The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1918-05-17

- lby railroad officials indicate
yam increase OF at least 25 per
Eyrt in freight and passenger rates
Will be necessary this year to meet
kJhe higher costs Of fuel, wages,
Aulpment and other operating ex-
lies set at between 100000, 900
&fs750,000,0OO more than last
- Recommendation that Gates be
/ ed by approximately this per-
p tage has been made to Director
Gefera McAdoo by his advisers. He
is expected to act within the next six
weeks, and to put increases into ef-
feet Immediately. Shippers will be
permitted to appeal to the Interstate
Commerce commission under the
railroads act. and final decision will
be with the President
Such an increase as is proposed
would be the biggest in the history
of American railways, as the per-
centage is larger than any ever
sought by the railways under pri-
vate management. and would apply
alike to the entire country. Both
\, class and commodity schedules would
be affected.
~ Rate experts OF the Interstate
Acommerce commission and railroad
4 XaministrationS now are at work on
Jew schedules. Any increases to be
4 ordered will be arranged In a man
F}ner to preserve rate relationships be-
4ween communities and regions, Off
= Yhls said, so that industries and
D Nmercial interests will be subject
N he same degree OF rate competi-
as at present.
NJ passenger fares would be raised
under the plan suggested to about
/ three cents a mile, from the existing
/ general rate Of a little less than two
and one-half cents.
The proposed increases, it is esti-
mated, would yield about $780,
4 600, 200, $500, 900, 900 in freight and
: 5000, 900. 900 in passenger revenues.
Fhis would leave margin above the
Minated increase in operating ex-
knses eventually, but since the new
ss1afbs would not go into effect until
*the year Is half over, their yield
<2&ould fall several hundred million
Nlollars short Of meeting the antici-
q Sated dsafftrthis year.
~ issfopghly estimated by railroad
illustration officials that the
"a ~ fhis year will spend between
$S0S, ,oOo, 600 'and s35O.OO0. 900
more for wages than last year; be-
tween $120,000,000 and $150,000,-
600 more for coal. and between
180,000.000 and $3.50, 900, 900
more for cars, locomotives, barges
for inland waterways and other sup
plies rad equipment. These figures
mf Alovcred by laeer develop
mA fxsp0t dcials who have stud
iedthe situati6n ci6ssly Are inclined
to believe that they ars more likely
to go higher. So
The estimate of Increased wages Is
based on the probability that the -di-
rector general will approve general
'eseheme of higher pay for workmen
accordance with the railroad wage
sfcomnission's Recommendation,
which called for an addition of $780,
100000 to the $1,000, 900 900 pay
roll of last year.
81 Although the question OF the ex-
) act prices the railroads are to pay for
coal under government operation
> has not been settled. officials in
charge of purchases are said to have
decided that 1t will be necessary to
pay at least 65 cents more a ton
than under contracts now expiring.
Railroads coal consumption amounts
to about 175.000,000 tons a year.
The cost OF extensions and better
ments, particularly at terminals.
now being planned. can be determ-
ined at this time only in most gen.
eral terms. but officials point out
that the financial burden of these
K'sQl be felt within six months and
" egentualIy they must be a,e<
-