Every evening, Wilmington daily commercial., 1918-05-14
RAILROAD RATES
SURE TO ADVANCE
Twenty five Per Cent Increase for
Freight and Passenger Service
Said to be Essential.

WASHINGTON. u. C., May l4.-Esti-
mates made Yesterday by railroad admin
istration officials indicate that an increase
of Mt least 25 per cent III freight and
nassenpcr rates will be necessary TINS
rear 10 meet the higher costs oi iuei,
wages equipment aud other operating
expcnses. now set mt between Sb0O,oUu-
600 and s75O,0OO,00O more than last
year.
Recommendation that rates he raised
bv approximatclv this percentage has
been made to Dlrcctor-tiencrai McAdoo
bv his advisers He is expected to act
within the next SIX weeks, and to put
increases into effect immediately. snip
pers will be permitted to appeal TO the
Interstate Commerce COMMISSION under
the rnilroads act and final decision VIII
be with President Wilson
Such an increase as IA proposed would
be the biggest IN the history ol American
RAILWAYS. rs the percentage IS larger
than any ever sought by tho railways
under private management, and would
appIy alike to the entire country. Both
class and commodity schedules would
be affected
Rate experts of the Interstate Com
merce Commission and Railroad Admin
fSfr1LiOn now sIt Nb NpiN 'Aa -,
ules. Any increases to be ordered Will
be arranged in a manner "a preserve
rate relationships between communities
and regions. oiIicinls said today, SO that
industries and commercial interests will
be subject To the same degree of rate
competition as Mt present Passenger
fares would be raised under the plan
suggested to about cents Il mile, from
the existing general rate of little less
than Dig cents n mIle.
The proposed increases, IT IS cStt-
mated. would weld about SND,Wh,oh
500. 100000 in freight and S2nWm.-
900 in passenger revenues Tins would
leave a margin above the estimated IN
crease in operating expenses eventually,
but since the new rates would not 80
into effect until The year IS halt over
their WELD would fall several hundred
million dollars short ot meeting the
anticipated deficit thIs year
It. is roughly estimated hy railroad
administration officials that the roadS
this wear will spend between $4,000
600 and $3.50. .OO0O00 moro for WAGES
than last wear. between Sl1UN0 MM
and Sl5O.OO0, 600 moro for coal and he
tween S1SOOOO,O00 and S250Wm0n
more for cars. locomotives rails. ties,
terminal facilities harges for inland wa
terwavs and other supplies and cqlnp-
ment These figures may ho lowered hy
later developments, hut officials WHO
have studied the situation cloSciy arc
inclined to believe that they arc more
likely to prove higher
The estimate nf increased wages II
based on the probability that the dlfer
tor-general will approve a general schone
Of higher pay for workmen in accordance
with the Railroad Wage Commission
recommendations. which called for an
addition Of $500 600, 900 to the $1,000.
600, ,O0J payroll Of last year
Although the question Of the exact
prices the railroads are TO pay for coal
under government operation has not
been settled. officials IN charge of pur
Chascs arc said to have decided that It
Will he necessary 10 pay At least 63
cents moro y ton than under contracts
now expiring RAILROADS. coal con