Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-10-25
SHIPPERS INTERESTS PUT
ABOVE THOSE OF STocKHoLDER
Latest Ruling Of Interstate Commerce
Commission on Freight Rates Another
Step Toward Government own.
ershIp Of Railroads

OI NdIITOdus
T1IIlS country is moving so rapidly in the
direction OF Government ownership of
the railroads that. whether we like II or
not IL may be upon us before we are awnrH
Of it,
Nothing can prevent 1t save n demon
stration nj greater ability to meet problems
as they arise than has been shown by the
men now managing the roads
Tho Interstate Commerce Commission has
just laid down rule for tC-hying based
on the principles that rates should be made
primarily in the interest Of the shippers and
without regard 10 the financial interest Of the
railroads.
In explaining the reduction Of 1G per cent
in the freight charges on hay and grain
Commissioner Potter said.
Practically every one admits thot
rates are 100 high Rates too high are
unjust and unreasonable and under the
law must be reduced. Those who JUS
tIfy the present rates regard them az
necessary eyil--somethng that must be
tolerated because high costs cS opeT-
alton prevent their reduction. That g
no iIrtihcatCn. II operating costs are
holding rates at level too high, the
thing 10 do Is to reduce the costs.
II seems to BE- assumed that the railroads
exist to serve the public and that the cost
of operation must be so adjusted that that
service can be provided at u reasonable price.
If this is TO be the policy of the Govern
ment one Of two things will happen, Either
the railroad managers must reduce wages and
cut down their working forces and change
thc rules under which the men work so that
the necessary economies may be effected TO
keep the roads ont Of bankruptcy, or the
Government will have to take over the roads,
carry freight and passengers at what it re-
CARDS ms a fair rate and pay the deficit out
Of funds raised by taxation.
There IS no escaping one or the other of
these alternatives, 1t is possible for the
managers to make great economies in oper-
nting cost Henry Ford has recently shown
what can be done with his comparatively
small railroad by raising wages and by scrap
ping the union rules which are framed TO
bring about the employment of the greatest
possible number of men. AS q result It Is
costing his road less to move a ton Of freight
a mile than it costs the competing lines.
But if the Government should take over
the roads it would not make any sich erono-
mics. The country knows what happened
when the Government operated the roads
during the war. Wages were raised and
rules were made which required the en-
used TO be done by one man,
The people are confronted by the posi-
bility OF having TO pay out Of tn" taN funds
the difference between the cost Of Iaovng the
freight ot tn" leading producers and the
amount which these shippers pay to the
railroads.
This is what has happened In England,
where the telegraph rates are tiA"d without
regard to the cost of the service and the an
nual deficit il paid Jy a Government nppro-
prlNtion.
Such a disaster can h" prevented j: Vie
railroad managers, backed by public sonti-
mcnt are permitted or forced TO devote them
selves to the elimination of waste. Erono-
mics in operation together with increased
revenUrs through increased business A.
tractcd by low freight rates would probably
"nebl" them to nay dividends. Yet the
managers insist that such result i con-
iectGral OF course It is, but the railroads
ought to be willing 70 take some risks
The principle laid down by the Interstate
Commerce Commission IS that tho railroads
are public highways maintained for tho b"nc-
ft of all the people. The courts have de-
cided time after time that the railroad man
ayers are trustees for the people In TIE opcr-
alton of trains on these highways. To say
thnt the charges shall be fixed in the interest
Of tie shippers and not in the interest of
divid1uds on capital or to pay the cost Of
eItravagant operation is merely TO take the
next logical step.
II will stop there il the managers can
make good Otherwise the processes Of
logic will continue TO operate, however un-
fortunate the conclusion may Ns for the
taxpayers.