The sun., 1919-10-08
HINES GIVES OUT
FINAL DECISION
IN RAIL TARIFFS
Suggests New Schedules Be
Prepared and Offers Aid
Of Experts.
PUBLIC MUST BE HEARD
Letter to Association of Ex-
ecutives Advises Method of
Seeking Rate Boost.
PUBLIC MUST BE HEARD
spsc.a, psspatch to tn. sur.

Special Despatch to THE Sun.
WASHINGTON, Oct. IA definite and
what is considered final decision that
there will be no further increase in
railroad rates during the period of
Government control was made to-day
by Walker d. Hines, Director General
of Railroads, who made public letter
to T. De Witt Cuyler, chairman of the
Association of Railway Executives, in
which he says any increase by the
Government is beyond the question.
Suggestion is made by the Director
General, however, that the railroads
prepare tariffs for increases regarded
as necessary and file them with the
Interstate Commerce Commission as
soon as Government control ends De-
cember 81. He offers all possible aid
in furnishing information for the pur-
pose. His letter to Chairman Cuyler
follows:
from time to time have dis
cussed with you and other representa-
tives OF the railroad executives the aues-
ton Of what II any increases should be
made In railroad rates and the manner
In which such increases should be made.
Question to BE Considered.
MY view has been and is that this
present matter must be handled in ac-
cordance with the following considera-
tions:
"First--The question of an increase
In rates could not properly be consid
cred on the exclusive basis OF the un-
favorable showing which the Railroad
Administration was making in the early
part Of this year, because that showing
was very largely due to an abnormally
small freight business. so that the re-
suits of that period could not fairly be
taken as a test for making increases in
rates. Necessarily. therefore, It seemed
to me that the formulation of any pro-
posal for a general increase in rates
would have to await better oppor-
tunity for making an estimate as to
what the earning capacity would be un-
der normal conditions. / have been in
creasingly confirmed in this opinion by
the various developments which have
taken place
"Second--It has seemed to me that the
public would not be satisfied under ex-
listing conditions to have any general in
crease in rates put into effect without the
concurrence Of the Interstate Commerce
Commission. The public sentiment to
this effect has been manifested in many
ways throughout the year, and has been
emphasized by the recent passage by the
two houses of Congress of bills proyid-
ing that there shall be an opportunity to
review any rates proposed by the Rail
road Administration before those rates
shall go into effect II follows. therefore.
that time and opportunity must be pro-
vided for public consideration by the
regular rate making authority of any
rate proposals now made
Basis of Rate Review.
Since the foregoing controlling fac
tors must be respected II is evident that
II would be impossible for the Govern
ment TO establish any general readjust-
ment OF rates prior to January |, 1920.
1t 10 also evident that any new basis
to be established for the future should
naturally be considered not from the
standpoint Of unified operation Of all
the railroads but to a greater extent
from the standpoint of the necessities of
the separate railroads.
"A rate adjustment which might fully
protect the Government when operating
all tho railroads as a unit might wholly
fail to protect equally or fairly the diff
ferent railroads when separately op-
Grated.
II therefore see no escape from the
conclusion that II the corporations de-
sire to make progress at this time with
this matter. they enter themselves upon
a study Of the problem to determine
what tariffs they think ought TO be pro-
posed with view 70 filing tariffs ac-
cordingly with the appropriate public
authority.
~ suggest. therefore. that you advise
the railroad corporations that II they
desire to take this course l shall be glad
10 place at their disposal all the infor-
nation in the possession of the Rail-
road Administration bearing on the sub
ject. Since most OF the traffic experts
who would ordinarily be relied upon by
the railroad companies In e matter of
this sort are now employed by the Rail-
road Administration. I shall be glad to
provide that the traffic experts 30 en-
ployed shall aid tho railroad corpora
tons In studying this problem and bring