The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-05-18
Higher RAILROAD RATES.
INCREASE OF FREIGHT AND
PASSENGERS.
More Money Neehcd-COst of Oper-
alton and Other Considerations
Prompt Government to Make
Change.


officials indicate that an increase of
at least 25 per cent. in freight and
passenger rates will be necessary this
year TO meet the higher costs Of fuel,
wages. equipment and other operating
expenses, now set at between 5000.
10000 and s75O,OOO.OOO more than
last year.
Recommendation that rates be rails
ed by approximately this percentage
has been made TO Director General
McAdoo by his advisors. He Is ex-
pected to act within the next six weeks
and to put increases into effect. Ship
pers will be permitted to appeal to
the interstate commerce commission
under the railroads act and final de-
cision will be with the president.
Such an increase as Is proposed
would be the biggest in the history OF
American railways. as the percentage
larger than any ever sought by the
i railways under private management,
| ana would apply alike to the entire
country. Both class and commodity
schedules would be affected.
Rate experts of the interstate COM
nerce commission and railroad ad-
ninistration now are at work on new
| schedules. Any increase to be order
ID will be arranged in a manner to
preserve rate relationships between
| communities. so that industries and
l commercial interests will be subject
same degree OF rate competition as
1t present.
Passenger fares would be raised
under the plan suggested to about
| three cents q mile.
The proposed increases. 1t is esti-
mated, would yield about 100000
/ )oo-s7OO. 900. 900 in freight and
100000 900 in passenger revenues.
rhis would leave a margin above the
estimated increase in operating ex-
penses eventually. but since the new
rates would not go into effect until
Tie year Is half over their yield
would fall several hundred million
iollars short of meeting the estimat-
ID deficit this year.
II Is roughly estimated by railroad
| administration officials that the roads
his year will spend between $780,
100000 and $35O.OOO, 1000 more for
| wages than last year; between $780,
| 100000 and $15O,OOO,OOO more for
coal: and between $lSO,OOO,O 900 and
S2SO.000.000 more for cars, locomo-
Ives. rails and other supplies and
l equipment. d.
The estimate of increased wages is
BASED on the probability that the di-
'ector general will approve O general
scheme OF higher pay for workmen
N accordance with the railroad wage
| commissions recommendations which
'alls for an addition of $500, ,OOO, 900
% the $4,000, ,OOO,O pay roll of last
,ea~.
Although the question of the exact
'rices the railroads are to pay for coal
Under government operation has not
'een settled, officials in charge of pur-
;hases are said to have decided that
I would be necessary to pay at least
30 cents more a ton than under con-
racts now existing. Railroad coal
;onsumptions amount to about 49,
| 100000 tons a year.
The cost of extensions and better
| nents can be determined at this time
only in most general terms, but offl-
'ials point out that the financial bur
len Of these will be felt in six months.
md must eventually be met in higher
rates.
An extensive scheme of economies
% be effected by new practices pos
hble under government management
being developed slowly but it is
aid the economies will not begin to
snow big In reports of expenses for
almost another year. BY that time, it
planned to reduce rates IL IL is
found possible to do so.
Mr.. McAdoo repeatedly has express
I'd the opinion that the railroads un-
Ter government operation should be
self supporting. For this reason he
s reported as prepared to raise rates
since prices Of every other kind Of SER
vice and materials have gone up.
III Is contended that to raise pas
'enger rates to three cents mile
VIII not reduce travel to any great