Evening journal., 1919-07-09

AREN DANGER TO SUCCESSFUL PRIVATE OPERATION
SGT, HERE is real danger that private management Of
The railways will not be successful after the roads
are returned to their owner" says The Railway Age in
editorial in its current This danger is alleged to
exist because many leading members of Congress do not
appreciate the necessity for making by law the specific
requirement that rates must be made adequate for
providing for such administration Of the regulatory laws
as will give effect to this requirement"
The Railway Age contends shat the railroad troubles
OF the country especially the decline Of railroad ex-
panson which has been The immediate cause Of many
Of troubles have been due chiefly to the fact
that the regulating authorities have steadily refused TO
permit the railways whole to adequate
support for this view has come from unexpected but
highly expert source" This source is w j. Meyers
formerly chief satstician OF the Interstate Commerce
Commission, letter from whom the Railway Age pub
fishes i'm It's current issue
"Nr Meyers in charge OF the Division of Statistics
OF the Interstate Commerce Commission during the years
1910 TO 1913 Inclusive The Railway Age. 1T was
principally during these years according to conten-
ton that the decisions reducing preventing advances
in rates caused the decline operating incomes and
the bankruptcies, which in turn caused the decline OF
railroad development. No other man living knows
well Mr.. Meyers what the statistics Of the railways,
as compiled for the commission, showed during that
period and the opening sentence Mr.. Meyers letter 10
the Railway Age According TO my view Of the matter
tho fundamental cause Of the difficulties in which
quate revenues Elsewhere Mr.. Meyers says in his let
ter: The Act to Regulate Commerce declares that all
rates charged by railways shall be just and reasonable
but It contains little TO guide administrative commits
sion in determining what constitutes just and
able rate and it has thus happened that the action Of the
commission in disposng Of rate cases brought before it
has frequently resulted in rates too low to produce the
amounts Of revenue necessary efficient operation
development OF the railways.
do not Congress and the public want rates regu
lated TO enable railways to provide adequate facilities
and good servce?" asks the Railway Age IF they
do want rates regulated why not definitely say 50 in
the law Il could not do any harm 10 say Il may do
much harm not TO say
"The conclusion is unavoidable that the railroad
problem cannot be solved by giving the commission as
present constituted practically unlimited discretionary
authority the regulation Of rates and operation as is
virtually proposed by the Esch-Pomerene bill. II the
problem is 10 be solved either Congress must give the
commission specific mandate to regulate rates as to
enable the railway companies raise sufficient capital
adequately to develop their facilities, it must delegate
the determination OF what return public expedlency de-
mands the railways shall allowed to to other
governmental Official board. II the commission should
regulate rates the future it regulated them in the
past the railroad industry would not and could not
prosper and the transportation facilities provided would
not sufficient to handle the commerce OF the country
The commission perslstenty refused while acting under
existing laws to let the railways adequate net
turns Commissioner McChord has attempted in the teeth
OF conclusive evidence 70 the contrary 10 show that the
commission did let the railways adequate returns
Commissioner WoOley has argued in a recent public adj
rates should not be advanced enough to
prevent the railways from mourning deficits which must
be paid There is present reason for
tonng that Commissioner McChord at least expressed the
view OF most Of his colleagues. II the commission does
not today recognize the fact that the policy Of regulating
rates which was followed before the adoption OF gov
ernmont control mistaken and harmful, there is no
ground for hoping that without and definite
Instructions from Congress would regulate them fairly
md in the public interest in the future The shipping and
travelling public strongly in favor of the return OF
railways private operation as are railways owners
md officers but some influential shippers opposed to
pecncaly providing that rates must be made adequate
nd are in favor Of only leaving the Interstate Com
nerce Commission all The authority II has but Of greatly
Increasing its authority But recent uerances OF mem
crs OF the commission, and especially Of Commissioners
icChord and woolley tend powerfully TO justify the
ceiling Of mstrust regarding the commission which the
ailway executives and many business and financial in
erests have manifested"