The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-05-14
20 P: c. RAISE IN
RAILROAD RATES
Biggest Increase in History
Is Recommended to Di-
rector General McAdoo
SHIPPERS APPEALS
TO GO TO WILSON
Passenger Fares Will Be Raised I'm
der the Plan Suggested to About
Three Cents a Mile-Rate Experts
Working on New Schedule.

WASHINGTON, May 14.-Estimatcs
made by railroad administration off
Gals indicate that an increase of at
least - per cent i'll freight and passen
ger rates will be necessary this year
to meet the higher costs of fuel, wages,
equipment and other operating eX-
penses, now set at between 100000 900
and $3.50, 100000 more than last year.
Recommendation that rates be raised
by approximately this percentage has
been made to Director General McAdoo
by his advisers He is expected to act
within the next six weeks, and to put
increases into effect Immediately. Ship
pers will be permitted to appeal to the
interstate commerce commission under
the railroads act and final decision will
be with President Wilson.
Such an increase as is proposed would
be the biggest in the history of the
American railways, as the percentage
Is larger than any ever sought by the
railways under private management,
and would apply alike to the entire
country. Both class and commodity
schedules would be affected
Rate experts of the interstate com
merce commission and the railroad adj
mlnistration now are at work on the
new schedules. ANY increases to be
ordered Will he arranged in a manner
to preserve rates relationships between
communities and regions, officials said
today, so that industries and CONNER
cial interests will be subject to the
same degree of rate competition as at
| present. Passenger fares will be raised
under the plan suggested to about three
cents a mile, from the existing general
rate of a little less than 2la cents
The proposed increases, it is estimat-
/ ed, would yield about 100000 600
/ 500, 100000 in freight and $2000 600
| goo III passenger revenues. This would
! leave margin above the estimated in
crease IN operating EXPENSES eventually,
! but since the new rates would not go
into effect until the year is half over,
their yield would fall several hundred
million dollars short of meeting the an
| ticipated deficit this year
1t is roughly estimated by railroad
administration officials that the roads
this year viii spend between $300,000.-
GOO and $3.50, 100000 more for wages
than last year; between $lo0,000. O0o
and SlJ0,000,000 more for coal; and be
tween $lS0,000,000 and S250.000. 00C
more for cars, locomotives. rails. ties
terminal facilities, bargcs for inland
waterways and other supplies and equip,
ment. These figures may be lowered by
later developments, but officials who
have studied the situation closely ar,
inclined to believe that they are more
likely to prove higher.
The estimate of increased wages i,
based on the probability that the di
rector-Gcneral will approve genera
scheme of higher pay for workmen il
accordance with the railroad wage com
mission S recommendation, which called
for an addition of 100000 to tn,
- 900, 600 600 pay roll of last wear.
Although the question of the exac
prices the railroads are to pay for Goa
under government operation has no
been settled, officials in charge of pur
chases are said to have decided that j
will be necessary to pay at least s.
cents more ton than under contract
| now existing. The railroads coal con
| sumption amounts to about 175, 900 90
| tons a year.