w materials, and
especially coal and lumber and kindred articles, the transportation of
which requires neither an expensive rolling stock nor warehouse
accommodations nor speedy movement, and in which the risk of loss or
damage is insignificant, should be carried at the lowest rate possible.
Such a policy will tend to foster other interests, which will develop
business for the road and will build up remote sections of the country,
and will often enable railroads to carry large quantities of these
commodities at times when they would otherwise be nearly idle. There
should be a uniform classification throughout the country, based upon
considerations of justice and equity instead of railroad tradition. Such
articles should be classed together as resemble each other as concerns
bulk, weight and risk, or what is virtually the same, cost of carrying
and handling. It may be safely assumed that a rate which has been made
and used by railroad companies is remunerative. If it is claimed by
railroad men that it is not, the burden of proof should rest upon them.
A rate may also be considered remunerative to a road if other lines
similarly situated have voluntarily adopted it. A schedule finally must
be considered reasonable if it enables the company for which it is
prescribed to earn under efficient and economical management sufficient
to maintain its road in proper condition and a fair rate of interest
upon a fair valuation of its road. Property is never worth more than
what it can be duplicated for, and railroad property is no exception to
the rule. If there has been a depreciation in the property of a company,
it should not demand dividends upon values which no longer exist. Nor
can the same returns be conceded to railroad property as to private
capital. Its investment is permanent and well secured, if it is honestly
and intelligently made; and its dividends are net returns after the
payment of all expenses, including taxes, cost of management and
maintenance. The three per cent. bonds of the United States Government
find a ready sale at prices above par. Were there less speculation and
more honesty and stability in railroad management, railroad securities
yielding a revenue of from 2-1/2 to 4 per cent. on the actual investment
would be eagerly sought after by conservative capitalists.

Rate-making requires honesty of purpose, intelligence and discretion,
qualities as likely to be found among the servants of the people as
among