Evening journal., 1917-11-20
IS PER Gent. Rate
Y Increase IS SOUGHT
Railroads Prepare Another
Appeal to Add $4,000,
900 TO Gross Income
AWAIT DECISION NOW
ON IS PER CENT. APPEAL

yin IL LAN ~ ~ AA~ '@N@~
WASHINGTON. Nov. 2O.-lf the In
terstate Commerce Commission grants
the IS per cent. rate advance urged by
The eastern railroad the carriers Will
Immediately request permission to file
new tariffs carrying additional Increases
of approximately 1873 per cent.
George stuart Patterson, Of Phi!adel-
phia. counsel of the eastern carriers,
announced the intention Of the rail-
roads to ask for further Increases, at
the closing Of the hearing before the
commission today.
He said the relief granted earlier in
the year amounted to s97OOOO0O, and
that the rates now under CONSIDERS
tion would add S5s,OO0000, or a total Of
fi55.OOO,OOO But this, he said, would
account for only a little more than half
the great rise i'm wages and materials,
which had added s27S,0OO.0O0 10 the
operating cost Mr. Patterson declared
that, as a hearing would be needed on
the further Increases application
would be made by the eastern carriers
for permission to nle the new tariffs.
The rate advance already granted
amounts to 50 per cent on freight reve-
nues, and the completion Of the i5 per
cent. case will add 40 per cent, total
OF 1874 per cent.
The great rise in the cost Of bitumi-
nous coal, OF which the carriers con-
bume q quarter Of an the mine output,
has added sS6.OO0.O0O TO eastern Operat-
ng expenses. The rise in Steel copper
bnd other materials has added sS9OOO,
Doc: while the advances In wages total
fi03OOO0OO THIS Is q total Of S270000
boo. and does not include about S20
D00OOO in Increased taxes.
The essential faces OF the situation,
bs recited by Mr. Patterson were
First. A continuous decline in net OPP
prating income accompanied by a stead
lly increasing basis Of cost Of operation,
and this I'm the face OF increasing trafi.c,
property investment and in average car
bad and train load.
Second. A decrease I'm both the sup
bly, and character Of labor available for
railroad operating. which is being daily
Intensified and which will still more in
grease in the future the cost OF oper-
ltion.
Third. The existence Of deferred
maintenance at time when the high
est standard known should be main
tanned, the further postponement OF
which will increase It's cost, and de-
grease the operating efficiency Of the
railroads.
Fourth Inability to get new capital
BY the issuance Of stock, and the neces-
larry weakening effect upon the credit
bf the carriers.
T...f.tNfNas g.. 4n1- fr,4f,
ments imperatlvely demanded by tht
necessities Of today and the trafilc Of
NE future.
: CommenlIhg on the rise in wages
4 which has already added more thai
si0O.OOO000 10 the payrolls. Mr.. Patter
son said these advances were still 60
Ing on. the Pennsylvania Railroad alone
having made increase in wages In tht
last month amounting 10 more than ST.
100000 a year.
AS our armies increase into the mill
lions" said Mr. Patterson, "and as the
carriers are called upon to meet the
competition Of labor with industries
whose prices are regulated or unregtl-
lated. or called upon TO meet the COM
petition Of labor with the Government
Itself. the available supply Of labor viii
decrease, and its price viii rise and
hnless the Government is prepared not
only TO conscript labor for the rail-
roads. but also to limit its wage. we
must assume that the present cost Of
labor, measured by wage and efficiency.
will not decrease"
Mr.. Patterson said that so far as 10
Is humanity possible to look into the
future, there 10 no immediate prospect
Df any reduction in the cost of conduct
)ng transportation, and the cost Of
maintaining the railroad properties lie
bald that the increased cost Of coal for
locomotives is S86.O0OOO0. and that the
price recently fixed by the Government
Is higher than that now paid by many
" the carriers.
He said the recent Increase in wages
70 the miners would automatically in
Grease the price to the carriers under
contracts entered into prior TO the fix
ing Of Government prices. The esti-
hate Of the carriers as to the average
increase in the cost Of materials other
than coal is 42 per cent. Mr.. Patter-
son cited the fact that the Government
price for pig iron, the products OF
Which are largely consumed by the rail-
roads, Is 100 per cent. above the aver
age price paid In the five years before
lle war; that the Government price
OF copper is 6s per cent higher. and
ele Government price for coal ii5 per
cent. above the pre-var level