The Dawson news. (Dawson, Ga.) 1889-current, 1918-06-18
A BIG DISCREPANCY.

When the 25 per cent increase in freight
rates, which Director General McAdoo has
ordered, becomes effective this month the
people will be paying 40 per cent. higher
freight rates than they paid before the gov
eminent took over the operation of the rail
roads. For it will be remembered that to-
ward the end Of last year the interstate
commerce commission allowed / 5 per cent
increase. To be exact, the total increase will
be more than 40 per cent, because the Nc
Adoo advance of 25 per cent. is an advance
on the pre-war rates plus the IS per cent
granted by the interstate commerce commits
sion. So it actually means an increase Of
43:75 per cent. over the freight costs under
private ownership.
These figures are given as plain state
ments of fact, and to show the very great
additional costs that will be saddled on the
people. The only question is, are such addi-
tional costs necessary? If they are the peo-
pie will pay them without murmur. If they
are not there will be very grave dissatsfac-
ton, and justly so.
The burden of proof is on Mr. McAdoo.
The statement accompanying the announced
increase is, in substance this; The % per
cent advance will yield about S90O,O0O,OO
additional revenue which will be needed to
meet the growing operating COSTS One item
of those growing costs is the wage advance,
which is estimated at $3O0,OOO,OO The re-
naming $6OO,O0O,OOO will be required by
the rising costs in fuel and equipment gen
orally Commenting on this estimate the
Daily OklahOman says:
There is wide discrepancy between this |
statement and the estimates of the report |
made on May 8, when the increased operat- |
ing costs were reckOned at between $780,
100000 and $750,OOO,OOO 1t is interesting
to note, too, that this latter figure was ar
rived at by estimating the wage advance at
O0,O00,, and the advance in fuel costs !
at $150,000,000. The increase in equip
ment was fixed at $25O,OO0,OOO, but that
may be dismissed from consideration 1t is /
the wage and fuel estimates that command |
or rather the discrepancy between
those estimates, and the consequent need of !
revenue and higher rates.
Here is the discrepancy: On Nav 13. bv
figuring the wage increase at $3.50, 100000 |
and the fuel increase at $4,000 900. the |
revenue required was placed at
$750,000,000. On May 27 the wage increase
was estimated at $500, OOOOOO-S5O ,OOO,- |
600 less than on May 10; and in the mean
time the fuel administration, which has fix
ed the price on coal, has estimated the in |
creased fuel costs at $45,O0OOOO, or S11O,-E
100000 less than the estimate on May 8. |
And while estimates on those two items of .
wages and fuel have shrunk $3.50. 100000 |
the estimated need of additional revenue has
jumped from 100000 to 5000, 900, 900
"a jump of $15O,OOO,O 900. We therefore,
have total discrepancy, between the two
sets Of estimates, of $31O,OOO,OOO.
"That is too big a discrepancy. Three hum
dred and ten million dollars is a lot of
money even today If this $4,000. 900 !
were subtracted from the latest McAdoo es-
innate of $90O,OOO,OO0 and proportionate
decrease applied to the advance in rates we
should have Is per cent advance instead !
of 25 per cent. advance"
There is another feature of this proposi /
ton which maybe entered as at least worthy
OF mention. We were told that many eco
Monies would be effected by the govern
ments centralized operation of the railroads. /.
Superluous Office forces were to be cut
down. A wide welter of Implications were
to be abolished Many expensive competitive
customs were to be done away with
And in no spirit of complaint at all it must
be said that transportation and freight SER
vice is inferior to what it was before the gov
eminent took charge. The public has met
those restrictions and delays in fine spirit. /
The circumstances justified the conditions.
But with all those economics how is the ne
cessity for what amounts to a billion dollar
rate increase to be explained?
That is the question. The figures set
forth from the director generals office do
lot explain it They are contradictory. They
leave doubt in The YunIic mind.
There is too much senseless comnIainino