelphia chairman OF The Assoc
citation OF Railroad Executives. and pro-
ceeds upon the assumption that the
roads will be handed back 10 their
owners on the first Of thc year The
ielay In Congress on legislation for fu-
ture railroad control has had no enect
hus far on the announced d'termina-
lion OF the President and Mr. Hines to
release the lines on January The
governments view On Che rate question. /
Mr.. Hines letter SAYS must be con-
irolled by the two following consldera-
li0ns:
First The question OF an increase in
rates could not properly be considered
on the exclusive basis of ihe unfaVOr- I
able showing which the railroad ad- /
minisiration was making In The early |
part of this year, because that showing /
was very largely due 90 an 3bnormally I
small freight business. So That ihe re- 1
suits Of that period could not fairly be (
laken as a test for making increases IN /
rates Necessarily. therefore. it seemed /
10 me that the formulation OF any pro-
posal Tor a general increase i'm rates
would have TO await better oppor-
tunity for maknc an estimate as TO
what the earning capacity would be
under normal conditions J have been
increasingly confirmed in This opinion
10y the various developments which L
have taken place.
second 70 haS seemed 10 me that
the public would not be satisfied under
existing conditions 10 have any general
Increase In rates put into effect without I
The concurrence of the Interstate Com
merce Commission. The public srnli- ,
Inent 90 this effect has been manifested ,
in many ways throughout the year and I
has been emphasized by the recent pas
sage by the two Houses Of Congress Of ,
bills providing that there shall be an =
opportunity to review any rates pro- d
posed by the railroad administration q
before those rates shall go into effect 4
70 follows. therefore that time and op- I
portunity must be provided for public Z
consideration by the regular ratc-mak- n
ing authority Of any proposal now
made.
since the foregoing controlling fac .
tors must be respected, it is evident
that Il would he impossible for the
government 10 establish any general ,
readiustment Of rates prior 90 January /
l. 1920. 10 is also evident that any new
basis 70 be established for the future ]
should naturally be considered. not from
the standpoint OF unified operation Of Z
all the railroads, but TO a greater OK d
tent from the standpoint OF the necessi- 9
lies Of the separate railroads. A rate h
Jf adjustment which might fully pro- n
ect the government when operating all 81
he railroads as a unit might wholly :
'ail TO protect equally or fairly the
liferent railroads when separately op-
rated
Il therefore see no escape from the
'QncIhsion that. II the corporations de-
ire 20 make progress at this time with
his matter, they enter themselves upon