Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1918-05-16
WILL SOON COST
MORE TO TRAVEL
Both Railroad Passenger and
Freight Rates Likely to Be
Increased rs Per Cent
RECOMMENDATION MADE
eIcAdoo's Advisers Urge the Advance
to Meet the Higher Cost Of Fuel
wngco, Equipment and Operation

Washington. May 13.-Estlmates made
to-day by railroad administration officials
Indicate that an increase of at least % per
cont III freight and passenger rates will
he necessary this year to meet the highe.
costs Of fuel, wages. equipment and other
operating expenses now set at between
5000 001O00 and s75ooc0.ooc -1.oie Tran last
year.
Recommendation that ra.es be raised
by approximately this percentage has
been made to Director General McAdoo
by his advisers. Flo is expected to act
Within the next SIX weeks and put in
creases into effect Immediately. Shlrperg
will DO permitted TO al peal to tho Inter-
state Commerce Commission under the
railroad act ard final decision viii co with
President Wilson.
Such an increase a. ~ proposed would
DO Tho biggest In the history Of tho Amer
can railways. as the percentage Is larger
tnaa any ever sought by the railways
undor private management ana woul1
apply uliko to the entire country. Both
class and commodity schedules would lie
affected
Pate exports OF tho Interstate Commerce
Commission and the railroad admins
tration now arc at work on now sched-
u,es ANY increases to be ordered Will
be arranged In q manner to preserve rate
relationship between communities ana re-
gions, officials said 10 day, so that IN
dustries and commercial interests will
10 subject TO the same degree Of rate
competition us mt present.
Passenger fares would DO raised under
the plan suggested to about three cents
milo from the existing general rate of
little less than two and one-half
cents.
r,,A nraooead ;pcrcasns ~ Ia estimated
would yield about 5000 1000, 0Oo-$7O0, 900. 900
in freight and $500. 100000 in passenger
revenues. This would leave a margin
above the estimated increase in operat-
Ing 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 anticipated deficit this
year.
Railroad administration officials esti-
mate that the roads this year will spend
between $500 5000 and $35O,ooO,oOO more
for wages than last year, between $780,
100000 and $15o,0OO0 900 more for coal. and
between $1s0,0O0,OO0 and $25O.0O0,0OO more
Tor cars locomotives. rails. ties. terminal
facilities, barges for inland waterways,
and other supplies and equipment These
figures may be lowered by later develop
ments, but officials who have studied
the situation closely are inclined to be-
lieve that they are more likely to prove
higher.
The estimate of increased wages is
based on the probability that the direc-
tor-general will approve general scheme
of higher pay for workmen in accordance
with the railroad wage commissions
recommendations which called for an ad-
dition of 3OO,0000O0 to the $1,000, 900 900
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, off1cials in charge Of purchases
are said to have decided that 1t will be
necessary to pay at least 65 cents more
ton than under contracts now expiring.
Railroads coal consumption amounts to
about LIE. 900 tons a year.
1t Is commended that to raise pas
senger rates to cents a mile will not
reduce travel to any great extent and
the director-general is opposed to
taking any drastic steps to curtail
passenger traffic.
Railroad reports for the first three
months this year show that although
operating revenues were six per cent
greater than last year operating ex-
penses were 25 per cent greater and
net revenue from operations was only
one-half of last years
The director-general has 1t in his
power, acting as representative OF the
President. to put new rates into effect
at any time without consulting the
interstate commerce commission, or
he may apply to the commission for
authority to change schedules II he
wishes. His advisers in the railroad
administration. however, are insistent
that speedy action be taken to furnish
railroad new revenues and It Is con-
sidered probable he will adopt the
former course.
To ascertain exactly what improve
ments and extensions railroads are
making. the director general to-day
ordered companies to report what pro-
jects are under way or planned and
whether adequate funds arc available
for the work.