Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-07-21

! count in ITS award and let us of as
easily as possible.
The new railroad law makes specific
provisions for the protection of the
roads against the ineQuitieS from which
they have suffered in the past. 1t pro.
vidcs that all rates shall be reasonable
in the interest OF the public. but it also
provides that such rates shall be fixed
as will insure return of q, per cent
on the value Of the property. The law
is mandatory. Under tho rates which
prevailed whPn the roads were turned
over to their owners by the government
this return could not be earned.
The Interstate Commerce Commission
is now studying the testimony offered
in hearings on the request of the roads
! for such an increase in rates as would
yield $! ,000, 900. 900 year. This in
crease was said to be necessary under
the old wagc schedule. II the roads
must lind $500 ,000.0 600 more for in
creased wages their rates must be in
creased accordingly. aud the Interstate
/ Commerce Commission has no discre-
tion in the matter. for the law says it
/ SuuI ''luullNN SNFn rHtNS as VIII
earn fair return on the investment.
( The enforcement Of this statute ought
TO rclipv" the railroads from the hard
ships from which they have been suf
fcrinS for generation. They have
been starved in pursuit Of a dcmagOgic
hoory that they had no rights which the
public was bound 20 respect. That they
brought their punishment on themselves
through the INSCRIPTIONS exploitation
of franchises and through their use by
stock jobbcrs in the past has not made
il any easier for them to meet their
problems.
! Rates have been fixed without due
regard to the cost of the service, and as
result the roads have not been able to
buy equipment to replace that which
was worn out. to soy nothing of pro
viding for expansion Of business.
/ When tho government took them over
they were in poor condition and the
companies had been unable to raise
capital to improve them. for there was
no certainty that the Interstate Com
ncrcc Commission would permit them
to increase their rates sufficiently TO
meet the new fixed charges.
The rates in the past had been 50
low that they were unable to replace
euupment out of income. as it ought
be replaced in any properly conducted
business.
Tie troubles of the railroads in re
cent wears have been largely due to
unintclligent government regulation.
The plan of the new law is intclli-
gent We shall see whether it is in o
tclIgcntly carried out, If tho great
arteries of tho country which carry
tho lifrblood Of commerce arc to be al
lowed to function freely il will bc nee
cssary for the Interstate Commerce
Commission to abandon its old policy OF
niggardlincss and to face the situation
as il is in July Of this year of grace.
The roads today have not cars enough
TO handle the business offered. The
warehouses of manufacturers are full
of goods which cannot be shipped be-.
; cause the roads cannot handle them
1t would be cheaper for the producer tC
pay twice the present freight rates anr
have his goods moved than to keep then
in his warehouses for weeks. The pur
chaser would rather pay the extrf
freight and get his purchases when h,
wants them than be compelled to wal
weeks and months for what he hal
ordered.
What the nation needs today is tn,
enforcement of a railroad2olicy whicl
u will make Impossible to 1 sp the trafii'