New-York tribune., 1920-10-22

lays encountered by the railroads in
connection with applications for in
creased rates are matters of record
The feeling prevailed in railroad and
banking circles that the commission
did not approach the railroad situation
with broad vision, and it will always
be felt that except for this attitude
there would have been no necessity for
the government to have commandeered
the railroads, so far as the question of
service was concerned.
During the period of the war COM
paratively little was said about the
railroad legislation. The government
was concerned primarily with the win
nlng OF the war and did not need to
make laws affecting the railroads. 80
long as they were in its control. Less
than two years and two months of
government operation were needed to
demonstrate the absolute unwisdom of
attempting government operation as a
regular thing in times of peace. Even
the former champions of this policy.
and OF government ownership as well.
were willing to consider the return of
the railroads to their owners.
Construtive Legislation
With this last-named stem clearly
IN prospect, and in view of all the adj
ditional burdens which the government
had placed upon the railroads during
the brief period of its control, it was
perfectly obvious that important con-
structive legislation must be enacted if
the owners of the great railroad prop
critics Of this country were to be placed
IN position to render the service due
to, and demanded by the public. and
also to make the return to their secur-
u hN1 II ,ol- Al
entitled
Accordingly, the framing of such leg
lslatlon was taken actively in hand by
the duly appointed committees of both
the Senate and the House. Prominent
representatives. of the railroads were
asked to cooperate by furnishing all
the material at their command and
also by offering suggestions based upon
ther long and successful experience as
railroad executives or attorneys.
1t is perfectly we'll known that in the
period prior to the war, the charge
was made that, in addition to the adop-
ton and pursuance of policy Of re-
striction by the Interstate Commerce
Commission, railway executives as a
group were not inclined to take the
public into consideration to the extent
that it was believed they should have
done, not to have cooperated fully with
with whom they have regularly had to
deal in the management of the rail
roads.
However much or little ground there
may have been for that charge in those
days, it may be stated without the
slightest fear of contradiction, that in
all the negotiations between the rail
roads and the government during the
period Of the war and after its close,
with respect to the return OF the prop
critics, and the legislation that was be-
ing worked out Herewith, a spirit of
true cooperation on the part of railway
executives was always in evidence. 1t
Is gratifying to note also that this
spirit was reciprocated by the repre-
scntatlves of the government.
Increasing Roads Revenue
The manifestation Of this spirit mu-
tually has been one of the most i'm
portant developments in connection
with the position of the railroads, and
one which promises to bear rich fruit
as the years go by. 1t resulted in the
enactment of the socalled transporta-
tlon act, which is characterized bv
every one who has looked into its pro
VISIONS as not only one of the broadest
but one Of the most constructive, and
therefore one Of the most important
pieces of legislation thateever has been
passed by Congress.
With this measure law it became
necessary, under its provisions to find
ways OF increasing the revenues of the
railroads when they were turned back
to their owners, and more specifically
after the expiration of the extended
COVE rnment guaranty on September l.
From the outset the Interstate Com
merce Commission clearly indicated
that its members were fully cognizant
Of the necessity of decidedly larger NET
income for the railroads. The latter
presented their applications for in
creases in freight rates that, after
careful calculations, were believed to
be no more than necessary to enable
them to earn the ~ per cent on their
property investment to which they
were entitled under the transporta-