Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-03-26
HIGHER FREIGHT RATES
FOR RAILROADS CERTAIN
I. c. {. Expected. However, to De-
mand Ample Time to Make
Investigation.
OUTLAY GREATLY INCREASED
Companies Ask for More Revenue to
Pay Higher Wages and to Buy
Equipment Required TO Handle
Business Now Offered.

Especial TO The Times spat ch.
WASHINGTON. March o5.--lt is ac-
cepted here as foregone conclusion
that the railroads will be allowed an
increase in rates 10 meet the enor-
mously increased outlay incident 10
the strike settlement and TO the higher
cost OF railroad operation generally.
But there is no feeling OF certainty
that the carriers will he permitted to
raise their revenues through hor-
zontal rate advance OF from TO is
per cent. Nor is II certain that de-
cision from the Interstate Commerce
Commission will be forthcoming within
the next few weeks. rs urged by the
railway executives.
More f,an a year was required by
the commission TO determine whether
or not the fat per cent Increase
asked for just prior 10 the beginning
Of the war was justifable. And when
the conclusion Of the commissioners
was reached. ii applied to specific
comm ODDITIES. and not to all freights
OF whatever classification.
The prospect is that the commission
will demand ample time to make it's
investigation into the financial needs
of the carriers on the one hand. and
into the Glasses OF freights which
might be compelled TO pay higher
charges with least hardship. on the
other. This cannot be done in day
or a week or a month.
LATER DATA BRINGS
CONDITIONS TO DATE
II is true that the inquiry necessary
in the present situation will not be
as far-reachinG as that three years
ago. The commissioners have full
knowledge already of the fiscal affairs
Of the railroads up to that time. Tina
knowledge will be supplemented with
data since the previous investigation
was made. thereby bringing conditions
down 10 date.
Certain facts favorable to the raj.
roads in their present move for more
income are obvious 10 the whole coun-
try. Their expenditures for brother,
hood employees alone have been i'm
creased by approximately s50.00o,00o.
This affects about 100000 railroad en-
ployees out OF more than 100000.
Wage advances have been made TO
other classes Of railroad men within
the past two or three years. some OF
them voluntary, others through arbI-
traitors.
1t will be contended. therefore, that
the cost OF railroad operation. from
the standpoint of labor alone, has been
increased since the > per cent rate con-
test more than 100000 GOO This has
come without any corresponding ad-
vance in rates. and most OF II has come
over the protest Of the railroads them
selves.
LIMITED IN TRAFFIC.
ONLY ny CAPACITY
But the volume OF tonnage handled
during the past Two years has been
enormously greater than that hauled
three or four years ago. In fact. the
carriers have been limited in tie move
ment of freight only by their capacity
They have been pressed for eighteen
months or more. as never before. 70:
ears. the demand growing to such an
extent that a committee OF rsilroad
executives with almost p:enary power
have been stationed in Washington -
supervise car distribution.
This has meant tremendous in
crease in both gross ard net earnings
And there is very pertinent relation
ship between the extent of these earn
ines and the appeal OF the carriers for
authority 10 exact further charges fo.'
their service
II will be shown by the carriers
however. that. notwithstanding the
growth OF earnings. they have not had
enough money to make necessary ex.
tensions. particularly in the direction
OF rolling stock This lack Of credit
Will be held responsible in large meas
ure for the shortage in cars and the
tons Of the country.
The railroads are expected to in
sist, therefore. upon more revenue not
alone TO pay the higher wages of their
. men. but 10 buy that equipment which
I is required 10 handle the business that
is offered them Aud tho commission
Viii be reminded Of conditions. in tina:
direction. which they themselves. with
/ doubtful success. has tried to remedy
/ during the past year and a half
NAY BE COMPLICATED
B BY PENDING LEGISLATION
The fight OF the railroads for money
may be further complicated by the leg
islation pending before Congress i
/ bin viii be reintroduced early in the
coming session TO increase the mem
bership OF the commission by two moro
! members and for reorganization OF
that body along regional lines. An
other measure will provide for Fed :
eral supervision of the issuance Of all
railroad securities. Then there Ia tho
Newiands commission investigation.
no" on. designed TO meet all possible
railroad problems.
These circumstances indicate. there
fore. that hasty action by the commits
( sion upon the new-rate petition IS too
much TO expect. 1t inay be six months
before the findings OF that body are
! announced, however urgent a case the