Arizona republican., 1918-05-14
INCREASE IF 25 PER CENT IN PASSENGER
 AND FREIGHT RATES ALI OVER COUNTRY
 PLAN TOMEET RAPIDLY MOUNTING COST
Average Charge for Riding
 On Trains May Be Ad- vanced Half Cent Per Mile
 If Plan Is Carried Out
[RepubIican A. p. Leased Wirel

WASHINGTON, May 13.-EStimateS made today by railrcad administration indicate thav an increase of at least 25 per cent in freight and passen- ger rates will be necessary this year to meet the higher costs of fuel. wages, equipment and other operating eN- penses, now set at between $60O,0O0,O00 and $750000, 900 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. Shippers will be permitted to appeal to the interstate commerce commission under the railroads act, and final de- cision will be with President Wilson.
 Will Hit Entire Country
 Such an increase as is proposed would be the biggest in history ot American railways, and 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 commoditey schedules would be affected.
 Rate experts of the interstate com- merce commission and railroad com mission now are at work at new sched ules. Any increases to be ordered will be arranged in manner to preserve rate relationships between communi- ties and regions, officials said today so that industries and commercial in- terests will be subject to the same de- gree of rate competition as at present
 Cost Half Cent Per Mile
 Passenger fares would be raised un- der the plan suggested to about three cents a mile, from the existing genera rate of a little less than 21s cents.
 The proposed increases. it is esti- mated, would yield about $500, 900. 000- s700, 100000 in freight and s200, 900. O0' 1 in passenger revenues. This would 1 have a margin above the estimated in creaseS in operatin- expenses event | ually, but since the new rates woult not go into effect until the year is hal over, their yield would fall several hun dred million dollars short of meetin; the anticipated deficit this year.
 Terminal Costs Great
 The cost of extensions and better ments, particularly at terminals, nov being planned, can be determined a this time only in most general term but officials point out that the finan cial burden of these will be felt in si, months and that eventually they mus be met out of higher freight revenues An extensive scheme of econQmies t | be effected by pooling, short hauls | elimination of competition and othe new practices possible under govern ment management, is being develope slowly, but it is said the economies wi not begin to show big in reports of ex penSes for almost another year. B that time it is planned 10 reduce rate if it found possible to do so, and sti maintain railroads in normal condition
 Must Be Self Supporting
 MT. McAdoo repeatedly has eH pressed the opinion that the railroad under government operation should 1 self-supporting. For this reason. he represented as prepared to raise rate and explain to shippers that sine prices of every other kind of servic and materials have gone up, freigl and passenger rates must be expecte to follow
 It is contended that to raise pas senger rates to three cents a mile wi not reduce travel to any great exteI and the director general is opposed { taking any drastic steps to curta passenger traffic. He has frowne upon proposals to follow Great Bri , aims example of raising passeng, rates 50 per cent and thereby cut o considerable travel Commuters ratt would be affected to a lesser extei than others and might not be raise l Operation More Costly
 Railroads reports for the first thr, months this year show that althoue } operating revenues were six per eel , greater than last year, operating Q, 5 penses were 25 per cent greater ar } net revenue from operations was on r one-half of last years.
 ' The director general has it in h power, acting as representative of u
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