Arizona republican., 1917-06-29
The Fifteen Per Cent Increase

The Fifteen Per Gent Increase
 It is a good sign of changed and better way of thinking in this country that whatever antag- onism there the application of the railroads Tor fifteen per cent increase of freight it is not expressed in bitterness. few years ago such q proposition would have called forth howl of protest against corporations The demagogue would have found himself in clover Now the people are inquir- ing mildly but none less earnestly, whether such an increase is necessary and reasonable.
 The principal argument of the railroads in favor of fhe increase is not that the Adamson law has in creased the cost of operation. There a tacit ard a more or less well-defined understanding be- tween the government and the roads last August before the Adamson law was enacted, that an in crease the additional cost of operation under that law would be permitted. But the Adamson law has added than per to the cost of oper- atng the roads, that if they are now asking for a reasonable increase they would have had to ask for one if the Adamson law had not been enacted
 Against the increase is showing that the roads are more prosperous than ever that, for instance. the gross revenues for last March s225,0O0O00 more than for the corresponding month of last Opposed to this is the claim of the roads that not withstandng this increase of the gross, the net rev. enues for all the the country s9,OOOOOO less for March this year than for the month last year
 A shrinkage of s9OOOOO0 for month, distributed among all the roads would not necessarily be seri- one; would of itself show impairment of their earning power would call for relief in the volume asked, and standing alone would not warrant granting such increase.
 But coming to their main argument the roads point out that unusual demand for service is made upon them by the government at this time and that they cannot meet it without unusual expenditures This demand is likely to increase and consequently their expenditures will increase. If they had the money the great cost of additional equipment and transportation facilities. the prices for which just abnormally high that would be another thing But they claim that they have the and borrowing power of late years has lessened that procuring money for even normal needs has become increasingly difficult. A later sharp decline in railway securities has been caused by the increase of the net revenues. This in brief is the railroads side of the controversy which is added the state ment that the demand of the government upon them for additional transportation facilities requires them provide facilities for abnormal need which will end with the restoration of peace.
 As to the application for a blanket increase of fifteen per the shippers and others in opposition say that it unprecedented that this demand should be granted without showing to it's reasonable and that in order make such a showing there be investigation in which there be segregation of commodities and of the needs of the various roads If classes of freight should pay more certainly there are some classes which al ready yielding sufficient profit is doubtful it is urged. whether the Interstate Commerce Commits could grant the roads application without ex- ceeding it's powers; that is, without a showing in detail by the roads to the reasonabeness of the proposed
 Moreover, it is contended that whatever increases may be made, there should be none at all on food supplies which are already paying as much as the traffic will bear. An increase of them would add to the already heavy burden of the and would further discourage production at time when production is more sorely needed than at any pre- vious time within the country's history It is ad- mitted that of the roads, the trunk lines east of Chicago and the within the southern class- fication, should have perhaps, some relief not in the blanket form proposed.
 We of the ntermountain region have a special h. terest in this matter, such the people of part of the country have, and in that interest alone would oppose increase this any other time while suffer under the handicap of preferential rates to coast points. We already thereby so discrimirated against be hemmed and ex- cuded from markets A fifteen per cent increase of rates applied alike the preferential and to the ntermountan would emphasize that dis elimination to such extent that Arizona towr would be shut off from any market beyond a radius of fifty miles, Until the handicap of the preferential rates has been removed, sef-protecton would de- mand local opposition to the proposed fifteen pei increase.
 Yesterday we presented the railroads side of th controversy in a statement prepared by MT. w. A Drake. general manager of the Santa Fe Prescott 6