Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-21
BY PROF. WILLIAM z. RIPLEY.

commission and an authority on the
railroads and their problems.
BY PROF. WILLIAM Z. RIPLEY.
BOSTON, October 81 (N.AN,A0.-
Every merchant In the land, an army OF
employees, horde Of owners Of railroad
stocks and bonds, every life insurance
policy holder, every depositor in saw
| ings institution or a bank-quite a siz-
able host, in fact-has a stake in the
fate Of the railroads Of the United
States.
Collectively, they have applied for
blanket increase in freight rates, agri-
cultural products excepted, to enable
them to maintain their credit In race
Of the general industrial depression, and
F.! of the special menace OF the DuS, tne
truck, the water carriers and the pipe
lines. What will be the effect upon
them of the decision of the Interstate
Commerce Commission, just rendered, III
this time of their distress?
| The blanket application Is denied.
But in place of it long list OF increases
upon specific commodit. S Is recon-
mended under certain conditions. DIS
regarding details have the railroads won
their case? Is the situation saved 1or
them by this decree? Have the rail-
roads wen or have they lost?
Predicts Betterment.
This decision, seemingly negative, in
my Judgment betokens a distinct better
ment Of outlook for the future. The sit
uation is still precarious, of course; but
it is now evident that the Interstate
Commerce Commission Is keenly alive
to the situation.
| Permission for increases upon a long
list of commodities at the very low point
| of an unparalleled industrial depression
is. in fact. a confession of the indis-
pensable character of the railroad serv-
| ice. 1t must be maintained at any cost.
| Otherwise no increases at all In race
| of the circumstances and protests OF
shippers would have been allowed.
| Does not this, then, point to re-
| versal Of policy by the commission ana
to an acknowledgment that in future IL
must be more liberal in times OF pros
perity so that reserves TO bridge over
these to-be-expected periods OF depreS-
sion may be accumulated? Thus. 10
permit higher rates in good times. when
| the rate counts but for little, can alone
avoid a necessity like the present OF
increasing the burden at time when
the shipping public is least able TO
bear 1t.
Use Of Funds Problem.
One of the wisest transcontinental
railroad presidents put his dilemma TINS
! wav: II am less concerned about GET
ting a is per cent increase OF rates IMAM
I am about actually applying any IN
crease which the commission may grant
to my shipping public
Thus is the matter now squarely put
4 1y decision.
AS for them to so adjust the increases
that they. shall not still further drive
awav business to the truck. the bus, the
barge or the pipe line. Never oeIore
have these railroads been mace more
conscious of the Intervening OF tner
welfare with that OF the communities
they serve. .,,o
and the railroads has been marvelousiy
magnified in this episode. The ran
roads are made to realize the narrow
limits upon the charges which they may
assess in face of these new OUTSIDE COM
petitions. The public. on the otner
hand, and the commission also are
brought face TO face win tne niuio-
pensability of the railroad service 70 the
country.
Truck Competition Minor.
II would take a thousand trucks. for
| example. each driven by man or Two,
to do the work of single tralnloao u
coal Serious as the inroaos upon
revenues from these competltorS ha'e
BEEN in reality they amount 70 pu1
| very small proportion of the staple puSl-
| ness of the country. When prosperity
returns the carriers will speedily revive.
And then these surcharges now I'M
posed may be reasonably aoateo.
Rut never again may the railroads IN
| time of prosperity do business upon SO
narrow a margin or prof1t as tney nave
done in the past. 1t took the oeatn %
las working girls in the lIianet ne
shirtwaist fire IN New YORK III Isro "
| shock public opinion into proper re-
vision of its factory legislation. Inc
price was tragically high; but Tor the
future matters were uplifted to dis
tinctly higher plane.
So in this field Of transportation. The
seemingly impending bankruptcy OF
more railroads even than were IN re-
ceivership in the depression OF 1899
II it has served to force upon the Gov
eminent at Washington the need OF
more liberal regulative policy 1or tne
| turns will render the event well worth
| while. Nor is any change of the ex-
sting law implied Not a comma or
svllable of the act of 1920 need be
Changed. Just change OF adminlstra.
tive policy is all that Is needed. And
this decision presages such an event.
Operation Costs Must Drop.
Tn this crisis however, the problem
NAV not be overlooked in the public in
terest. of a definite reduction in the
costs of operating this indispensable
public service. Every industrial depres-
sion on record, so universally the fruit
of speculative imitation, has resolved
itself only through painful period OF
reimbursement downward. This read
iustrnent for the railroads must for the
long pull be applied to all costs OF OPP
erationS.
If prices and wages in all industries
throughout the country are coming
down to q more normal plane, it is in
conceivable that one industry shall be
protected by governmental edict upon
plateau of wartime costs of operation
and of charges based thereon.
There is not by and large finer or
a more intelligent body of men in the
land than the members of the train
mems brotherhoods and of the other
railroad organizations of labor. An ad-
ministrative fundamentally has been
set UP for periodically needed revisions
of wages in this field. 1t will require
time to perform this task.