Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-05-14
TO MAKE RADICAL
INCREASES IN ALL
RAILROAD RATES
At Least 25 Per Cent Adj
vance Is to Be Recon-
mended.
PASSENGER FARES WILL
BE THREE CENTS A MILE
Great Boost in Cost of Operation
Necessitates $60O,oOO,OOO
Revenue Gain.
WAGE INCREASE VITAL FACTOR
Means Annual Expenditure OF $780,
100000 More Than Hereto
fore OH Tllis Item.
PASSENGER FARES WILL
BE THREE CENTS A MILE
WAGE INCREASE VITAL FACTOR
Means Annual Expenditure Of $780,
100000 More Than Hereto
fore OH TlIis Item.

iBy Associated Press1
WASHINGTON. May l2.--Estimatcs
made to-day by railroad administration
officials indicate that an increase OF
at least % per cent In freight and
passenger rates viii be necessary this
year to meet the higher costs of fuel.
wages, equipment and otter operating
expenses, now set at between SGoO000.-
COO and $50, coo 600 moro than last
year.
Recomm endatior that rates be raised
hy approximately this percentage has
been MADE 20 Director-GcucraI McAioo
BY his advisers. He is expected 10 ac:
within the next six weeks. and to put
Increases into effect Immediately. ship.
pers win be permitted TO appeal TO the
Interstate Commerce Commission un.
der the railroads act. and nna: decision
VIII be with the President.
Such an increase IS is proposed
would be the biggest In tho history
OF American railways. as tho percent
age Is larger than any ever sough. by
the railways under private manage
men,. and would apply alike TO the
entire country. Both class and com
modify schedules would hc anectcd,
Rate experts Of tho Interstate Com
mercc Commission and the railroad cd
n!niftration now are ct work on Now
schedules. ANY increases TO bc o.
dered viii be arranged IN manner
10 preserve rate relationships between
communities and regions. officials said
to-day. SO tina, Industries and com
merciai Interests VIII be subicc, to
the same degree o. rate competition
at present.
pASSE.ECI.R RATES SInIFTn
GO TO 3 CENTS 4 MILE
Passenger fares would be raised u:l-
der the plan suggested. 20 about :: cents
mile from the existing general rate
OF n little less rhan 2I-2 cents.
The proposed Increases |: IS esti-
mated would yield about S9Oo. .0oc coo
sIot,0og,o00 in freight and $500. 900. 900
In passenger revenues. Tkis would
leave n margin above the estimated in
crease In operating expenses cventu.!-
~. but since the now rates would not
20 into effect until the wear : ha.f
over their yield would fan several
hundred million dlllars short Of meet
ing the anticipated dcficIt this wear
II is roughly estimated by railroad
administration officials 'hs,t tho roaCs
this year will speud between sa0o. orn. :
400 and s3j0,onn 900 more for wne.s
SI5c.0n1,06o more for coal and between
'Iso.oot,o0o and s25o.oc0.oO0 more tor
carr. locomotives. rails. ties. terminal
facilities. bargcs for inland Waterways
and other supplies and cquipn, en;
These figures may be lowered by l,te-
developments. but official. who have
studied the situation closely are in :.
clincd TO believe that they arc NOR.
likely 10 go higher.
'rhe estimate of increased wages Is
based on the probability that the di-
rector general will approve a general
scheme of higher pay for workmen
ia accordance with the railroad wage
commissions recommendations. which
called for an addition Of $500 100000 to
the S2.ooo,0oo.o0O pay roll of last year.
NECESSARY TO PAY
GO CENTS MORE FOR CoAI.
Although the question Of the exact
prices the railroads are to pay for coal
under government operation has not
'-en settled officials in charge Of pur-
rhases are said to have decided that it
will be necessary to pay at least ca
cents more ton than under contracts
now expiring. Railroads coal con-
sumption amounts to about $4,000, ,O0O
tons a year.
The cost of extensions and better
ments. particularly at terminals. now
being planned can be determined at
this time only in most general terms
but officials poin; out that the nnancial
burden OF these will be felt within six
months and that eventually they must
be met out of higher freight revenues
An extensive scheme of economies to
ha CHI
,..mination of competition and other
new practices possible under govern
ment management. is being developed
slowly. but il is said tho economies
will not begin TO show big in reports
Of expenses for almost another year
by that time. it is planned to reduce
rates If it is found possible to do so
and still maintain railroads in normal
condition.
Mr.. McAdoo repeatedly has express.
cd the opinion that the railroads un-
der government operation should be
self supporting. For this reason. he is
represented as prepared to raise rates
and explain TO shippers that since
prices OF every other Kind of service
and materials have gone up. frcigh,
and passenger rates must be expected
TO follow.
INCREASE OF RATES
WILL NOT REDUCE TRAVEL
IT is contended that to raise pas
senger rates to cents a mile will mo-
reduce travel to any great extent. ant
the director general Is opposed to talk
Ing any drastic steps to curtail pas
senger traffic He has frowned upoi
1Cor1inNn1 ~, c. .r,,r a -pn--,c-roo- -