The sun., 1919-07-28
HINES EXPECTED TO
RAISE RAIL RATES
Director Considers Increase Of
10 Per Cent. in Passenger
and Freight Schedules.
HOPE IN CROP MOVEMENT
Plan Is to Help Roads When
Turned Back to Private
Ownership.
spsc,al pespeteA ., THr sux.

WASHINGTON, July 27.-A 10 per cent
increase in railroad freight rates and
passenger fares is believed likely. d.
or-General Hines lie giving close
attention to the situation regarding net
operating revenues OF the railroads un-
der Government control, the effect OF
the traffic situation on these revenues
and the advisability of placing the roads
on the same paying basis they occupied
before Government control
Mr.. Hines In not prepared yet to an
nounce his decision. He will wait pos
Tibly a month or moro until an analysis
can be presented of the traffio situation
In It's effect and relation TO rates
1t Is known that consideration has
been given to q 10 per cent increase.
This figure has been tentatively con-
sidered as representing the amount
necessary to meet the condition that
would confront the roads were they
turned back with their opera ting reve-
nues not sufficiently In excess Of oper-
ating costs to give them the ante-war
return.
Mr.. Hines has been hopeful that in
creased traffic would offset the steady
stream OF deficits the Railroad Ad-
ministration has piled up. Increased
expenses. largely wages. were put on be-
fore Increased rates and the roads never
have caught up. After the armistice
was signed traffic slumped tremendously
and to-day there are many cars In
storage throughout the country. Mr..
Hines believes IL traffic during the crop
movement season Is as great this year
az in previous record seasons the roads
will como out all right. II they do not
the only alternative so far considered
has been an increase in rates, and 1t
looks more and more likely.
VIII Not He Flat Raise.
The increase. while considered as
10 per cent. raise, will not be a fiat
percentage rate increase, as was the
case when Director-Genera McAdoo
jumped rates rs per Ncent. in June
year ago. The percentage Increase re-
suited In many twists and tears in the
rate fabric.
The 10 per cent. in the present case
represents the average increase or the
amount of additional revenue that would
be expected. Rates would be raised all
along the line. but so that the rate fabric
would not be disturbed.
In his talk last week with President
Wilson at the White House Senator
Cummins Uowa). chairman OF the SEN
ate Interstate Commerce Committee, out
lined the present railroad situation and
urged Mr.. Wilson to confer with Direc-
tor-General Hines and other officials of
the Railroad Administration and to assist
legislators in every possible way to
reach an early agreement on a construc-
tive plan for dealing with the situation.
President Wilson promised to do this.
The Senate committee expects to hear
8. Davies Warfeld on Tuesday in advo-
cacy Of tho plan drafted by the railway
executives advisory committee. This or
ganization, representing the executive
arrangements Of most OF the railroads.
has drafted plan Which contempiates
among other things the creation of a
department of transportation. compile
mentary in a way to the Interstate Com
merce Commission.
This department would include n
small commission charged with deter
mining the revenue necessities of the
railroads, while the Interstate Commerce
Commission would be expected to make
rates adequate to produce tho revenue.
II Is contended that single instrument
tality such as the Interstate Commerce
Commission cannot represent adequately
all the interests concerned. The plan
has strong support, and likewise vigor-
Gus opposition. Mr.. warfeld Is expected
to discuss the whole railroad question,
with special reference to the operation
OF such programme
On Wednesday the committee will
hear John e. Oldham of Boston. a rail-
way economist. statistician and broker.
and on Thursday Glenn z. Plumb will
be heard In behalf of the plan put for
ward by the organized employees of the
roads. Mr.. Plumb's plan is being likened
to the various schemes of Industrial
democracy that are discussed in Great
Britain. looking to a sort of partnership
OF capital. labor and the public in con-
Quoting businesses touched with n public
INT